how to get dbn loan

How To Apply for Loan From Development Bank Of Nigeria (DBN)

The federal government of Nigeria has been taking a stronger and different approach to ensuring that the economy is boosted. One of the approaches is the emergency of the Development Bank of Nigeria (DBN).

Micro, small and medium enterprises (MSMEs) play a very important role in any part of the world. They are among the wheels that drive the economy of any country, and to ensure they can survive whatever is thrown at them, they are eligible for the Development Bank Of Nigeria (DBN) Loan.

The MSMEs are the largest employers of labour in many developing countries with low income including Nigeria. To guarantee their sustainability, governments in any country in the world in conjunction with their respective financial institutions will find a common ground so that their viability is not threatened due to lack of funds or access to finance, which could then lead to rising in unemployment.

Development Bank Of Nigeria (DBN) was motivated by the need to address the major financial challenges being faced by Micro, Small, and Medium Scale Enterprises (MSMEs) in Nigeria.

The objective has been clear right from the inception, which is to help MSMEs and small Corporates in Nigeria through the provision of loan facilities at a very low-interest rate.

Therefore, a country that is interested in working towards economic growth, poverty reduction, employment creation, and shared wealth creation will get behind the Micro, small and medium enterprises (MSMEs) and then provide them with the support and conducive environment to change the fate of a nation.

ABOUT DEVELOPMENT BANK OF NIGERIA (DBN)

Development Bank of Nigeria (DBN) is a creation of the Federal Republic Of Nigeria to help SMEs and companies with the required loan amount needed to continue operating their business.

DBN loans can be accessed through PFIs, which include Commercial Banks, Microfinance Banks, Development Finance Institutions (DFIs), and other Financial Institutions.

List of Commercial Banks You Can Get DBN Loans:

The DBN loan can be accessed via any of the commercial banks in Nigeria, they are:

  1. Access Bank Plc.
  2. GTBank.
  3. First Bank Nig Ltd.
  4. First City Monument Bank Ltd (FCMB).
  5. Ecobank Nigeria Bank Plc.
  6. Fidelity Bank Plc.
  7. Providus Bank.
  8. Sterling Bank Plc
  9. Stanbic IBTC Bank Plc.
  10. Wema Bank Plc.
  11. Union Bank of Nig Plc.

List of Microfinance Banks (MFB) You Can Apply For DBN Loans

The DBN loan can be accessed via any of the microfinance banks in Nigeria, they are:

  1. Trust Microfinance Bank.
  2. Stanford Microfinance Bank.
  3. NPF Microfinance Bank Plc.
  4. Seedvest Microfinance Bank.
  5. Regent Microfinance Bank.
  6. Microvis Microfinance Bank.
  7. LAPO Microfinance Bank Ltd.
  8. Parallex Microfinance Bank.
  9. Mainstreet Microfinance Bank Ltd.
  10. La Fayette Microfinance Bank Limited.
  11. FSDH Merchant Bank.
  12. Infinity Trust Mortgage Bank.
  13. Jubilee Life Mortgage.
  14. HASAL Microfinance Bank.
  15. Infinity Microfinance Bank Ltd.
  16. Davodani Microfinance Bank.
  17. Accion Microfinance Bank Limited.
  18. Addosser Microfinance Bank.
  19. AB Microfinance Bank Nigeria Ltd.
  20. Bosak Microfinance Bank.
  21. Baobab Microfinance Bank.

WHO CAN GET A DBN LOAN?

All MSMEs, both start-up or existing businesses involved in production or sales can apply for DBN Loan. If they are to qualify for the Development Bank Of Nigeria Loan, they must be customers in any financial institution like commercial banks and microfinance banks.

One of the reasons why DBN requests that applicants must be a customer of any eligible financial institution in Nigeria is that once approved, funds are disbursed to their accounts.

Also, the banks are like the links between DBN and the customers, therefore all activities go through them including repayment and application.

DBN loan repayment tenure is up to 10 years with a moratorium period of up to 18 months). The interest rate is quite low which will depend on the market. You can confirm the preceding interest rate from your bank before going for the loan. The DBN customer care representatives can also be reached for such information.

ELIGIBILITY CRITERIA OR REQUIREMENTS TO GET DBN LOAN

To be able to receive finance from Development Bank Of Nigeria (DBN), some conditions must be met by you. All participating financial institutions are expected to provide the requirements to their customers as imposed by DBN.

To be eligible to receive loans from the Development Bank Of Nigeria (DBN), all business owners must be operating an account with participating banks in Nigeria and with a good credit report.

Only a normal account with any of the Participating Financial Institutions (PFIs) will qualify for the DBN loan. A bank account opened without all the necessary documentation may be disqualified. Therefore, if you are a tier one account holder, you may need to open an additional account depending on the bank you are using.

For instance, some commercial banks will advise that you open a microfinance account with them and run it for at least 3 months to be qualified for DBN loan.

Customers are also expected to go through a documentation process. The bank under which you want to register will provide you with the forms. You will also need to submit some documents as requested by your bank. Customers can call their bank’s phone number to make further enquiries.

HOW TO GET A DEVELOPMENT BANK OF NIGERIA (DBN) LOAN

Step 1: Visit your bank

The first step is to visit any of the participating financial institutions (PFIs) in Nigeria. Commercial Bank, Microfinance Bank, Development Finance Institution (DFI), and other Financial Institutions give out DBN loans, all you need to do is to indicate your interest in the said loan.

The customer care agent will help as regards that and also provide you with all necessary information that may help you. This is to ensure you fully understand how the DBN loan works.

Step 2: Appraisal

The bank will want to know about the purpose of the loan and how you want to use it. If it is promising, the PFI will now reach out to the Development Bank Of Nigeria (DBN) for funding.

This might take a while for you to get a reply. It could take up to 72 hours but do note that you will be given feedback provided you complete the necessary documentation needed for the DBN loan application.

Step 3: Rejected or Approval?

There are two possible outcomes, it is either your DBN loan is rejected or approved. If DBN approves the loan, DBN will disburse to the Bank and the bank will also disburse to successful applicants.

If the DBN loan application is rejected, feedback will be provided to you and the reasons why your loan was rejected.

HOW TO CONTACT DEVELOPMENT BANK OF NIGERIA (DBN)

There are different ways to get in touch with DEVELOPMENT BANK OF NIGERIA (DBN) customer care. You can reach out through their phone numbers, email addresses, or by visiting their head office.

For Enquiries, call 09-904-0000 between the hour of 8 am – 5 pm.

Head Office’s Address:

The Clan Place,
Plot 1386A Tigris Crescent, Maitama, Abuja, Nigeria
Call: +234-9-904-0000, +234-811-3841-699
Email: [email protected]

DBN Liaison Office:
Plot 952/953 Idejo Street,
Victoria Island, Lagos, Nigeria
Call: +234-1-906-4000.

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