DBN launches 3 products for MSMEs

The Development Bank of Nigeria (DBN), has launched three products to promote the thriving of the Micro, Small and Medium scale Enterprises (MSMEs).

It is the federal government’s financing platform for MSMEs. The products are the Finance to Finance (F2F) product, Non-Interest Banking (NIB) product and the Long-Term product, which will promote funding for the sector through its Participating Financial Institutions (PFIs) especially those affected by the COVID-19 pandemic.

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According to a statement from the bank, the F2F is for lending to MSMEs through microfinance banks, cooperatives among others with seven years repayment tenor.

The NIB will help PFIs to lend to their MSME customers without interest; thereby supporting the needs of MSMEs who do not do interest loans. It has up to five years repayment period for a loan.

The long-term finance product has up to 10 years repayment period and could be obtained by MSMEs through PFIs

The bank said the structure of the fund is flexible and can be easily adapted to suit the PFIs’ peculiar needs and finance structure.