The Bank of Industry (BoI) says it has set aside N1 billion to support fashion entrepreneurs in Nigeria. 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 a notice posted on the bank’s website, only companies owned/promoted by Nigerians, and specifically, limited liability companies will be considered.
The maximum amount that a person can receive is N30 million. Interested parties are required to pay one percent appraisal fee, one percent commitment fee, 0.125 percent monitoring fee, and 9 percent 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 listed are: Security arrangement: Lien on stock of trade and items of equipment. For Collateral/Support, you are expected to deposit 5 percent 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.