Criteria for BOI Cosmetics and Beauty Care Products Fund/ Apply Now – The bank of industry loan application form is online. This online application portal is created for the convenience of the applicants. Related to BOI entrepreneurship ( economic empowerment) funds are, bank of industry loan for graduates 2021 & 2022, bank of industry yes program, bank of industry interest rate, bank of industry recruitment and bank of industry cap fund.
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This particular post is going to highlight all the criteria needed for BOI Cosmetics and beauty care products. Remember that looking good is a good business, more especially we would want our women to look good for us.
Criteria for BOI Cosmetics and Beauty Care Products Fund/ Apply Now
In addition, BOI Cosmetics and Beauty Care Products Fund Classification of Cosmetics and Beauty Care Product:
For BOI projects, cosmetics and beauty care products can be classified into five (5) sub-clusters namely;
- Body Creams,
- Beauty Care,
- Hair Products,
- Fragrances and
- Personal Care.
BOI Cosmetics and Beauty Care Products Fund Basic Equipment:
The basic equipment for a small scale operation are listed below:
- Stainless steel container or tanks.
- Heater.
- Cooler.
- Mixer.
- High spinning turbo propeller.
- Plodder machine.
- Automatic dose liquid filling and capping.
- Two head automatic cream filling machine.
- Packaging machine.
However, on the Criteria for BOI Cosmetics and Beauty Care Products Fund/ Apply Now. while some of these equipment can easily be fabricated locally, the modern automated machines and equipment, for mass and specialized production, are imported from Germany, Italy, United States of America, Britain, India, China, etc. Below are the website for some equipment suppliers:
- Website: www.jutaojx.com
- And Website: www.flowtam.com
- Website: makingcosmetics.com
Criteria for BOI Cosmetics and Beauty Care Products Fund/ Apply Now
Targeted Investors
Furthermore, the product will be available to existing and new Limited Liability Companies and Enterprises engaged in cosmetics and beauty products.
PROJECTED IMPACT
A typical small- to medium scale factory will create an average of 5 – 10 direct jobs and 15 – 25 indirect jobs, totaling 20 – 70 jobs.
Small Medium
Direct 5 -10 20
Indirect 15 – 25 50
Total 20 – 35 70
SINGLE OBLIGOR LIMIT: Up to N500 million
PRICING:
Interest Rate: 9 % per annum.
Fees: 1 % processing fee.
TENOR 31/2 – 7 years commencing at the end of the moratorium period
MORATORIUM 6 – 12 months
SECURITY:
Loan Amount (N’m) Security Arrangement
- Specific charge over the equipment financed.
- Irrevocable Personal Guarantee of the Chief Promoter of the company.
- 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)
In addition, the guarantees must be supported with a Notarized Statement of Net worth acceptable to BOI.
- All assets debenture.
- Irrevocable Personal Guarantee of the Chief Promoter of the company.
- One (1) external guarantor acceptable to BOI who must belong to any of the following categories:
Criteria for BOI Cosmetics and Beauty Care Products
- 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 a Notarized Statement of Net worth acceptable to BOI.
Or
4.Bank Guarantee from Commercial Banks acceptable to BOI.
Irrevocable Personal Guarantee of the Chief Promoter of the company in addition to or a combination of the following:
- All assets debenture
- Legal mortgage on pledged property.
Or
- Bank Guarantee from Commercial Banks acceptable to BOI.
Criteria for BOI Cosmetics and Beauty Care Products Fund/ Apply Now
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:
Furthermore, 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.
FUNDING SOURCES:
Again, Loans of N5 million – N50 million: BOI and CBN N220 billion Micro, Small and Medium Enterprise Development Fund (MSMEDF)
- Loans above N50 million: BOI Fund
- For those customers with exportable products: AfDB facility.
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:
Furthermore, after successful installation and testing of the equipment, payment shall be made directly to raw materials suppliers.
Visit www.boi.ng/apply/ to apply online.
Finally, considering the Criteria for BOI Cosmetics and Beauty Care Products Fund/ Apply Now, as professionals, there are a lot we can do for you in your business. Keeping your business accounts including internal control system, auditing, taxation, CAC documentations and others. Click here to check our services. Remember too to contact us for your business plan.
Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
