MECHATRONICS

PURPOSE/ RATIONALE ·         Mechatronics is projected to play a major role in industrial development and virtually all fields of endeavour in Nigeria in consonance with the global trend.

 

·         With the importance and growth of this innovative technology in the Nigerian industrial ecosystem, it is imperative for the Bank of Industry (BOI) to promote and support the mechatronics phenomenon.

TARGET MARKET/

CRITERIA

The Fund will be accessed by Limited Liability Companies and Enterprises engaged in mechatronics diagnostics as well as industries that need to incorporate the technology in their operations. This includes the automobile, medical and agricultural sectors of the Nigerian economy, to mention a few.
PROJECTED IMPACT  High employment generation along the value chain employment generation along the value chain.
SINGLE OBLIGOR LIMIT
  • Up to N500 million in accordance with BOI SME lending limits
PRICING

 

Interest Rate: 9 % per annum.

Fees: 1% Processing Fee for loan less than N50 million.

          1% each for Appraisal and Commitment Fees for loan

above N50 million

TENOR
  • 31/2 – 7 years (inclusive of moratorium).
MORATORIUM Provision of 6 – 12 months moratorium
SECURITY
Loan Amount (N’m) Security Arrangement
  5.0 – 10.0 1.         Specific charge over the equipment             financed.

2.         Irrevocable Personal Guarantee of the Chief             Promoter of the company.

3.      Two (2) external guarantors acceptable to BOI          who must belong to any of the following          categories:

  • Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.
  • Bankers (not below the level of Assistant Manager) and must have been confirmed by current employer.

·           Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

·           Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers)

·           The guarantees must be supported with Notarized Statement of Net worth acceptable to BOI.

  >10.0 ≤ 20.0
  1. All assets debenture.
  2. Irrevocable Personal Guarantee of the Chief Promoter of the company.
  3. One (1) external Guarantor acceptable to BOI who must belong to any of the following categories:

a)   Senior Civil Servant (Level 12 and above) who should not be more than 53 years old or not more than 28 years in service (whichever comes first.

b)   Bankers (not below the level of Assistant Manager) and must have been confirmed by current employer.

c)      Professionals i.e. Medical Doctors, Lawyers, Accountants, Engineers, etc.

d)     Senior Staff (not less than a manager) of reputable quoted Companies, International Oil Companies, Telecommunications Companies (GSM providers)

The guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI.

Or

1.  Bank Guarantee from Commercial Banks acceptable to BOI.

  > 20.0 1.   Irrevocable Personal Guarantee of the Chief Promoter of the company in addition to one or a combination of the following:

i. All assets debenture.

ii. Legal mortgage on pledged property.

Or

2.    Bank Guarantee from Commercial Banks acceptable to BOI.

FUNDING

STRUCTURE

·         Loan up to N50 million: 90% maximum from BOI (including working capital from BOI or the SME-friendly banks).

·         Contribution by the promoter – 10% (minimum)

·         Loan above N50 million: 80% maximum (including working capital from BOI or the SME-friendly banks).

·         Contribution by the promoter – 20% (minimum)

·         Existing Business:

·         For an existing project, the estimated value of the factory building and/or relevant processing equipment, may be applied against the borrower’s 10 – 20% contribution. The factory building and/or equipment must be valued professionally by any of BOI’s accredited valuers. Professionally by any of BOI’s accredited valuers.

DISBURSEMENT Term Loan:

·         In phases in accordance with agreed milestones and shall be backed by provision of performance bond by the accredited equipment suppliers (where the suppliers demand for advance payment before delivery of the equipment).

 

·         Establishment of Letters of Credit where the plant and machinery are to be imported.

 

Working Capital:

After successful installation and testing of the equipment and payment shall be made directly to raw materials suppliers.

 

REPAYMENT SOURCE
  • From proceeds of the operation of the Business.
REPAYMENT MODE ·   Monthly by direct debit of customer’s account domiciled with the participating SME-friendly bank on the basis of a Tripartite Agreement signed between BOI, the SME-friendly Bank and the Customer. Such direct debit collections, must be remitted by the SME-friendly bank to BOI within 24 hours. In the event of default, the SME-friendly bank must notify BOI within 24 hours to trigger prompt remedial action by the Bank.

§  In the alternative, the customer should provide post-dated cheques in line with the amortization schedule

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