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A Nairalander's Experience With Bank Of Industry (documents Attached) - Business - Nairaland

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A Nairalander's Experience With Bank Of Industry (documents Attached) by traeces(m): 2:48pm On Feb 27, 2018
I apologize for the length of this story which is an illustration of the lip service our government has been paying to the encouragement of agriculture and private enterprise in Nigeria.

MY APPLICATION
In July, 2017, I submitted an application for a loan of five million, nine hundred and two thousand naira only (N5, 902, 000.00) at the Makurdi, Benue state branch of Bank of Industry. At the initial stage, I was very impressed by what I thought was the professionalism demonstrated by staff of the bank. I got a call on the 31st August 2017 notifying me of the approval of my loan. You can only imagine how delighted I was at the prospect of such a lifeline to my business considering the loan had a tenor of 3 years, moratorium of six months and purported interest of less than 10% per annum and given that my loan officer gave me the impression that now that the loan had been approved, disbursement was going to be a matter of days or weeks at the most.

I was therefore very surprised to say the least when 2 months down the line, I was yet to receive an offer letter under the pretext that searches were been carried out on my person and on my business. I patiently waited while inundating Bank of Industry Makurdi office with calls and visits. It was not until early November, 2017 that I received a call informing me that the searches came clean and my offer letter was now ready. I went to the office and asked to receive my letter but to my surprise, I was asked to pay a non refundable fee of 1% of the amount approved for me before I could even view the letter. This part sounded almost criminal to me, why won’t I see the terms governing the purported offer before committing resources I did not have? They told me it was the norm and that there was no other way so I went ahead to pay the sum of Fifty Two Thousand Naira (N52, 000.00) being 1% of the sum approved. See receipt of the payment attached.

Thereafter, I received a 6-paged offer letter in which I found ridiculous terms that made me wonder why a government agency whose objective was the encouragement of entrepreneurship could be that devious and self interested. See some details:

1.) The approved loan amount was five million, one hundred and ninety four thousand, three hundred and twenty two naira (N5, 194,322.00). A good percentage of this approved sum was for fees and charges which did not add any direct value to my business and which were at the exclusive discretion of the bank.
2.) The source was FGN (NEDEP) fund.
3.) It was to be discharged towards the procurement of items of equipment and raw material for my business. In other words, I was not supposed to get a kobo in cash, my suppliers were meant to get payment after they had supplied the materials I required.
4.) I also found in addition to other 8 conditions all of which I had met that I was meant to pay another security arrangement of 10% of the approved loan amount being Five hundred and nineteen thousand, four hundred and thirty two naira twenty kobo (N519,432.20)
5.) No legal action could be instituted howsoever instigated and/or sustained by my company against Bank of Industry jointly or severally without first giving BOI a ninety (90) day prior written pre-action notice of my company’s intention to so proceed against Bank of Industry.
6.) Bank of Industry’s ability to accommodate this facility within its legal lending limits was subject to availability of funds. This left me wondering why the bank will approve my application, collect a non refundable fee of 1% of the approved amount without first determining funds’ availability.
7.) The mother of all frauds in the offer letter was that if the loan was not disbursed within 2 months from the date of the letter of offer (31st October, 2017), the Bank of Industry without any consideration of why it was not disbursed reserved the right to review the terms and conditions of offer but if the loan was not disbursed within 3 months from the date of the letter of offer, the letter lapses and all expenses incurred by the bank shall be repaid by my company.
8.) If the offer letter contained unfriendly terms, you can only imagine what the 20 paged loan agreement proper contained. On the whole, the terms of the loan agreement was such that the bank was more than 100% covered while I and my 2 guarantors were made to bear all the risks and every legal obligation/responsibility.

This was the greatest source of my fear as it all meant that the bank could afford the highest form of irresponsibility and recklessness as far as the loan and its disbursement was concerned and not face any consequence whatsoever. However, not only did I need the loan, at this point I had invested so much resource in money, time and energy that I felt the need to see it all through. So I stayed interested nonetheless.

{To be cond} Meanwhile, feel free to share this story or post any similar experience you have had with BOI or any other government agency.

29 Likes 10 Shares

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Nobody: 2:56pm On Feb 27, 2018
angry

I have come to realize that at present day Nigeria , if you need to be exceptionally successful in any venture, while praying, you should cast and bind every 'spirit of Buhari'.

There are territorial powers and As a master of the universe, I know what territorial powers are and 'spirit of buhari' is that of bigotry, backwardness, nepotism and killings

49 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by wahles(m): 2:57pm On Feb 27, 2018
Nawa o

2 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by vivalavida(m): 3:05pm On Feb 27, 2018
And they will be screaming entrepreneurship upandan. Telling people to open business yet ordinary loan or grant is hard to obtain. I don't know where they expect people to get the money from. If you make the conditions so stringent, u have discouraged a lot of people.

Nothing works in this country

55 Likes 4 Shares

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by sholatech(m): 3:07pm On Feb 27, 2018
This is interesting for us all to learn. Been greatly recommending them based on their TV shows but these emerging facts point to many unknown challenges.

35 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by correctguy101(m): 3:15pm On Feb 27, 2018
Now tell me how SMEs and other small legit businesses are to spring up or grow up to go public?

Even the government and it's agencies scam it's citizenry after taking scam-taxes ..... $mh

27 Likes 2 Shares

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Nobody: 3:42pm On Feb 27, 2018
Good one

1 Like 2 Shares

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Nobody: 3:42pm On Feb 27, 2018
Good one We need to be very careful

3 Likes 2 Shares

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by stefanweeks: 3:42pm On Feb 27, 2018
bad one

1 Like

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Barmmyshoes(f): 3:43pm On Feb 27, 2018
Hmmm. This is serious. I somehow detest the issue of loan since I had a very bad experience. Someone offered me a loan, used the little funds I had in transporting myself to her office every now and then not until she changed interest rate to 40%. How I wan take do am?

Na so I just forget am dey run my hustle jejeli till the story go change. Barmmyshoes will get there one day!

Check link below for ongoing discounted sales of barmmyshoes perms and sandals

www.nairaland.com/4357664/quality-dope-stylish-perm-sandals

12 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by jazinogold(m): 3:44pm On Feb 27, 2018
grin
Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by superior1: 3:44pm On Feb 27, 2018
Before we blame the credit officer who worked on your document, we need a copy of the proposal/business feasibilty you submitted alongside your application

4 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by yomalex(m): 3:46pm On Feb 27, 2018
hmm
Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by obajoey(m): 3:52pm On Feb 27, 2018
I will leave this country someday..

7 Likes

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by AngryRebel: 3:54pm On Feb 27, 2018
modelmike7:
Good one
We need to be very careful
Yes,we need to be very careful of ur deceitful master Buhari. Noting works under him.

3 Likes

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by FarahAideed: 3:54pm On Feb 27, 2018
FortifiedCity:
angry

I have come to realize that at present day Nigeria , if you need to be exceptionally successful in any venture, while praying, you should cast and bind every 'spirit of Buhari'.

There are territorial powers and As a master of the universe, I know what territorial powers are and 'spirit of buhari' is that of bigotry, backwardness, nepotism and killings

You are right

1 Like

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by gen2briz(m): 3:55pm On Feb 27, 2018
Imagine
Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Viking007(m): 3:56pm On Feb 27, 2018
I went through worse when I applied for N3,000,000 last year.


My comment from last year.

Viking007:
Another Scam. I was among the first batch, since last year we got nothing, this was after all the stressful trainings & documentations.

11 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by psalmson001: 3:56pm On Feb 27, 2018
As far as Nigeria is concerned, NEVER NEVER NEVER collect loan from any bank or financial institution for a startup business. The business will be dead on arrival.

Until our financial institutions are really serious and ready to support SME's by putting "their" selfish interests aside, I will rather goan meet the witches in my village for a loan...

28 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by justtruth88miSt(f): 3:57pm On Feb 27, 2018
y didnt they removed the charges from the said load...? if they r sincere... thiefs

1 Like

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by thinktanke: 3:57pm On Feb 27, 2018
Hmmmm
OP unfortunately that organization is just a fraud. A friend of mine had a similar experience with them. He is a business man who had grown his company from scratch and thought he could expand to fulfill his dreams with the BOI only to lose about 3Million naira to them plus a lot of time wasted and funds expended flying on a regular basis for several months between Abuja and Lagos to the headquarters of his bankers to fulfill some purposely inserted impossible clauses in the terms for the loan.
You can imagine they asked him to pay that NON-REFUNDABLE deposit even when they knew they were not going to give him the facility. If not for God and his tenacity to move on. The guy for done go village!!!!
BOI is just a fraud!!!!
Sad situation in Nigeria where institutions that should support entrepreneurs just frustrate and sabotage them. Worse yet steal from them!!!.

64 Likes 7 Shares

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by tivta(m): 3:58pm On Feb 27, 2018
hunger in the land
Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by AnodaIT(m): 4:02pm On Feb 27, 2018
It's good to read Terms and conditions

2 Likes

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Innunique: 4:03pm On Feb 27, 2018
This is really really sad..
Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Oduok(m): 4:04pm On Feb 27, 2018
I was in a similar situation in 2016 when I participated in the BOI-GEF programme. I applied for one million naira to set-up a palm oil mill. The amount was 80percent of the project worth - I was committed to contributing 20percent. I scaled through the process and was given the offer letter. The conditions in the agreement were not just friendly at all. The Bank even said (undocumented) that I would never be given cash. That the suppier of equipment and raw materials need to supply on credit while the Bank pay them directly, much later. I had to write and reject the offer. What I noticed is that pursuing these loan promises from government would make you spend a lot of money you would have injected into your business - these expenditure adding nothing to your business. I see on their website people that are currently on the BOI-GEF ward. Maybe they should come and prove us wrong and tell us how they scaled through. Perhaps we would be tagged lazy.

38 Likes 2 Shares

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Sosqui: 4:05pm On Feb 27, 2018
This is really sad... But the 1% non refundable fee is a fraudulent one collected by the branch. I will advice you report them to their Management copying CBN. They must refund you the money.

Thank you

13 Likes 1 Share

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by Ateun: 4:05pm On Feb 27, 2018
This is exactly my story with the bank of industry. The added twist to mine is they keep asking for new documents every 2 weeks including my marriage documents. It has been 1 year since my application, my offer has lapsed and been renewed but I remained determined to fulfill all and see the end of it I.e disbursement. I chose not to be sceptical about the process but stay positive. It however seems like a deliberate attempt to frustrate smes. So much lip service in this administration. It is a fight to finish

3 Likes

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by edoman2016: 4:05pm On Feb 27, 2018
traeces:
I apologize for the length of this story which is an illustration of the lip service our government has been paying to the encouragement of agriculture and private enterprise in Nigeria.

MY APPLICATION
In July, 2017, I submitted an application for a loan of five million, nine hundred and two thousand naira only (N5, 902, 000.00) at the Makurdi, Benue state branch of Bank of Industry. At the initial stage, I was very impressed by what I thought was the professionalism demonstrated by staff of the bank. I got a call on the 31st August 2017 notifying me of the approval of my loan. You can only imagine how delighted I was at the prospect of such a lifeline to my business considering the loan had a tenor of 3 years, moratorium of six months and purported interest of less than 10% per annum and given that my loan officer gave me the impression that now that the loan had been approved, disbursement was going to be a matter of days or weeks at the most.

I was therefore very surprised to say the least when 2 months down the line, I was yet to receive an offer letter under the pretext that searches were been carried out on my person and on my business. I patiently waited while inundating Bank of Industry Makurdi office with calls and visits. It was not until early November, 2017 that I received a call informing me that the searches came clean and my offer letter was now ready. I went to the office and asked to receive my letter but to my surprise, I was asked to pay a non refundable fee of 1% of the amount approved for me before I could even view the letter. This part sounded almost criminal to me, why won’t I see the terms governing the purported offer before committing resources I did not have? They told me it was the norm and that there was no other way so I went ahead to pay the sum of Fifty Two Thousand Naira (N52, 000.00) being 1% of the sum approved. See receipt of the payment attached.

Thereafter, I received a 6-paged offer letter in which I found ridiculous terms that made me wonder why a government agency whose objective was the encouragement of entrepreneurship could be that devious and self interested. See some details:

1.) The approved loan amount was five million, one hundred and ninety four thousand, three hundred and twenty two naira (N5, 194,322.00). A good percentage of this approved sum was for fees and charges which did not add any direct value to my business and which were at the exclusive discretion of the bank.
2.) The source was FGN (NEDEP) fund.
3.) It was to be discharged towards the procurement of items of equipment and raw material for my business. In other words, I was not supposed to get a kobo in cash, my suppliers were meant to get payment after they had supplied the materials I required.
4.) I also found in addition to other 8 conditions all of which I had met that I was meant to pay another security arrangement of 10% of the approved loan amount being Five hundred and nineteen thousand, four hundred and thirty two naira twenty kobo (N519,432.20)
5.) No legal action could be instituted howsoever instigated and/or sustained by my company against Bank of Industry jointly or severally without first giving BOI a ninety (90) day prior written pre-action notice of my company’s intention to so proceed against Bank of Industry.
6.) Bank of Industry’s ability to accommodate this facility within its legal lending limits was subject to availability of funds. This left me wondering why the bank will approve my application, collect a non refundable fee of 1% of the approved amount without first determining funds’ availability.
7.) The mother of all frauds in the offer letter was that if the loan was not disbursed within 2 months from the date of the letter of offer (31st October, 2017), the Bank of Industry without any consideration of why it was not disbursed reserved the right to review the terms and conditions of offer but if the loan was not disbursed within 3 months from the date of the letter of offer, the letter lapses and all expenses incurred by the bank shall be repaid by my company.
8.) If the offer letter contained unfriendly terms, you can only imagine what the 20 paged loan agreement proper contained. On the whole, the terms of the loan agreement was such that the bank was more than 100% covered while I and my 2 guarantors were made to bear all the risks and every legal obligation/responsibility.

This was the greatest source of my fear as it all meant that the bank could afford the highest form of irresponsibility and recklessness as far as the loan and its disbursement was concerned and not face any consequence whatsoever. However, not only did I need the loan, at this point I had invested so much resource in money, time and energy that I felt the need to see it all through. So I stayed interested nonetheless.

{To be cond} Meanwhile, feel free to share this story or post any similar experience you have had with BOI or any other government agency.
Is your business a start-up or existing business?
Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by san316(m): 4:06pm On Feb 27, 2018
horrible. really horrible

This has nothing to do with government or bigotry as the first poster is trying to adduce. it is an institutional problem, common with present day banks be it commercial or micro-finance.


May God help us though.

7 Likes

Re: A Nairalander's Experience With Bank Of Industry (documents Attached) by edoman2016: 4:06pm On Feb 27, 2018
traeces:
I apologize for the length of this story which is an illustration of the lip service our government has been paying to the encouragement of agriculture and private enterprise in Nigeria.

MY APPLICATION
In July, 2017, I submitted an application for a loan of five million, nine hundred and two thousand naira only (N5, 902, 000.00) at the Makurdi, Benue state branch of Bank of Industry. At the initial stage, I was very impressed by what I thought was the professionalism demonstrated by staff of the bank. I got a call on the 31st August 2017 notifying me of the approval of my loan. You can only imagine how delighted I was at the prospect of such a lifeline to my business considering the loan had a tenor of 3 years, moratorium of six months and purported interest of less than 10% per annum and given that my loan officer gave me the impression that now that the loan had been approved, disbursement was going to be a matter of days or weeks at the most.

I was therefore very surprised to say the least when 2 months down the line, I was yet to receive an offer letter under the pretext that searches were been carried out on my person and on my business. I patiently waited while inundating Bank of Industry Makurdi office with calls and visits. It was not until early November, 2017 that I received a call informing me that the searches came clean and my offer letter was now ready. I went to the office and asked to receive my letter but to my surprise, I was asked to pay a non refundable fee of 1% of the amount approved for me before I could even view the letter. This part sounded almost criminal to me, why won’t I see the terms governing the purported offer before committing resources I did not have? They told me it was the norm and that there was no other way so I went ahead to pay the sum of Fifty Two Thousand Naira (N52, 000.00) being 1% of the sum approved. See receipt of the payment attached.

Thereafter, I received a 6-paged offer letter in which I found ridiculous terms that made me wonder why a government agency whose objective was the encouragement of entrepreneurship could be that devious and self interested. See some details:

1.) The approved loan amount was five million, one hundred and ninety four thousand, three hundred and twenty two naira (N5, 194,322.00). A good percentage of this approved sum was for fees and charges which did not add any direct value to my business and which were at the exclusive discretion of the bank.
2.) The source was FGN (NEDEP) fund.
3.) It was to be discharged towards the procurement of items of equipment and raw material for my business. In other words, I was not supposed to get a kobo in cash, my suppliers were meant to get payment after they had supplied the materials I required.
4.) I also found in addition to other 8 conditions all of which I had met that I was meant to pay another security arrangement of 10% of the approved loan amount being Five hundred and nineteen thousand, four hundred and thirty two naira twenty kobo (N519,432.20)
5.) No legal action could be instituted howsoever instigated and/or sustained by my company against Bank of Industry jointly or severally without first giving BOI a ninety (90) day prior written pre-action notice of my company’s intention to so proceed against Bank of Industry.
6.) Bank of Industry’s ability to accommodate this facility within its legal lending limits was subject to availability of funds. This left me wondering why the bank will approve my application, collect a non refundable fee of 1% of the approved amount without first determining funds’ availability.
7.) The mother of all frauds in the offer letter was that if the loan was not disbursed within 2 months from the date of the letter of offer (31st October, 2017), the Bank of Industry without any consideration of why it was not disbursed reserved the right to review the terms and conditions of offer but if the loan was not disbursed within 3 months from the date of the letter of offer, the letter lapses and all expenses incurred by the bank shall be repaid by my company.
8.) If the offer letter contained unfriendly terms, you can only imagine what the 20 paged loan agreement proper contained. On the whole, the terms of the loan agreement was such that the bank was more than 100% covered while I and my 2 guarantors were made to bear all the risks and every legal obligation/responsibility.

This was the greatest source of my fear as it all meant that the bank could afford the highest form of irresponsibility and recklessness as far as the loan and its disbursement was concerned and not face any consequence whatsoever. However, not only did I need the loan, at this point I had invested so much resource in money, time and energy that I felt the need to see it all through. So I stayed interested nonetheless.

{To be cond} Meanwhile, feel free to share this story or post any similar experience you have had with BOI or any other government agency.
Is your business a start-up or existing business? And what is your business into?

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