Fidelity Bank’s Green Energy Finance program is designed to help Small and Medium Enterprises (SMEs) in Nigeria procure renewable energy solutions, such as solar energy systems, inverters, batteries, and solar panels. These loans aim to reduce energy costs and promote sustainability. Here’s a step-by-step guide on how to apply for this loan:

Step 1: Eligibility Check

Before applying, ensure that your business meets the following requirements:

  1. Your business must be a registered Small or Medium Enterprise (SME) operating in Nigeria.
  2. You must be looking to invest in renewable energy systems such as solar energy systems, inverters, batteries, or solar panels.
  3. Your business should demonstrate steady cash flow to support loan repayments.

Step 2: Prepare Required Documents

Prepare the necessary documentation for submission, including:

  1. CAC registration and relevant business documents.
  2. Solar energy equipment quotations from trusted vendors.
  3. Personal Guarantee backed by a notarized statement of net worth.
  4. Undated cheques from other banks for the promoter’s security.
  5. Insurance documentation noting Fidelity Bank as the first loss payee (key-man insurance).

Step 3: Submit Your Application

You can apply by visiting any Fidelity Bank branch or online. During this stage, you must provide:

  1. A completed Lease Agreement outlining the terms and conditions of the loan.
  2. A Letter of Proceeds Domiciliation, which confirms that business proceeds will be directed into your Fidelity Bank account.

Step 4: Loan Review and Approval

Fidelity Bank will review your application and assess it based on:

  1. Equity Contribution: A requirement of 30% upfront payment from the borrower.
  2. Loan Amount: You can borrow up to ₦20 million.
  3. Collateral: The purchased renewable energy products will serve as the main collateral for the loan.
  4. Loan Tenor: The repayment period is up to 24 months.
  5. Interest Rate: The interest rate stands at 27% per annum, along with additional charges such as a 1% management fee, 0.5% insurance fee, and 1% residual fee.

Step 5: Receive Funds

Once approved, the funds are disbursed to procure the renewable energy equipment. The repayment schedule spans over 24 months, offering flexibility in managing loan repayments.

Key Loan Features & Benefits:

  • Single Obligor Limit: You can access up to ₦20 million.
  • Loan Tenor: Repay over 24 months.
  • Equity Contribution: Borrowers must provide a 30% equity contribution.
  • Interest Rate: A competitive 27% per annum interest rate applies.
  • Management Fees: A 1% management fee and 0.5% insurance fee are applied.
  • Collateral: The purchased renewable energy equipment serves as collateral for the loan.

Fidelity Bank’s Green Energy Finance is a practical solution to help SMEs transition to sustainable energy, reducing operational costs and promoting environmental responsibility.

By applying for Fidelity Bank’s Green Energy Finance, your business can significantly reduce energy cost, contribute to a low-carbon future while benefiting from reduced energy costs, improved air quality, and long-term sustainable development.

FAQs

1. What is Fidelity Bank’s Green Energy Finance program?
It is a loan program designed to help SMEs in Nigeria access renewable energy solutions, including solar energy systems, inverters, batteries, and solar panels.

2. Who is eligible for the loan?
Registered SMEs operating in Nigeria that plan to invest in renewable energy systems and demonstrate steady cash flow are eligible.

3. What is the loan amount and repayment period?
You can borrow up to ₦20 million with a repayment period of up to 24 months.

4. What is the interest rate for the loan?
The loan comes with an interest rate of 27% per annum, plus a 1% management fee, 0.5% insurance fee, and 1% residual fee.

5. What are the equity contribution and collateral requirements?
Borrowers must provide a 30% equity contribution, and the purchased renewable energy equipment will serve as collateral.

6. How do I apply for the loan?
You can apply by visiting a Fidelity Bank branch or online. Ensure you have the required documents ready for submission.

7. Can individuals apply for this loan?
No, this program is exclusively for registered SMEs in Nigeria.

If you’re interested in learning more, visit Fidelity Bank’s website or visit their nearest branch for more details.

Solar Financing for SMEs in Nigeria

Solar financing options, such as Fidelity Bank’s Green Energy Finance, provide an affordable pathway for businesses to access clean energy solutions. As energy costs in Nigeria continue to rise, solar loans in Nigeria are becoming a vital tool for SMEs to transition to sustainable energy sources while maintaining financial stability. This program not only simplifies the process of acquiring renewable energy systems but also helps businesses save significantly on operational costs and contribute to a greener future.