BOI to support fashion entrepreneurs N1bn fund

The Bank of Industry (BoI) has set aside N1 billion to support fashion entrepreneurs in Nigeria.

This is contained in a notice posted on the bank’s website and it emphasised that only companies owned/promoted by Nigerians, and specifically, limited liability companies will be considered.

According to the bank, interested parties must be involved in the production and marketing of fashion items like clothes, handbags, shoes, jewellery and other fashion accessories.

The bank also said it will support ‘initiatives that can improve financial literacy and industrial entrepreneurship development for players in the fashion industry’.

According to the information, the maximum amount that a person can receive is N30 million and interested parties are required to pay one per cent appraisal fee, one per cent commitment fee, 0.125 per cent monitoring fee, and 9 per cent per annum, payable at the end of every month.

The loan tenure is five years and it is payable from a maximum period of 12 months from the date of loan disbursement.

Other conditions BOI listed are: Security arrangement: Lien on stock of trade and items of equipment.

For Collateral/Support, you are expected to deposit 5 per cent of the loan amount in an interest yielding joint account opened by the company with a designated bank with BoI as a sole signatory, notarised statement of net worth of two guarantors, and strong and reliable monthly net cash flows that can support monthly loan repayment at ratio three to one.