About SMEDAN and the MSME Registration
The Federal Government of Nigeria established SMEDAN in 2003 to help in developing MSMEs in Nigeria. SMEDAN is an acronym for Small and Medium Enterprises Development Agency of Nigeria. Some of the objectives of this organization include coordinating MSMEs, developing helpful policies, and promoting programs to aid MSMEs.
SMEDAN’s latest initiative requiring MSMEs to register is based on its objectives. This program requires these businesses to register with SMEDAN to help with creating a database for the body. Examples of businesses eligible for this registration include tailors, artisans, restaurant owners, etc.
This registration program exposes business owners to certain benefits, including:
a. SMEDAN certificate.
b. The conditional grant scheme from SMEDAN.
c. Training programs.
d. Business loans from different bodies.
e. Unique Identification Number.
f. Business Insurance.
The Central Bank of Nigeria is the Apex Bank of the country. Its position as the bank of banks means that it has made provision for businesses to access loans. The CBN does not provide loans to businesses directly. Instead, it gives loans through other bodies. One such body is SMEDAN.
SMEDAN handles the disbursement of CBN loans to small and medium business enterprises within the country. To access these loans, you need to take the following steps:
a. Complete your SMEDAN MSME registration.
b. Open the Credit Information Portal on the SMEDAN website.
c. Click on Access Loans and choose any of the loans available. These include personal, business, mortgage, and credit card loans.
d. Submit the required information.
e. Check loan availability.
f. Submit your loan application.
One of the advantages of this loan is that the interest rates are very low.