This article tells you what you shouldknow and subsequently do to access an estate developer’s loan in Nigeria.It is a long process in gaining access to funds for that estate development project. Estate developers in Nigeria have one major constraint and that is the cost of acquiring land which is the first stage on a somewhat tumultuouspath to what should ordinarily turn out to be a worthy investment. Hence, money plays a huge and vital role in any estate development project. This article reveals steps to take in obtaining an estate developer’s loan.There is no gainsaying that the cost of land in Nigeria is unusually high especially in cities like Lagos, Port Harcourt, Abuja and Enugu. How about the problem of accessing fundsfor estate developers which is a mustfor most if not all estate developers? Developing an estate is not child’s play, there’s a lot that goes into it, neither is obtaining an estate’s developer’s loan.However, if a developer can have access to funds, he may be on his way to solving a myriad of problems. You know that saying about money making the world go round right?
Albeit, some estate developers don’t even know the procedural processes involved in accessing these funds; they are unaware of what it takes to access an estate developer’s loan in Nigeria for their estate development project
Here is a checklist of what you should do to access an estate developer’s loan in Nigeria.
1.Application form with 2 passport photographs of the signatories to the credit
2.Application letter addressed to the Managing Director of the Bank/Mortgage Bank granting the loan
3.Certificate of Incorporation
4.Photocopy of article and memorandum of association of the company with certified true copy of form C02 and CO7.
5.Detailed brochure and profile of the company including:
*.List of Board of Directors( Names, Position and Profession in tabular form)
*.List of shareholding profile of the Board of Directors and others
*.List of Management staff including rank, designation, profession, qualification and years of experience
*.Technical team if different from management staff
*.List of project executed by the developer indicating location, name of Estate, house type, number of housing units and cost
1.Audited annual accounts with signature, seal and certificationstamp of the auditors fpr the previous three years
2.Photocopy of the tax clearance certificate for three years
3.Approved building and layout plan
4.Financial plan and budget including financial projections
5.Copy of title document, deed of assignment
6.Equity contribution
7.Proposed collateral security
8.The company’s board of Directors resolution to borrow signed by the chairman and company’s secretary.
9.Valuation report signed by a registered estate surveyor on the proposed project, appointed and approved by the mortgage bank
10.Priced Bill of Quantities (BOQ)/Bill of completion signed by a registered quantitysurveyor
11.Feasibility and viability development report
12.Cash flow projection stating the proposed periodic repayment
13.Project work program/plan in addition to fund release plan
14.Marketing plan
15.List of intending buyers
Any other relevant information that may facilitate quick consideration of the estate developer’s loan would be welcomed.
These are a few of the criteria and lending guidelines a typical mortgage bank in Nigeria would look into before granting loan to an estate developerThe bottom line is that the overall business and financial risk of your business is put into consideration when evaluating your loan application.
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