The Bank of Industry has signed a Memorandum of Understanding with ten banks to provide loans at low-interest rate to the Small and Medium Enterprises sub-sector.

According to the MoU, the 10 banks will provide loans for the SMEs certified by the BoI at an interest rate of the Monetary Policy Rate plus six per cent, with a tenor ranging from six to 12 months.

The BoI, on the other hand, will offer the term loans to the qualified SMEs at an interest rate of between nine and 10 per cent, with a tenor ranging from three to five years, and a moratorium of six to 12 months.

The Managing Director/Chief Executive Officer, BoI, Mr. Rasheed Olaoluwa, said the development would boost business and economic activities in the country.

He said, “The activities in which the BoI and the SME-friendly banks will collaborate include the following: provision of long-term loans to qualified SMEs by the BoI based on its risk acceptance criteria; provision of working capital to the SMEs by the SME-friendly banks also based on their individual risk acceptance criteria.”

A statement by Ecobank Nigeria also quoted its Deputy Managing Director, Mr. Tony Okpanachi, as saying that the selection of the bank by the BoI was in recognition of its massive support for the SME sub-sector overtime.

He stressed that Ecobank would continue to partner other agencies to develop the sub-sector.

Punch