How To Apply For Bank Of Industry Loan And Get it + Everything else

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The Bank of Industry (BOI) is a leading financial institution in Nigeria. Since its establishment, it has supported small, medium and large businesses through the provision of loan and grants. It was initially known as Nigeria Industrial Development Bank (NIDB). It provides financial aids and loans not just for Formation and Initiation of a company alone but also enlargement and diversification of already existing businesses. These businesses may be small, medium or large-scale businesses. BOI especially focuses its loan services to businesses that are into production or processing of goods. In this article, we will be showing you everything you need to know about the BOI and how to apply for a bank of industry loan and get it.

How To Apply For Bank Of Industry Loan

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If you are a struggling business owner in need of a loan to get your business back on its feet or you are an established entrepreneur desiring to expand your business, you may have heard of the Bank of Industry, and wondered if they could provide the assistance you need. Well in this article, we will be looking at how to apply for and get a Bank of Industry loan.


As has been noted, the BOI has a special preference towards production and processing companies. In addition to this, there are other important facts to know before applying for BOI loans. Let us take a look at them.

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Important facts about BOI loans

Range (Who does the BOI Targets)

The BOI especially targets industries that are in the production and processing sector. These includes Solid Minerals, Oil and Gas, Agro Processing, Information and Creative Sector. However, there are a lot of specific businesses that fall under these sectors. When applications for loans are reviewed, businesses that are in these areas are usually given precedence.

What Can BOI Finances Be Used For

You might be wondering what you can use the Bank Of industry finances to start? The funds given out as Loans are not for business needs such land, lease, payment of staff etc. Rather they are given specifically for industrial machinery and facilities for processing or manufacturing. They cannot be used for general expenses in the Industry. Therefore, the need of your startup business or expansion project should be Industrial equipment or machinery.


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How is bank of industry (BOI) Fund Disbursed?

In line with the above point, it is necessary to note that BOI loans are not given to the business owner directly, but rather it is given to those who sell the equipment specified by the business owner. So more or less, it is as though the equipment is purchased from the vendor for the industry or business.

Who does the Bank of Industry (BOI) Funds?

The Bank of Industry doesn’t fund individuals. Rather, it provides funding for registered companies. Hence to qualify for funding, the company must be duly registered as a Limited Liability Company with the Cooperate Affairs Commission. Furthermore, in order to apply and get the Bank of Industry loan, one must provide the evidence of this.

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How much can I get from the Bank of Industry (BOI).


BOI provides loans from 5 million naira and above. Through the BOP (Bottom of the Pyramid) scheme however smaller loans can be obtained. This loan scheme is financed by a collaboration between BOI and the various state governments and operates through Microfinance Banks.

 Do I need a Collateral to access the Bank of Industry BOI loan?

To secure BOI loan, a collateral or security proportionate to the loan being given is required. Simply put, a collateral is an asset that is offered as security to obtain a loan. If the loan cannot be repaid, the collateral is taken in place.

How To Apply For Bank Of Industry Loan and get it

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Does the Bank of Industry (BOI) fund New businesses?

As a rule, the BOI provides funds to already established businesses with at least 3 years of good performance. However, it may consider start-up businesses that shows promise and have capable leadership. There is no guarantee for this though as they would examine each case differently. Notwithstanding, with a startup business, it is possible to apply for and get the Bank of Industry loan.


What are the Necessary Documents needed to apply for the Bank of Industry (BOI) loan?

To apply for a BOI loan, depending on if it is s micro credit loan or for an SME/ Large enterprise, certain documents must be provided. You can find a list of these documents here.

 What are the pros and cons of applying for a Bank Of Industry loan?

Let’s look at some of these.

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  • Firstly, the BOI loan has a low interest rate. This is a huge advantage as it ensures that all your profit is not sunk in servicing interest on loans.
  •  Also, the BOI gives significant amount in loan. This can take your business to the next level unlike smaller loans which may not be sufficient to boost your business.
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  •  The loan is specifically for equipment and is not given to the business owner. Rather the money is given directly to the vendors to purchase equipment. This reduces flexibility and places the weight of other salient part of running the industry on the shoulders of the business owner.
  •  Furthermore, as you may have observed, the application process requires a lot of documentation. These documents must be provided and it can be tedious to procure all the needed documents.

How To Apply And Get BOI Loan.


There are two ways to apply for a loan from Bank of Industry. You could apply online or pick up a form at the branch office of the Bank Of Industry closest to you. Either way you, following these steps will be helpful.

  • Identify what you will need the loan for considering the points noted above.
  • Ensure that all required documents are in order. If your company is not registered it is imperative to do so before applying.
  • Depending on which method is more convenient, you may visit the website, fill in the necessary details, then click on submit. You may also choose to go to the branch office of the BOI, pick up a form, provide the necessary details and submit.
  • After application, you will receive a mail with your application tracking ID. With this if you can always login to CHECK the progress of your application.
  • You will need to wait for feedback and confirmation if your application has been accepted.


The BOI loan can be a great boost to your business hence it is important to critically go through this article again to ensure that the details necessary are considered. We have attempted to show you how to apply for and get the Bank of Industry loan. If your business qualifies for the loan and you possess the documentation necessary, do not hesitate to apply today.


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