Credit Products

Products

 

Micro Credit Products:

• Micro credit- agric.
• Co-operative Family Feeding Programme (CFFP).
• Operation Feed Yourself (OFY)
• Micro credit- non agric.

Commercial Agricultural Products:

• Agriculture Land Financing (ALF)
• Input Procurement Credit Facility
• Equipment Leasing Products Programme (ELPP)
• Post-harvest process logistics and Storage finance
• Equipment Leasing Products Programme (ELPP)
• Export Finance Product Programme (EFPP)

Women & Youth Products:

• Youth Agricultural Revolution in Nigeria (YARN)
• Women in Agriculture and Enterprise (WAE)
• BOA Rural Business Initiative cooperative loans (BOARBI)

Other Products:

• Payday Loan
• Nano Loans (Lift the poor)

Requirements For Accessing Credits

 

Micro – Credits

• Completed loan application form
• Mandatory minimum savings balance
• Provision of two reputable guarantors.
• Micro business undertaking should be economically viable
• Provision of Bank Verification Number (BVN)
• Signing of global standing instruction (GSI).

Small, Medium and Large Enterprise Credits (SMLE)

Individual

• Completed Loan Application Form
• Feasibility Study Report/Business Plan for the proposed project.
• Provision of Bank Verification Number (BVN)
• Signing of global standing instruction (GSI)
• Equity contribution

Corporate

• Completed Loan Application Form
• Feasibility Study Reports/Business Plan for the purposed project.
• Board Resolution authorizing the company to borrow from BOA.
• Certificate of Incorporation
• Audited Financial Statements for the last three years
• Bank Verification Number (BVN)
• Global standing instruction (GSI).
• Equity contribution.

Collateral

Types of Collateral/Security

Acceptable securities include any of the following:

• Real Estate
• Bank Guarantee from acceptable Banks
• Irrevocable Standing Payment Order (ISPO) – States and Local Governments
• Personal Guarantee in addition to others.

On – Lending Facilities

This is a relationship through which the Bank partners with States or Local Government, State Micro Credit/Poverty Reduction/Agricultural Financing Agency, Non-Governmental Organization (NGO), Community Based Organization (CBO), Self Help Groups (SHGs), Corporative Societies and associations to reach larger segment of Nigeria, especially the underprivileged with micro credit for enterprise development.

• The fund obtained from the Bank must be fully secured
• On-lending agency is responsible for payment of loan and accrued interest.

Collaborations

Collaboration involves the establishment of formal relationship with a third party for the purpose of financing Micro, Small and Medium Enterprises (MSME) project jointly. It is another strategy through which the Bank reaches more clientele especially at the grassroots.

The following are some of the Banks possible partners:

• International organizations
• Federal, State and Local Government/Agencies
• Non-Governmental Organizations
• Other purpose-oriented Institutions, e.g. Research Institutes, Academic Institutions
• Companies like Micro Finance Banks, credit thrift etc.
• Individuals

Types of Collaboration

Collaboration could be in the form of part funding or funds management arrangement with the Bank as the scheme managers.

Funded Collaboration

Collaborating Agency provides fund and the Bank uses its framework for management at a fee as agreed by both parties.

Guarantee Fund

This involves providing a guarantee fund in the ratio to be agreed by both parties.

The Bank provides credits while the partners provide the guarantee funds.

Non- Funded

This is an arrangement whereby the collaborating parties organize groups and bring them to obtain credit facility from the Bank on the Bank’s credit policy.  The third party does not necessarily make financial contribution but must fully secure and guarantee the facility.

Requirement for Collaboration

• Expression of interest to collaborate with the Bank
• Provide concept for collaboration.
• A Memorandum of Understanding (MoU) to be drawn and executed by both parties to guide the Programme.
• Beneficiaries of the Programme will enter into account relationship with the Bank.
• Bank and Collaborating Agency oversee the implementation of collaboration Programme to ensure success.

Interest Rates

Interest rates and other bank charges are as advised by the Bank periodically.