By Emeka Anaeto
LAST week we outlined some important pre-requisites one has to bear in mind before approaching the Bank of Industry, BoI, for loans which included the collateral requirements, as well as evidence of on-going business successes, where, under its general risk acceptance criteria, BoI requires a prospective borrower to have at least three years acceptable performance track record.
This means your business ought to be up and running for at least three years with clear evidence to that effect. But I also noted that a waiver on this may be granted on a case-by-case basis.
In this last lap of basic information series on getting loans from the BoI, I focus on the documents required by the bank for loan applicants. But, first, note that this would be addressed in two sub-sets, viz, micro credit and SME credit.
When I began this series on BoI four weeks ago a differentiation was made between the two sub-sets where BoI focuses on SME Credit of N5 million and above while it uses third party – MicroFinance Banks, to execute its micro credit scheme for borrowings below N5 million.
Some of the required documentation for micro credit category includes: Formal Letter of Application introducing your company, the nature of business, request for loans and stating the loan amount and purpose. The letter should be in your company letterhead.
Other documents accompanying the letter include: Photocopy of Certificate of Registration of your business; A Business Plan; Four passport photographs of the Promoter (business owner); Photocopy of the Current Tax Clearance Certificate of the Business Enterprise and the Promoter; and Photocopy of International Passport or Driver’s License or National Identity Card of the Promoter.
You should also include in your documents the Bank Statement of the Business Enterprise for covering a period of one year (for existing business); Sales record for six months and operating expenses; Evidence of availability of Collateral Security (e.g. landed property, Individual Guarantor, etc.).