Sterling Bank Ltd., in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has introduced a N5 billion loan initiative named Databanc. The initiative aims to bridge financial gaps for Nano, Micro, Small, and Medium Enterprises (NMSMEs) and was launched in Lagos under the theme “Building with Data: Promoting Economic Growth through Data-Driven Insights.”
Key Features of Databanc Loan Initiative
- Single Digit Interest Loan:
– The Databanc loan provides NMSMEs with access to funds at single-digit interest rates, ranging from N250,000 to N2,500,000 for one year.
- Target Audience:
– The program is designed specifically for nano, micro, and small businesses, providing them with local and tailored support.
- Data-Driven Support:
– The initiative aims to collect accurate data on small businesses to foster their growth and sustainability. It also aids Nigeria’s export potential by providing comprehensive market access and business support.
- Eligibility Requirements:
– Businesses must have a tax identification number and be registered with the Corporate Affairs Commission to qualify for the loan.
Statements from Stakeholders
Bunmi Kole-Dawodu, Lagos State Manager, SMEDAN:
– Highlighted the program’s role in providing easier access to financial support for small businesses and emphasized the importance of accurate data in driving business growth.
Charles Odii, Director General, SMEDAN:
– Stressed the significance of data in making informed economic decisions to support the small business ecosystem. He noted that the platform would enhance product knowledge and awareness among entrepreneurs.
Bolanle Tyson, Head of SME Products, Sterling Bank Ltd.:
– Explained that Databanc is a formalized portal that offers funding without human interface. The platform provides a seamless onboarding experience, ensuring business data integrity through unique promoter and business IDs.
Objectives and Benefits
– Economic Growth: The initiative aims to promote economic growth by providing easy access to funds and business support tailored to the needs of small businesses.
– Financial Inclusion: By targeting NMSMEs, the program seeks to include more small businesses in the financial system, thereby enhancing their potential for economic development.
– Sustainability: Through data-driven insights and support, the initiative aims to ensure the sustainability and growth of small businesses in Nigeria.
Call to Action
SMEDAN and Sterling Bank encourage small businesses to register on the Databanc platform to take advantage of the financial and business support offered. The initiative represents a significant step towards addressing the financial challenges faced by small businesses in Nigeria, fostering an environment of growth and sustainability.
