Many of our readers have privately asked questions on how to reach Development Bank of Nigeria, DBN, for business loan. Maybe presenting a nutshell guide here will help and serve more people.


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DBN provides wholesale term funding and risk-sharing facilities to eligible financial institutions for on-lending to Micro, Small and Medium Enterprises, MSMEs.

The Bank is the federal government’s initiative for funding the development of the real sector. Its products and services are designed to develop the local economy by supporting local entrepreneurs and empowering small business owners to drive economic growth.

The DBN loan repayment tenure is flexible (up to 10 years with a moratorium period of up to 18 months) and the interest rate is competitive, referencing market rates. The bank says it is committed to facilitating increased access to financing for MSMEs

Under its funding models the bank functions through other financial institutions which it refers to as Participating Financial Institutions (PFIs). The PFIs may opt to share risk with the DBN.

The bank does not only provide loans, it also provides Technical Assistance to both the PFIs and the ultimate end borrowers.

Firstly, all MSMEs, whether start up or existing businesses, involved in productive enterprises are eligible for the loan.

But DBN does not grant loans directly to beneficiaries. The loans are passed through other financial institutions, specifically, Development Finance Institutions, DFIs, commercial banks and microfinance banks, selected as eligible by DBN. This means the prospective loan beneficiary must be a customer of any of the eligible financial institutions.

Next week we discuss how to qualify and the process of getting the DBN loan. We will also give names of the eligible financial institutions through which you can get the DBN loan.