How To Apply For SMEDAN Loan For Your Small Business

You may have heard of SMEDAN loan or just SMEDAN and know exactly what the agency does; but for the benefit of readers who don’t know, SMEDAN stands for Small and Medium Enterprise Development Agency of Nigeria. 

As the name implies, it’s a federal agency set up to champion the development of small and medium-scale businesses in Nigeria. It is charged with doing this through upskilling, funding, and the provision of tools MSMEs can leverage to grow their businesses. 

This article focuses on funding. If you run a small or medium-scale operation and are looking for low-interest loans to fund it, this piece explains how to access SMEDAN loan provisions.

SMEDAN Loan? What is it About?

SMEDAN provides loans to nano, small, and medium-sized businesses, particularly loans with single-digit interest rates. These loans are usually launched in collaboration with financial institutions, like the recent pairing with Sterling Bank to launch a N5 billion loan program. 

While the program is part of Sterling Bank’s continuous effort to support small businesses in the country in growing and scaling, SMEDAN had the database and outreach to get the funds directly into the hands of business owners who needed them.

Who Can Apply For a SMEDAN Loan? Eligibility Criteria

There are a few requirements for SMEDAN loan application:

• The first step, of course, is to own a business classified as a nano, small or medium enterprise. You can’t run a huge ‘Dangote-like’ factory and apply for this loan.
• Secondly, you must be Nigerian and have some proof of identification, preferably a NIN and BVN.
• Next, you must be 18 years old and above. (Sorry to the sweet 16-year-old business mogul. Wait a few more years)

Easy criteria right? Now, let’s see what’s required to get a SMEDAN loan.

Requirements SMEDAN Loan Registration

You’ll need four things:

• A business name (with or without CAC approval). This means you can apply even if you haven’t registered your business name with the CAC.
• Active email address and phone number
• NIN — National Identification Number
• BVN 
• SMEDAN C

So, let’s say you’re eligible to apply and have all the requirements, how do you go on to apply for the loan? 

How To Apply For SMEDAN Loan

To access SMEDAN loans, you first have to register with the agency. Follow these steps to do just that:

#Step 1: On SMEDAN’s website, click the “Register” button on the far right corner to start registration.

#Step 2: Fill in all your relevant information on the registration page and hit “Continue”.

#Step 3: On the next page, enter your residential information and create a password to log into your SMEDAN account. Hit “Continue”.

#Step 4: A verification code will be sent to your email. Enter it into the provided field and click “Submit”.

#Step 5: Log into your account with your details afterwards.

 Once you’re in, you will land on a dashboard that looks like the photo below. 

#Step 6: Click on “Complete Profile to continue your profile creation.

#Step 7: It might seem like a lot, but SMEDAN needs your NIN and BVN to verify your ID before you’re approved for a loan. So go ahead and enter your details. However, if you don’t have any of these details ready, you can click on “Continue” to skip it for now.

#Step 8: Next, enter your business information. 

Under [CAC Status], click “Unregistered” if your business isn’t registered with CAC at the moment of your application (although we recommend you do this as soon as possible). If your business is registered, then choose “Registered” to enter your information.

Underneath the business information page, there is a section that will ask you to brief about your business. Make sure you describe your business in the best way possible without sounding too sales-y or pushy. 

#Step 9: Once you’ve completed your profile creation. Click on the banner that says [Get the Loan] to apply for the available loan offer SMEDAN has at your moment of application.

Please note that, as of the time of writing this, SMEDAN loans are funded by Sterling Bank. Therefore if you click on the “Get the Loan” button on your screen, you will be taken to your app store to download Sterling Bank’s loan product. Download the app and follow the instructions to apply for your business loan. 

However, this loan process might change in future depending on SMEDAN’s partnering financiers.

By registering your business with SMEDAN, you will become eligible for not only the loan on offer at the moment but also any range of other benefits that may be available from time to time including grants, government assistance and other resources.

How long till you get a SMEDAN loan after application?

The timeline to get a loan after submitting your application will depend on the loan financier at the time of your application. Generally, though, business loans to nano, small and medium businesses do not usually take more than a month to get disbursed to the entrepreneur. 

With SMEDAN, you might have to be a little more patient especially if a lot of people are applying at the same time.

Just know that, if your business checks out for a loan, SMEDAN’s financiers will disburse to you in no time. You only have to follow up and stay in touch.

There you have it. Get started on your loan application by visiting https://smedan.gov.ng/ right away.

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