Fashion & Beauty

Target Market

Limited Liability Companies, Enterprises and Cooperatives (Clusters) in the following segments of the fashion & beauty value chains: Adire (Tie & Dye) & Aso-Oke, Clothing (design and production), Fashion/Beauty Training Institutes, Leatherworks, Distribution (local Label retailing), Beauty salons (Hair, Skin, Face or make up, feminine cleaning etc)

Purpose

Acquisition of items of equipment and provision of working capital

Eligibility Criteria

• All businesses must be registered with at least one relevant trade association
• The Cooperative (Cluster) must have registered for at least two (2) years prior to loan application

Pricing

9% p.a. interest Rate; 1% Processing Fee one off charge

Single Obligor Limit

Both Term Loan & Working Capital should not exceed the upper limits of the following categories: •
• Micro Enterprises – ₦10.0 million maximum
• Small Enterprises – ₦50.0 million maximum
• Medium Enterprises – ₦200.0 million maximum

Tenor

Term Loan: 3 – 5 years; Working Capital: Up to 3 years

Moratorium

Up to 12 months (from date of loan disbursement

 

Fashion & Beauty Product Security Requirements

Loan Amount Up to ₦10 million (Cooperative Societies)

1. Joint and several guarantees of the beneficiary members of the Cooperative society” Cross guarantee of members of cooperative (cluster) Society
2. Personal guarantees of the President and Secretary of the Cooperative Society.
3. Two (2) external guarantors acceptable to BOI
4. 10% of the security deposit
5. Lien over the stock of trade (present and future)
6. Asset debenture on Equipment finance.

 

Loan Amount Up to ₦10 million (Enterprises/Limited Liability Companies)

1. Asset debenture over the equipment financed.
2. Irrevocable Personal Guarantee of the Chief Promoter of the company (For Limited Liability Companies).
3. Two (2) external guarantors acceptable to BOI who must belong to any of the following categories:
4. Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.
5. Bankers (not below the level of (Assistant Manager) and must have been confirmed by current employer.
6. Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers).

1. Other external guarantors including industry players that are acceptable to BOI with reasonably sizeable net worth in comparison to the loan amount

The guarantees must be supported with Notarised Statement of Net worth acceptable to BOI.

 

Loan Amount >₦10 million ≤ ₦200 million (Enterprises/ Limited Liability Companies)

1. Legal mortgage on pledged property, or
2. Bank Guarantee from Commercial Banks acceptable to BOI.
3. Irrevocable Personal Guarantee of the Chief Promoter of the company, or

All assets debenture