Revealed: How Female Entrepreneurs Can Get Low-Interest Bank Loans In Nigeria

Are you a female entrepreneur in need of financial support to save your small and medium business from the onslaught of Coronavirus? if so, there are several unknown bank loan packages or opportunities at low-interest rates that have been designed specifically for female entrepreneurs that could help you mitigate the coming recession.

It's no longer if, but when Nigeria will slide into recession, and at a period like that, entrepreneurs need to be capital-ready to withstand the pressure of the economic fallout that could threaten the existence of their business - luckily for the female entrepreneurs, banks have loans created just for them.

If the Federal Government could owe about $27 billion as bilateral debt and reportedly refunding the loans with 96 kobo from every N1 it makes - according to Director of Centre for Infrastructure Policy Regulation and Advancement (CIPRA), Lagos Business School, Dr Bongo Adi - and still plans to borrow more to fund capital projects, then entrepreneurs need loans to help them sail through the storm and rejuvenate their businesses which have been on lockdown for months.

As an entrepreneur, you need loan packages or credit sources that are not looking to profit from you but grow your enterprise in a business environment that is typically hostile to small and medium businesses. That's why AllNews collated some women-oriented loan packages of banks that might be alien to many female entrepreneurs.

Businesses That Qualify For Female Entrepreneurship Loans

These loan packages for women in the business community cut across various sectors - especially the sectors highly populated by ladies - Creative Industry, which includes Fashion and Entertainment; Music, Movie Production, Cinema and Theatre as well as the Food Industry and Quick Service Restaurants (QSR).

Other sectors that are beneficiaries of the female entrepreneurship loan facility are Education; creche, primary & secondary schools, as well as Manufacturing, I.T and Healthcare sector; Hospitals, Retail Pharmacies and Diagnostic Centres.

However, as expected, female entrepreneurs interested in accessing the funds can only unlock the loan opportunity by being an account holder of Guaranty Trust (GT) Bank Plc, Access Bank Plc, Standard Chartered Plc and First Bank Holding Plc.

The Bank Loans Available For Female Entrepreneurs

Access Bank: This lender has several loan packages for female entrepreneurs in Nigeria, ranging from Womenpreneur Pitch-A-Ton, Women Power loans and the W Initiative. Access Bank is providing finance for women through this initiative to serve as a catalyst for growth and close the gap in gender financing.

The W Power Loan comes with a 15% interest per annum. The loan is available for women to grow their business. According to a statement on Access Bank's website, Loans are granted in two broad areas:

Term Loan: Meant for asset acquisition and infrastructure upgrades, use this loan to buy machinery, equipment and all other fixed assets needed for your business. The second being, Working Capital: Use this loan to purchase raw materials or settle other daily operating expenses of the business.

AllNews learnt that depending on your type of business and its risk rating, a female entrepreneur who has been in the business for at least a year can access up to N100 million in loans. Interested in the loan, click this link.

Womenpreneur Pitch-A-Ton target 18 and above female entrepreneurs who have been in business for at least a year. The Womenpreneur Pitch-A-Ton provides up to N10 million in financial grants. Interested in the Womenpreneur Pitch-A-Ton, click this link.

Meanwhile, for W Power, the female-owned business must have a minimum annual turnover of N5 million and must have an Access Bank account for at least 30 days.

GTBank: The lender has loan packages that are tailored for womenpreneur. GTBank has managed to simplify its loan application by offering its customers quick credit for businesses in need of working capital. GTBank focuses largely on industries dominated by women.

The loan is longterm with low-interest. For entrepreneurs in the education sector, it is 1.33% per month, 1.75% for the Healthcare segment, and 0.75% monthly for entrepreneurs in the food industry. Customers are expected to have operated their GTBank accounts for 12 months.

Entrepreneurs interested in these loan opportunities can access as much as 50% of their average annual turnover, while those operating in the Food space can obtain N2 million. The loan package comes with a flexible repayment option as loan tenure is from six to twelve months.

First Bank: Female entrepreneurs have access to specialised loans through First Gem, a womenpreneur loan package targeting businesses led by women. According to a statement by Frst Bank, First Gem is "designed specifically to meet your needs as a woman".

First Gem offers low-cost loans to fund your enterprise or undertake new projects. To access the funds, there are two accounts requirements: Savings and Current account.

FirstGem Savings Account

Zero account opening and operating balance of N100, Customised debit card, Flexible means of identification and 2 passport photographs required to open an account, FirstOnline – internet banking access/availability, Maximum single deposit of N100,000 at a time, Maximum cumulative balance at any time is N500,000.

Meanwhile, AllNews learnt that in the event the cumulative balance exceeds N500,000, account holders will be engaged to migrate to the generic savings account variant with full KYC requirements. To know more about the genetic savings account, click the link.

FirstGem Current Account

Minimum opening balance of N5,000 for Individuals and N10,000 for female-owned companies, Customized debit card, FirstOnline – internet banking access/availability, Account Maintenance Charge is capped at N0.90/mille per month, Two (2) satisfactory references.

Also needed under the current account is the Utility bill of the applicant, a verifiable means of identification and other requirements for opening a current account (Individual & Corporates) apply. To know more about the First Gem loan opportunity, click this link.

Standard Chartered: The lender in a statement, said it believes women deserve special treatment, that's why Diva Club was created. Diva Club offers personal loans and mortgage facilities. It also enables women to access customised world-class investment solutions.

Standard Chartered disclosed that it has a flexible currency plan, as the Diva Club Account is available in local and foreign currencies. So to access the financial opportunities of the Diva Club, you need to have a Diva Club savings or current account which has a minimum opening balance of N50,000, a current maintenance fee of N1 per mille if balance drops below NGN100,000.

Other Requirements To Join Diva Club

Two suitable references (Current Account only), 1 passport photograph, Valid International passport, driver's license, national ID card or voter's card, Proof of residential address for authorised signatories: current utility bill (not more than 3 months old) or documented staff visit or signed tenancy agreement.

The lender stated that "All original copies of the required documents to be sighted by an officer of Standard Chartered and the photocopies must be clear." To know more about the financial benefits of Diva Club, click this link.

What are banks targeting female entrepreneurs?

Apart from tapping into the female customer base and increasing their account holders, a McKinsey Global Institute and the Council on Foreign Relations report had disclosed that if Nigeria achieved full gender equity, the gross domestic product will earn an additional $229 billion by 2025.