EDC and FastCredit Introduce N2bn Low-Interest Loans to Boost Nigerian MSMEs: How to Apply

The Enterprise Development Centre (EDC) of Pan-Atlantic University has partnered with FastCredit to unveil a groundbreaking single-digit interest financing initiative aimed at supporting micro, small, and medium enterprises (MSMEs). The program was officially launched at an event in Lagos and seeks to address the persistent funding challenges faced by small businesses operating under high-interest credit conditions.

Yetunde Faulkner, Acting Managing Director of FastCredit Finance Company Ltd, explained that the partnership is designed to make MSMEs scalable and sustainable by providing access to affordable financing. “Through this initiative, SMEs can access loans starting from N5 million at a flat monthly interest rate of 0.75 percent, equivalent to nine percent per annum, in collaboration with our development finance partner, the Bank of Industry (BOI),” she said.

Faulkner added that FastCredit has committed N2 billion to this SME financing scheme, emphasizing its goal to enable entrepreneurs to grow revenues faster than costs, improve sustainability, and create more jobs, a key priority for Nigeria’s economy. “We aim to make a tangible impact in the lives of everyday Nigerians, particularly those in Lagos,” she noted.

Dr. Nneka Okekearu, Director of EDC, described the partnership as a historic move to bridge the financing gap confronting entrepreneurs. “While we have existing collaborations with commercial banks, double-digit interest rates have made funding inaccessible for many SMEs. This agreement with FastCredit for single-digit loans represents a transformative opportunity for our members,” she said.

According to Okekearu, access to single-digit financing will boost business productivity, enabling manufacturers to expand output and MSMEs to generate more dignified and sustainable employment for young Nigerians. “An entrepreneur who previously transacted business with N2 million can now access N10 million, enhancing production capacity and profit margins,” she explained. Entrepreneurs within EDC’s network who meet eligibility criteria can access loans starting from N5 million at nine percent per annum.

FastCredit’s Executive Director, Aviomoh Daniel, outlined the key considerations for loan approval, highlighting business viability, profitability, and the entrepreneur’s character. He noted that collateral is considered last, and business credibility is enhanced through proper structuring and registration as a limited liability company.

The initiative has received positive feedback from business consultants and alumni. Feyikemi Odunuga, a business consultant, praised the collaboration for improving access to capital, particularly for manufacturing entrepreneurs. EDC alumnus Kachi Salvation described the program as “amazing,” noting its potential to train women entrepreneurs and provide sustainable funding support.

To apply for the single-digit loan, applicants must submit a 12-month bank statement, BVN, NIN, TIN of key directors, company profile, valid identification, passport photograph, verifiable credit history, utility bill, direct debit mandate, guarantor details, vendor invoice, and collateral valuation.

This partnership marks a significant milestone in creating an enabling environment for MSMEs in Nigeria, offering both financial empowerment and opportunities for business growth.