BOI announces N1bn fund for fashion entrepreneurs

The Bank of Industry says it has set aside N1 billion to support fashion entrepreneurs.

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 1% appraisal fee, 1% commitment fee, 0.125% monitoring fee, and a 9% 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.

Collateral/Support: Deposit of 5% 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 3 to 1.

Funding: BoI Term Loan/CBN MSMEDF – 75%

Structure: Equity – 25%