Smedan Boa Loan Review – Is Smedan Boa Loan Scam or Legit
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), was created to promote the development of smaller businesses across the country. SMEDAN was established in 2003 — following the “SMEDAN Act”.
A well-developed MSME sector — is seen as a way of combating poverty and is the key to Nigeria’s prosperity. Accordingly, in its role as the “champion” for small businesses, SMEDAN can be considered as an important driver of the Nigerian economy.
Depending on the type of business you have, you may also need to register with the Standards Organization of Nigeria (SON) and the National Agency for Food and Drug Administration and Control (NAFDAC).
A business plan would also need to be produced — detailing how and what you will use the money for.
SMEDAN collaborates with a number of partner institutions like the Bank of Agriculture (BOA) and the Bank of Industry (BOI).
SMEDAN fulfills its role in facilitating the development of small businesses — through its headquarters in Abuja, and numerous other offices spread throughout the country.
SMEDAN is mandated to:
Generally, SMEDAN does not directly provide loans to businesses. Instead, SMEDAN acts as a middle man — connecting eligible MSMEs with suitable loan providers.
There are programs where SMEDAN partners with other government agencies, such as the BOI and the Central Bank of Nigeria (CBN), in providing credit to small businesses. Having said this, SMEDAN primarily sticks to entrepreneurship training and business development, with the disbursement of loans — being handled by other institutions e.g. BOA, BOI, CBN etc.
As well as loans from the public sector, SMEDAN can also assist small businesses in accessing credit from the private sector. For example — commercial banks, finance houses and microfinance banks.
All MSMEs are eligible to get a loan, via one of SMEDAN’s many initiatives. Usually, the main requirement is that you have a registered business. Nonetheless, unregistered businesses can still apply — getting registered at a later stage.
If applying for a loan from a commercial bank, in addition to needing to be a registered business, the bank will have its own lending criteria. SMEDAN can help make you aware, of the main lending requirements — of most commercial banks.
There are two ways to apply for a loan through SMEDAN. Firstly, you can apply to one of SMEDAN’s training programs. Secondly, you can use SMEDAN’s credit information portal — before going on to directly apply for a commercial bank loan.
Upon satisfactory completion of a course — some programs involve you either getting a conditional grant, to start or expand your business, or you being given a soft loan. These soft loans normally come with lower interest rates attached, and will often require no collateral.
Regardless of if you are given a grant or loan — you would usually be required to either already have a registered business, or be encouraged to register (as part of the program). The Corporate Affairs Commission (CAC), is in charge of registering businesses in Nigeria.
A checklist of what is required, before a loan through SMEDAN (or a commercial bank) is approved — could include:
In order to get a loan, you can apply or register to be part of one of several SMEDAN sponsored initiatives. These programs typically involve, you being trained on one or more aspects of business.
Registration can involve visiting a SMEDAN office near you. There you would complete an application form, and may subsequently be invited to a course or training program. SMEDAN also has a new MSME registration portal, where you can register online.
SMEDAN has a Credit Information Portal — that can be useful for those wanting to apply for a commercial bank loan. Essentially, this portal is a database of credit facilities — that are potentially available to MSMEs in Nigeria.
On this portal, you can find basic information about lenders, how much you can borrow, loan repayment periods and interest rates.
As well as a business loan, there are 3 other credit options — personal loans, mortgage loans and credit cards.
The portal has a search function, where you are matched to appropriate lenders — based on the details you provide. However, with this online platform, you cannot instantly apply to a lender. Instead, you will need to apply directly — with the financial institution in question.
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