INTERVENTION FUND FAQs
FAQ ON DEVELOPMENT BANK OF NIGERIA (DBN) SME ON-LENDING FACILITY TO FCMB
This is a credit line facility availed to FCMB by Development Bank of Nigeria (DBN) so that FCMB can lend to her eligible SME/ Small Corporate customers.
To grow MSMEs sector by increasing their productivity and output.
Improve access to finance to SMEs through alternative source of funding.
Reduce the high financing costs for MSMEs of all sizes when sourcing for funds from commercial banks.
All business activities could be financed with the exception of the following Exclusion List:
Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements
Production or trade in pharmaceuticals, pesticides/ herbicides, ozone depleting substances*(except Hospital & healthcare facilities), polychlorinated biphenyls (PCBs) subject to international phase outs or bans
Trade in wildlife or wildlife products regulated under Convention on International Trade in Endangered Species (CITES)
Production or trade in weapons and ammunitions
Production or trade in alcoholic beverages (excluding beer and wine)
Production or trade in tobacco
Pornography and/ or prostitution
Gambling, casinos and equivalent enterprises
Racist and/ or undemocratic and or neo-nazi media
Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where DBN considers the radioactive source to be trivial and/ or adequately shielded
Cross-border trade in waste and waste products, unless compliant to the Basel Convention and the underlying regulations
Production or trade in or use of unbonded asbestos fibers
Drift net fishing in the marine environment using nets in excess of 2.5km in length, electric shocks, or explosive materials
Production or trade in wood or other forestry products other than from sustainably managed forests
Production or trade in wood or other forestry products other than from sustainably managed forest
Production or activities involving forced labor or child labor
Any activities involving significant degradation or conversion of natural and/ or critical habitats and/ or any activities in legally protected areas
Activities involving live animals for scientific and experimental purposes, including the breeding of these animals
Military or police equipment or infrastructure
Term Investment Loan: To be applied towards funding borrower’s capital expenditure projects
N100million for MSME
N200million for Small Corporates
Working Capital Loan: To be applied towards funding borrower’s working capital requirements
Loan Amount: N61million for MSME
N200million for Small Corporates
Term Investment Loan: 10 years
Working Capital Loan: 3 years
Tenor : FCMB Interest Rate
<= 3 years : 15.6%
More than 3 years but <= 6 years : 17.6%
> 6 years : 19.1%
NOTE: MAXIMUM SPREAD 6% FOR FCMB
Loan shall be disbursed as
Term Investment Loan
Working Capital Loan
No overdraft allowed.
Yes, for
Term Investment Loans – Up to 18 months commencing from the date of first disbursement for each project financed.
Working Capital Loan – Up to 6 months commencing from the date of first disbursement.
Yes we do, we require acceptable security as defined in bank’s SME Credit Policy Manual.
Repayment shall be structured as Monthly, Quarterly, Termly or Bi- annually
For Customers to be eligible for this loan,
Customers must have a minimum of 3 months banking relationship with FCMB before the application can be initiated.
Facility amount per transaction must not exceed the single obligor limit as defined above.
Satisfactory Credit report of the company & the directors.
Company must be duly registered with CAC
Company must comply with the provisions of Companies and Allied Matters Act (1990) such as filing of annual
Customer must be operating within the targeted sectors as defined in the target market section by DBN.
You can send a mail to businessbankingroup@fcmb.com or apply through your account officer/Branch.
You will send the following documents to us:
Photocopy of Certificate of Incorporation (For limited Liability Company)
Certified true copy of Memorandum and Articles of Association and Forms CAC 2.5 (Allotment of Shares), CAC 2.3 ( of directors) {for LLC)
Directors) and CAC 2.1 (Appointment of Company Secretary) {For LLC)
Photocopy of Certificate & Form of Registration (For enterprise)
Quotation/Proforma Invoice for the supply of items of Machinery and Equipment (For Term Loan if applicable).
Sources and quotations for Raw Materials expressed in quantity and amount (if applicable).
Means of Identification of the Chief Promoter and one other Director of the company.
Biometrics Verification Number (BVN) of major shareholders of the company
Accepted offer letter issued to the customer by the FCMB
FAQ ON BANK OF INDUSTRY (BOI) SME ON-LENDING FACILITY TO FCMB
This is a credit line facility availed to FCMB by Bank of Industry (BOI) so that FCMB can lend to her eligible SME customers.
To grow MSMEs sector by increasing their productivity and output.
Improve access to finance to SMEs through alternative source of funding.
Reduce the high financing costs for MSMEs of all sizes when sourcing for funds from commercial banks.
The major difference is that
In this BOI SME On-lending Facility, our customer applies directly through our bank but in our usual BOI facility, our customers apply directly to BOI and approaches us to provide guarantee.
Businesses in the following
Manufacturing Industry
Traders trading in locally produced goods (excluding petroleum products)
Solar energy financing
Food processing
Services with relevance to the manufacturing sector.
Other SME Clusters as you will find in the table below
S/N SME PRODUCT CLUSTER S/N SME PRODUCT CLUSTER
1. Adire (Tie and Dye)/Aso Oke
2. Animal Feeds
3. Aquaculture
4. Bakery
5. Blocks and Interlocking Stones
6. Bottled Water
7. Ceramics & Tiles
Physiotherapy)8. Chemicals and Paints
9. Cosmetics/Hair Products
10. Dairy
11. Digital Printing/Multimedia Publishing
12. Doors and Window Frames
13. E-Commerce/Information & Communications Technology (ICT)
14. Fashion/Garmenting
15. Fish Smoking/Drying
16. Food Processing (comprising processing of agricultural products)
18. Fruit Juice
19. Furniture/Wood Processing
20. Gemstones
21. Greenhouses
22. Laundry and Dry Cleaning
23. Leather/Footwear
24. Liquefied Petroleum Gas/Compressed Natural Gas
25. Meat Processing
26. Mechatronics
27. Health Care (Medical Diagnostics Laboratory/Orthodontist/Ophthalmology/
28. Movie Production (Nollywood)
29. Plastics
30. Quick Service Restaurants
31. Quarries
32. Recycling
33. Roofing Sheets
34. Soaps and Detergents
35. Solar (off grid)
36. Technical/Vocational Schools (Offering City & Guild Certificate) ONLY
38. Water Transportation
39. Light Manufacturing (Paper, Roofing Sheets, lube blending, Paints etc.)
40. Grocery packaging
Min amount is N5, 000,000 & Max amount is N50, 000,000 per single obligor.
Up to 60 months appraised on case by case basis.
Up to 24 months for distributive trade customers.
15% per annum (all charges/fees inclusive)
Loan shall be disbursed as
Term Loan
Working Capital (disbursed as term loan)
No overdraft allowed.
Yes, for
Long Term Loans – Up to 6 months commencing from the date of first disbursement for each project financed.
Working Capital – Up to 3 months commencing from the date of first disbursement.
Yes we do, we require acceptable security as defined in bank’s SME Credit Policy Manual.
Repayment shall be structured on a monthly and quarterly instalment
For Customers to be eligible for this loan,
Customers must have a minimum of 3 months banking relationship with FCMB before the application can be initiated.
Facility amount per transaction must not exceed the single obligor limit which is N50 million.
Satisfactory Credit report of the company & the directors.
Company must be duly registered with CAC
Company must comply with the provisions of Companies and Allied Matters Act (1990) such as filing of annual
Customer must be operating within the targeted sectors as defined in the target market section by BOI.
Yes, you can process the amendment of terms and amend to the BOI SME On-lending scheme code LA566.