BOI To Provide Low Interest SME Credits Through Banks

The Bank of Industry
(BoI) has announced its intention to provide loans at low interest rate to entrepreneurs engaged in small and medium enterprises (SMEs) across the country through commercial banks.
The managing director/chief executive of BoI, Mr. Rasheed Olaoluwa disclosed this to newsmen in Lagos on Monday during the signing of Memorandum of Understanding (MoU) between BoI and Ecobank to provide such facility to SMEs.
Olaoluwa said BoI has selected nine banks in the country to provide such services based on their support to the SMEs, stressing that the low interest rate will heighten activities in the subsector.
He said the 10 banks had agreed to provide working capital loans to SMEs qualified by the BoI at interest rate of Monetary Policy Rate (MPR) plus six percent with tenor ranging from six to 12 months.
The BoI boss said the bank would provide Term Loans to the qualified SMEs at between nine and ten percent rate with tenor ranging from three to five years and moratorium of six to 12 months.
He also said the bank selected the ten banks based on their support and capital base outreached to SMEs.