Why SMEDAN And Bank Loans Must End Request for Landed Properties

Why SMEDAN And Bank Loans Must End Request for Landed Properties

The essence of Tekedia is to promote technology and entrepreneurship. Accordingly, we take comments on these areas very seriously. After publishing the article on SMEDAN, we have received emails from people basically telling us that the agency makes things very difficult and getting loan is practically impossible for those without LAND. In other words, they require you to have land.

 

Please read the comments from Ejiofor on the said publication

 

Your review of SMEDAN,though not complete,is still commendable.The only problem with their activities and that of other Nigerian government agencies tasked with SME development,is that they are yet to come to terms with the fact that in the 21st century,factories are more in the mind than physical.SMEDAN still believes you need to provide ‘land’ before you qualify for loan. They should be told that in the knowledge economy,the brain is all the ‘land’ you need to start your ‘factory’. Thanks

 

Of course, SMEDAN does not have a web presence and email system is broken. But good enough, they have Q/A and this is what they have got.

 

Que 9: What do I do to get a loan from the bank?
Ans:
(i) Clients must have an account with the bank.
(ii) There must be an application for loan indicating how much is required and the purpose
(iii) Applicant must include the following documents:
-Business Plan/Feasibility Study
-Company Information
-Financial Data
(iv) Owners invest at least 25% of total project cost, excluding land

 

Yes, you must have 25% of the total project cost. But does that imply you must have land? We cannot answer this question, until we can read from someone that has gone through this process. We are trying to get some feedbacks from SMEDAN to know if they understand that the old economic factors of production have been replaced by knowledge. Land is not that critical. What rules now is knowledge. Even that labor and capital should not hinder knowledge. If not the likes of Facebook will not be born in our time.

 

Nonetheless, we use this medium to commend SMEDAN – some people have written and explained how this agency have helped them. They have really good comments about this amazing institution. We hope they adapt to the 21st century and continue to offer solutions that will help build Nigeria.

 

Any comment and experience about this agency will be appreciated. We think it is a very important one at this stage of our national rebirth.

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