Ecobank Nigeria Limited is offering 9% interest rate for technologies business that wants to buy certain equipment or gadgets to scale business operations.

The single digit interest rate loan comes under the Central Bank of Nigeria’s (CBN) creative industry initiative with 10 years repayment period.

Apart from the single digit interest rate, there is also a 3 years moratorium for borrowers’ repayment plan.  

Meanwhile, the offer is extended to lender’s customers – existing and potential – that requires new equipment or gadgets for the tech business operations at 20% equity contribution.

This equity contribution is determine from the equipment cost price obtained via supplier’s proforma invoice detailing other specifications.

By its features, the creative industry support for tech businesses is consider as sweetheart deal at a single digit interest rate.

This open lending offer will support growth as technologies business that need to expand their companies operations or begin a small scale business will be adequately funded.

It is safe to note that the finance lease arrangement transfers ownership to customers after proper contract arrangement has been made.

Single digit cost of fund isn’t as heavy as it used to be. Interest rate per annum is 9%, according to Ecobank.

What that means is that a loan of N1 million for a 12-month period requires interest payment of N90,000.

Say the amount is higher, Tech business owners can actually spread repayment over the next 10 years for any equipment acquires.

While the repayment period comes in decade, there is also three years moratorium.  This gives enough time for tech business to hack growth and settles obligation.

All that is required is proper records for business transaction and loan repayment plan – which is not really a rocket science.

Nothing exists in vacuum, even nature abhors it. So, the offer comes with terms and conditions.

Let me break it down. To obtain this loan, you are required to provide collateral.

According to Ecobank, required collateral for you to obtain the loan to buy the equipment can be mortgage debenture.

Ecobank said you can also submit to lien on stocks of trade and items of equipment.

A serious business owners would agree that this is not too much to ask considering the value addition to your business.

Workable case:

Company A has strong need to expand and it requires N50 million worth of equipment to scale.

A financial consultant knows that your problem is not N50 million requires to get the equipment.

Your problem is would the equipment generates directly or indirect amount equivalent to the principal +interest rate at due date.

So, you will need to do an investment plan detailing pattern of your inflow and outflow to determine your net position.

If the asset will help growing your business and its net position is positive, you might have to consider a visit, call or email to Ecobank Nigeria.