SME Loans and advances

We have a range of suitable financing options to help your business grow

Get up to N500M loan and payback in 10 years at an interest rate of 9%p.a. in the UBA Creative Industry Finance.

If your business is ready to take a leap or you just need working capital to keep your business running, a loan could be a good option for you.

 

Young Entrepreneur Finance Scheme (YEF)

This product seeks to offer credit facilities to young entrepreneurs across Africa with vibrant and bankable business ideas and who require capital to finance and grow their small and medium scale businesses.

The product is targeted at young entrepreneurs from across Africa who are at least 18 years’ old and with workable or thriving business ideas that have strong potential for growth.

– Maximum limit of $50,000 (N15,250,000 naira equivalent)
– Maximum limit of $5,000 (N1,525,000 naira equivalent)
– Maximum Tenor of 7 years with a 6-month moratorium for start-up businesses

What is YEF?
ANS: Young Entrepreneur Finance Scheme is an initiative of the bank to offer credit facilities specifically to young entrepreneurs across Africa with vibrant business ideas and who would require finance to grow their small and medium scale businesses.

– Which are the qualified sectors for this loan?
ANS: All business sectors of young entrepreneurs with workable or thriving businesses ideas for strong potential growth except Real estate, Tobacco, Alcohol and Weapons.

– How much can be access from this scheme?
ANS: A maximum of N15,250,000 and a minimum of N1,525,000

– How Loan do I have to payback a loan amount?
ANS: Maximum of 7years but startup businesses will be allowed a 6 months moratorium period.

– Must I have an account domiciled with UBA before I can access the loan?
ANS: Applicant business must have been a customer for at least 1 month supported with 3 months’ account statement from former bank.

– How will repayment take place?
ANS: Repayment will be made from beneficiary business proceeds irrevocably domiciled to UBA.

– What is the interest rate?
ANS: Interest rate is competitive and at an affordable rate.

– How do I apply for the YEF loan?
ANS: You can apply for the young Entrepreneur Finance loan www.ubagroup.com/smeloans Click on YEFS and follow the prompts.

– Can I use a savings account to register for the loan?
ANS: Customer must be using a current account with his/her business name.

– Does this loan require collaterals?
ANS: Personal guarantee of the MD/CEO & Chairman of the company supported with Notarized Statement of Net worth.

Comprehensive Insurance cover on the property with the Bank noted as the first loss payee

– Can a startup apply for this loan?
ANS: Business can be a startup or development project

– How do I change the password to my application portal?
ANS: You can reset password by clicking on the ‘forgot password menu’.

UBA School Loans

This is a medium to long term facility aimed at meeting working capital, asset and mortgage needs of registered privately–owned schools. The bouquet comprises of a 4-month time loan, a 3-year asset finance loan and a 10-year mortgage loan.

FacilityTenorAmount
Short-term loanUpto 12monthsAccess up to N5 million
Asset Finance LoanUp to 3-yearAccess up to N20 million
Term Loan (Renovate or Buy)Upto 5-yearsAccess up to N100 million
  • ✔ Access to fund to meet operational, expansion, asset procurement needs with a moderate RAC
  • ✔ Easier access to funds to finance various school projects
  • ✔ Enhances further growth to the school.
  • ✔ Evidence of registration with regulatory bodies
  • ✔ Letter of undertaking by the business owner to domicile all business proceed over the facility tenor Payment mandate
  • ✔ Applicant’s letter of request written application /facility request
  • ✔ Duly completed KYC form.

– How do I apply for the school loan? 
ANS: Firstly, you can visit the MSME Banking page on UBA’s website or visit any of our branches for information on the documentation, and eligibility criteria for UBA school loan. You can then apply by making available all necessary required documentation at any of our branches closest to you.

– What will my monthly repayment plan be?
ANS: you can check your monthly repayment WITH YOUR RELATIONSHIP MANAGER

– Must I have a UBA account before assessing this loan?
ANS: Yes, you must have been a customer with us for at least 3 months.

– When are the loans in the bouquet available to schools?
ANS: UBA School loans are available all year round.

– Who do I submit the required documentation to?
ANS: Visit any UBA branch nearest to you and ask for the customer service or relationship manager (RM).

– Will the school be required to use its property as collateral for this loan?
ANS: No, collateral is domiciling school fees account with the bank.

– Can a school access this facility for school construction and renovating?
ANS: UBA school loan bouquet provides you with different school loans that allows for renovating existing and buying new properties. It does not cover construction of new building.

– what amount can a school access through this facility?
ANS: A maximum of N5 million, 20million and 100million for SHORT TERM LOAN, ASSET FINANCE AND TERM LOAN respectively.

– How long will it take for the loan request to be granted?
ANS: As soon as the loan application has been submitted and all due diligence undertaken.

Visit our branch for more information  OR Call: +234 700 2255 822 (0700-CALL-UBA) OR  +234 1 280 8822 (2808UBA) OR  +234 1 631 9822

 

 

Temporary Overdraft

Get a 30day offer to cover up shortfalls in your working capital. UBA Temporary overdraft offers a 30day one off overdraft facility to commercial and consumer banking customers against proven account activity to meet temporary shortfalls in their working capital requirements

  • ✔ Obligor limit: Micro branch- 300,000
    • Micro Plus Branches: N500,000
    • Basic Branches: N2,000,000
    • Medium Branches: N2,000,000
    • Large Branches: N4,000,000
    • Mega/ Prestige Branches: N4,000,000
  • ✔ Repayment is on a flow basis in line with obligor’s business cycle.
  • ✔ Tenor is 30days from the date of booking.
  • ✔ Collateral: An undertaking to domicile sales proceeds with UBA.
  • ✔ Ease of access to funds to bridge shortfalls in working capital
  • ✔ Duly completed loan application form(LAF) by authorized personnel of the obligor.
  • ✔ Duly executed offer letter by authorized personnel of the obligor.
  • ✔ Domiciliation of sales proceeds or assignment of receivables.
  • ✔ Personal Guarantee of the Director(s)/Proprietor supported with a notarized statement of net worth.
  • ✔ Evidence of up-to-date rendition of annual returns where the company is incorporated;
  • ✔ Evidence of usage of one of the bank’s e-channel products such as ATM, U-Direct, POS, etc

For more info call: +234 700 2255 822 (0700-CALL-UBA) OR +234 1 280 8822 (2808UBA) OR +234 1 631 9822

AGSMEIS (Available only in Nigeria)

Do you own a business or want to start one? Agribusiness small and medium enterprises investment has been designed specifically by the federal government to promotes agricultural businesses of micro, small, medium enterprises(MSME).

AGSMEIS is a federal government intervention funding scheme through CBN that promotes Agric businesses as a vehicle for sustainable economic development and employment generation.

  • ✔ Loan limit: N10Million(maximum)
  • ✔ Interest Rate: 5% per annum
  • ✔ Tenor: 7 years.
  • ✔ Moratorium: Maximum of 18 months on Principal and 6 months on Interest
  • ✔ Agricultural sector.
  • ✔Real sector including Manufacturing, mining, and petrochemicals.
  • ✔ Service sector including Information and Communication (ICT) and the Creative Industry.
  • ✔ Other businesses as determined by the Central Bank of Nigeria (CBN).
  • ✔ Duly completed application form.
  • ✔ Bank Verification Number (BVN).
  • ✔ Certificate of Training from recognized Entrepreneurship Development Institution (EDI) or evidence of membership of organized private sector
  • ✔ Letter of Introduction from any of the following, Clergy, Village Head, District Head, Traditional Ruler, senior civil servant, etc. (for individuals/ micro enterprises only).
  • ✔ Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).
  • ✔ Tax Identification Number (TIN) and current Tax Clearance Certificate TCC) where applicable.
  • ✔ To qualify to access this fund, you need to have been trained by an Enterprise Development Institute after which you will fill the form. They will submit your form to CBN.
  • ✔ CBN will ask banks to verify your account details and then CBN proceeds to conduct its own assessment.
  • ✔ Email: cfc@ubagroup.com. : +234 700 2255 822 (0700-CALL-UBA) or +234 1 280 8822 (2808UBA) or +234 1 631 9822

What is AGSMEIS?
AGSMEIS means Agri-Business Small and Medium Enterprise Investment Scheme is a loan of 5% per annum implemented by the central bank of Nigeria through UBA as a disbursing bank for empowering potential entrepreneurs with the necessary equipment and working capital to kick start their businesses.

What are CBN EDIs?
Central Bank of Nigeria Entrepreneurship Development Institutions are public and private institutions approved by the Central Bank of Nigeria to carry out vocational and entrepreneurship training for Entrepreneurs and SMEs

Who can apply for AGSMEIS?
All Micro, Small and Medium Enterprises in the Agriculture sector, Education, Manufacturing, Service sector, including Information and Communication (ICT) and the Creative Industry

Must I be a UBA customer before I can access this loan?
Yes. UBA will be the disbursement bank for your loan amount since it is paramount you have an account with the bank.

Must I have to be certified by an Entrepreneurial development institute before I am qualified to access this loan?
YES. To be qualified to assess this loan you need to be trained and certified by any of CBN approved Entrepreneurial Development Centers closest to you. Accredited EDIs are all over the nation.

Do I need collateral for this loan?

In an instance of asset acquisition; the asset acquired becomes the collateral and must be registered with National Collateral Registry(NCR).
For Working Capital Loan of N500,000 and below; the collateral is Personal Guarantee of the borrower.
If the working capital is above N500k, the obligor will submit a receipt of assets previously purchased, to cover the balance of the exposure

Who do I submit my application form to?
Only eligible entrepreneurs that have been trained and certified will submit their application forms to the EDIs indicating United Bank for Africa as the disbursing bank for onward submission to CBN.

If I am already in business, do I need to be certified by the entrepreneurial institutes to be qualified to access this loan?

One of the eligibility criteria is to be certified by a CBN approved Entrepreneurial development institutes.

how do I know where and who the Entrepreneurial development institutes are?

You can get this information from our SME page on our website or visit the closest branch to you, to inquire of an EDI closest to you.

 

 

Development Bank of Nigeria (Available only in Nigeria)

A Federal Government loan tailored to develop and support local entrepreneurs and empowering business owner. The Development Bank Of Nigeria Loan is a term funding and risk sharing facilities to offer support and empowerment to Micro, Small, and Medium Enterprise owners to drive developmental projects and economic growth.

  • ✔ Term loan ( MSME): 153Million, Small corporate; 610Millon
  • ✔ Working Capital (MSME): 61Million, Small corporate; 244Million
  • ✔ Agriculture
  • ✔ Manufacturing
  • ✔ Building and construction
  • ✔ Transportation
  • ✔ Mining
  • ✔Wholesale and retail
  • ✔ Information and communication
  • ✔ SME access to developmental funds.
  • ✔Creation of employment
  • ✔ Increase in SME productivity and output.
  • ✔ Business must be fully registered with CAC.
  • ✔ Evidence of business registration, business address, BVN of ownership
  • ✔ Must be in business for a minimum of 24months.
  • ✔ Business account must be domicile with UBA.
  • ✔ Business office must be established. (preferably owned or lease)
WHAT is the definition of an MSME?
MSMEs are classified into Micro, Small and Medium Sized Businesses based on asset size, sales volume and number of employees, as defined by The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

Must I have an account with UBA before been qualified for DBN
Yes, a customer must maintain an account with UBA.

How many years do I have to pay back the loan?
The tenor of the loan is dependent on the nature of your business and the reason for collecting the loan. You may have up to 18 months moratorium on principal repayment for working capital & investment projects, and up to 10 years to repay the loan.

What is the interest rate?
DBN loan offers flexible interest rates that are based on tenor and referenced to market rates

Creative Industry Finance

The Creative Sector Finance is in partnership with the Central Bank of Nigeria to improve access to long-term and low-interest financing to entrepreneurs and investors in the Nigerian creative and information technology (IT) sub-sectors. It is particularly focused on these businesses: Fashion, Information Technology, Movie Production, Movie Distribution, Music and Software Engineering Student Loan (for software development).

  • ✔ N3 million for Software Engineering Student with 9 months’ moratorium
  • ✔ N30 million for Movie Production business
  • ✔ N500 million for Movie Distribution business
  • ✔ Cover your rental/service fees for Fashion and Information Technology business
  • ✔ Cover your training fees, equipment fees, and rental/service fees for the Music business
  • ✔ A maximum of three years with a moratorium of 9 months for Software Engineering Student Loan
  • ✔ A maximum of ten years with a moratorium of 24 months for Movie Production and Distribution
  • ✔ A maximum of ten years with a moratorium of 24 months for Fashion, Information Technology (IT) and Music

 

What we will need from you

Structure
Software Engineering Student Loans (for software development)
Movie Production
Movie Distribution
Ownership
• Must gain admission into a training organisation that has job placement contracts
• No bad credit history with CRMS or any commercial banks in Nigeria
• Preference for areas with low penetration
• Minimum of three (3) years relevant experience
• No bad credit history with CRMS or any commercial banks in Nigeria
• Preference for areas with low cinema penetration
• Minimum of three (3) years relevant experience
• No bad credit history with CRMS or any commercial banks in Nigeria
• Preference for areas with low cinema penetration
Collateral
• University degree certificate
• NYSC certificate
• Credible Guarantor
• Personal Guarantee
• Legal mortgage
• All asset debenture
• Credible Guarantor
• Personal Guarantee
• Legal mortgage
• All asset debenture
• Personal Guarantee
Minimum Equity Contribution
0%
30%
30%

For Music, IT and Fashion

Structure
Music
IT
Fashion
Ownership
• At least three (3) major sponsors from minimum of three (3) different geo-political zones of Nigeria
• Minimum of three (3) years relevant experience
• No bad credit history with CRMS or any commercial banks in Nigeria
• At least three (3) major sponsors from minimum of three (3) different geo-political zones of Nigeria
• Minimum of three (3) years relevant experience
• No bad credit history with CRMS or any commercial banks in Nigeria
• At least three (3) major sponsors from minimum of three (3) different geopolitical zones of Nigeria
• Minimum of three (3) years relevant experience
• No bad credit history with CRMS or any commercial banks in Nigeria
Tenure
10 years
10 years
10 years
Monetization
• Training fees
• Equipment rentals
• Rental/service fees
Rental/service fees
Rental/service fees
Moratorium
36 months
36 months
36 months
Collateral
• Mortgage debenture
• Legal mortgage
• Mortgage debenture
• Legal mortgage
• Mortgage debenture
• Legal mortgage
Minimum Equity Contribution
20%
20%
20%

 

Invoice Discounting Facility (IDF)

Need a quick discount for unpaid invoices? UBA IDF has got you covered.  This enables the bank discount invoice from 3rd parties.

  • ✔ Obligor limit: US$200,000 maximum subject to 70% of the net invoice value.
  • ✔ Tenor: 120 days
  • ✔ Repayment: Bullet repayment on or before expiry from the proceeds of the invoice.
  • ✔ Target Market: Approved investment grade names (BBB to AAA)

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