Bank Of Industry (BOI) – Microfinance Bank Loan Requirement And Interest Rate In Nigeria


What is the bank of industry interest rate today? The Bank of Industry was founded in 2002 by the Olusegun Obasanjo led administration, and it was established with an authorized share capital of about $400 million, with the Ministry of Finance and the Central Bank of Nigeria, as the major shareholders at creation.

The Bank of Industry was formed from the union of the Nigerian Bank of Commerce and Industry (NBCI), National Economic Reconstruction Fund (NERFUND), and the Nigerian Industrial Development Bank (NIDB).

The sole aim of establishing this bank was to encourage small and medium scale industries in the country.

In this post, will let you in on all you need to know about the Bank of Industry regarding its functions, loans & interests, and how to apply.


The Bank of Industry performs the following functions:

Targets the Industrial Sector of the Nation’s Economy

One of the major reasons why the Bank of Industry was established was to encourage the growth of industrial activities and production in the nation. The aim of the Bank of Industry is to ensure financial support and other business support services are provided to the industrial sector to encourage and generate more production and growth in the nation.

The sub-sectors of interest include Oil and Gas, Manufacturing, Agricultural and Agro-allied, Solid Minerals, and other businesses that use equipment in their business operation, and which fall within the confines of the industrial sector.

Provides Finance for Plant and Equipment

The Bank of Industry primarily provides financial assistance towards plant and equipment for industrial activities. The Bank of Industry does not make financial provisions for raw materials, land property, business working capital, etc.

For instance, if you are into primary agriculture where you would require equipment such as tractors, combine harvesters, freezers, dryers, etc, the bank would only make financial provisions for the equipment and nothing else.

Disburses Funds to various Vendors and Suppliers of Required Equipment

The Bank of Industry makes sure to disburse the required loan to the vendors or suppliers of the needed equipment. The loan does not go the borrower. The bank ensures that necessary protocol and diligence is given to make sure the quotation from the vendor is thoroughly scrutinized to ensure it is really genuine.

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Also, the Bank of Industry will not go for the least affordable price for a particular type of equipment, but will make sure that the price quoted by the vendor for that particular equipment is found to be reasonable for its type, and guarantees value for money.

In cases where it is possible, the Bank of Industry will encourage a borrower to enquire about getting equipment from reliable local producers. This is to ensure that extra cost is not incurred due to exchange rates when sourcing for spare parts and maintenance.

Provides Assistance to Borrowers towards Sourcing for Capital through its Partners

It is not in the place of the Bank of Industry to provide financial assistance to borrowers in terms of working capital. However, the Bank of Industry has connections with other participating banks with which they can negotiate SME friendly financing terms with.

A borrower who seeks for loan from the Bank of Industry can apply for equipment finance and at the same time, apply to the Bank of Industry for connection with any of the participating banks.

Also, the Bank of Industry could extend loans to new start-ups as long as the borrower meets the criterion of being in business for a minimum of three years, with good sales and profit margin records.

The bank of industry could as well lend loans to new start-ups in a case where the borrower may have not been in business for long, but has good experience in his line of business. In this case, the borrower would have to provide a solid proof of cognate experience in his particular line of business.

Also, the business structure too must comprise qualified individuals possessing good experience.


The Bank of Industry is not as profit-making oriented as many commercial banks; it is keenly interested in the success of your business venture. It is not so much about providing you with the loans and expecting the interests promptly, but about making sure it fulfils its role of nation building. The Bank of Industry also has Business Development Support Providers that assist you in every part of your business to ensure you are making real success.

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The interest rates differ for both SMEs and Cooperatives. For SMEs, there is no limit to the maximum amount that can be accessed. The interest rate is 10% monthly. For Cooperatives, the maximum amount that can be accessed is N10 million without collateral, rather, with a deposit of 10% of the amount to be collected.

Just like any other bank, the Bank of Industry will require from a borrower, collateral of good value. However the Bank of Industry does not require exclusively landed property. It is quite flexible with its collateral demand. We are well aware of the difficulty that is involved with getting certificate of occupancy in many parts of the country.

Aside accepting landed property as collateral, the bank could also accept other forms of security such as Bank Guarantee; advance payment; guarantees performance bonds from any accredited insurance company. Obtaining loans from the Bank of Industry is not something you should dread like obtaining loans from other commercial banks.


It would also interest you to know that the Bank of Industry has an online portal where you could apply for loans without necessarily physically visiting the bank. This is how you can use the portal:

  • Log on to the website on
  • Click on the “Apply for loan now”
  • Next, click on “Register here” to start your account registration.
  • A verification link and a tracking code will be sent to your registered email account. You must click on the verification code to enable you to log in.
  • After you have successfully logged in, you can quickly complete the form by clicking on the application form to save.
  • Click on “continue” to submit the form. After which, you will be sent a confirmatory mail.
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You must know that the bank of industry does not re-finance plant and equipment that have been financed from other sources. Once you have applied for and submit a loan application, it would require a minimum of fourteen (14) days, but not more than twenty-eight (28) days to become approved.


Bank of Industry (BOI) Limited provides credit and loan support for the establishment, expansion, mechanization and diversification of small scale, medium scale and large scale industries in Nigeria.

SEE: How To Get Agric Loan in Nigeria: Ways Farmers Access Agricultural Loans

Apart from these, the Nigerian bank also gives advisory services. Bank Of industry (BOI) was formerly referred to as Nigerian Industrial Development Bank Limited before its name was changed in October 2001.

READ: Where And How To Get Loans To Start Business

Incorporated in 1964, with its headquarters in Lagos, Nigeria, Bank of Industry Limited functions as a subsidiary of Ministry of Finance Incorporated.


Getting capital to start up a business from most banks in Nigeria can be very difficult considering the numerous conditions and requirements attached to such loans. This has necessitated an agreement between Bank Of industry and commercial banks. BOI gives long term loans to set up the investment while the commercial banks provides funds to run the business.

I have tried to list some requirements you must have to access BOI loans:

==> Collateral worth minimum 150 percent of loan
==> feasibility study/business plan of the business you want to start

SEE: Free Samples Of Business Plan Template

==> You must have a registered business name or cooperative to benefit from any bank of industry Nigeria small scale loan
==> Visit any branch of BOI and inquire for more details to acquire loans

How To Access Loan From Bank of Industry (BOI)

==> collect forms from BOI
==> complete the Questionnaire
==> submit your application forms
==> download, fill and submit other forms
bank-of-industry-boi- bank-of-industry-boi- bank of industry boi in Nigeria”
Click HERE to contact Bank Of Industry.
Click HERE to download application forms from Bank Of Industry

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