The Development Bank of Nigeria (DBN) provides financing support to Micro, Small and Medium Enterprises (MSMEs) through participating financial institutions (PFIs), including commercial banks, microfinance banks and other approved lenders.
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The facility is designed to improve access to finance for start-ups and existing businesses involved in productive enterprises. According to DBN, eligible businesses must be customers of a participating financial institution. This means applicants do not apply directly to DBN or receive the loan straight from the development bank.
DBN provides funding and risk-sharing guarantees to PFIs, which assess businesses and lend to qualifying customers. The bank says the loan can support business financing needs, while repayment terms depend on the nature of the business and the purpose of the facility.
One major feature is the repayment period. Eligible borrowers may have up to 10 years to repay, with a moratorium of up to 18 months on principal repayment. The moratorium allows borrowers to defer payment of the principal for an agreed period; it does not mean the loan is free or that interest is automatically waived.
DBN says interest rates are flexible, based on the loan tenure and referenced to market rates. Therefore, the actual rate, loan amount, fees, security requirements and other conditions should be confirmed with the participating bank before accepting an offer.
The programme is available to micro, small and medium-sized businesses across productive sectors. However, meeting the broad MSME description does not automatically guarantee approval. The financial institution will review the applicant’s business, repayment capacity and intended use of the funds before deciding whether to submit the request to DBN.
Businesses should borrow only after understanding their obligations and expected cash flow.
How to apply
Interested business owners should visit their commercial bank, microfinance bank, Development Finance Institution (DFI) or another DBN participating financial institution and state that they want to apply for a DBN-backed loan.
The institution will assess the business and proposed loan purpose. If its assessment is favourable, it will submit a funding request to DBN. If DBN approves the request, it provides the funds to the institution, which then lends to the business.
Applicants should ask their bank about eligibility, required documents, available loan amounts, interest rates and repayment conditions. They can also check the official DBN website at www.devbankng.com for participating institutions and further information.
