The Bank of Industry (BOI) 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 at an interest rate of between nine and ten percent, with a tenor ranging from three to five years, and a moratorium of six to twelve months.
The Managing Director /CEO of BOI, 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 including 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.”
Also, a statemant by Ecobank Nigeria also quoted its Deputy Managing Director, Mr. Tony Okpanachi,as saying that the selection of the banks by BOI was in recognition of its massive support for the SME sub-sector overtime.
He said Ecobank would continue to partner other agencies to develop the sub-sector.