SMEDAN is an initiative of the Nigerian government. It gives financial support to Small and Medium Enterprises. In this article, you will find out all you need to know about SMEDAN, including how to obtain a SMEDAN loan to fund your business.
What is SMEDAN?
Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is an initiative of the Nigerian government established in 2003 in accordance with the SMEDAN Act. The development of MSMEs became a national priority, thereby, enabling growing businesses within the country, and boosting the economy of the nation at large.
What are SMEDAN’s Responsibilities?
The platform is for:
- Monitoring and regulating the activities and development of MSMEs in the nation
- Creating favourable policies for the development of SMEs
- Creating development opportunities and programs, offering support services, and provision of developmental instruments to aid the growth of MSMEs
- Developing and promoting the operations of MSMEs in the nation.
SMEDAN loans are available to only selected states within the country which are: Abuja, Lagos, and Kaduna. Although, applicants from other states can still apply under the ‘all states’ options. Once you click on it, if your state is approved you can proceed with the loan application.
SMEDAN offers no fixed interest rates as the loans are provided by different organizations. Nonetheless, SMEDAN ensures that low-interest rates are being charged by the lenders.
Age range: between 18-60 years
Interest rate: between 0%-35%
Loan location: Abuja, Lagos, Kaduna, All
SMEDAN Loan Types
Personal loan; to assist individuals to meet pressing personal demands or targets in due time. The interest rates on personal loans are low and may require no asset security.
Business loans; to help businesses meet immediate business financial demands. You can apply for this type of loan either as a principal owner or as a group at a low-interest rate.
Credit card loans; to help user access quick cash during emergencies or urgent matters
Mortgage loans; to assist individuals or business owners acquire a new property.
HOW TO GET A SMEDAN LOAN
- Go to the SMEDAN portal
- From the loan options provided, select the type of loan you want
- Register/ create a profile by providing correct answers to the questions asked during the registration
- Once duly registered, click on the ‘check availability’ button to see the loan options available to you based on your given information
- The provided result would indicate the different loan options with their requirements and interest rates.
- Click on the ‘view details and apply’ button which would direct you to the ‘Get started’ button, click on it and begin your application properly.
SMEDAN Loan Providers
The loan providers are nationally recognized financial institutions and government-funded agencies. The loan amounts, tenure, and interest rates differ according to the different loan providers.
Loan details of one of the SMEDAN loan providers.
Loan provider: Nemzit MFB Ltd
Loan amount: N100,000 (minimum) and N2,000,000 (maximum)
Loan type: business loan
Interest rate: 4% monthly
Loan tenure: 4 months with a monthly or weekly repayment plan
Requirement: Any recognized national ID and your business plan