MICROCAPITAL BRIEF: Diamond Bank of Nigeria Offers Collateral-Free Loans to Micro-, Small and Medium-Sized Enterprises (MSMEs)

Diamond Bank Public Limited Company (PLC), a Nigerian commercial bank that was established in 1990, recently announced that it would extend collateral-free loans to micro-, small and medium-sized enterprises (MSMEs). According to Diamond Bank’s enterprise seminar coordinator, Chima Nnadozie, “MSMEs are responsible for 80% of the gross domestic product (GDP). They are also responsible for employing most people in the country which contribute to the growth of Nigeria’s economy.” Although entrepreneurs will not have to provide collateral for their loans, they will be required to meet the bank’s standards pertaining to the history of their businesses.

Diamond Bank made the announcement at its 12^th annual enterprise seminar, which is offered to entrepreneurs throughout the country in an effort to help them develop strategies to grow their businesses. As of December 2009, Diamond Bank reported total assets of NGN 604 billion (USD 3.8 billion) and total deposits of NGN 449 billion (USD 2.8 billion).

By Julie Moksim, Research Associate

About Diamond Bank Public Limited Company: Diamond Bank is a commercial bank that was established in Nigeria in 1990. According to the bank’s website, its mission is “to create a unique international bank focused on providing creative solutions to customers’ business problems, with an absolute commitment to quality.” Diamond Bank operates in three business segments: retail banking, corporate banking and the public sector. Diamond Bank’s local subsidiaries are Diamond Securities Limited, Diamond Pension Funds Custodian Limited, Diamond Mortgages Limited and ADIC Insurance Limited. As of December 2009, Diamond Bank reported total assets of NGN 604 billion (USD 3.8 billion) and total deposits of NGN 449 billion (USD 2.8 billion).

Sources and Additional Resources:

Vanguard Online Edition: “Diamond Bank Lures Entrepreneurs on Loan Without Collateral” by Peter Egwuatu, http://www.vanguardngr.com/2011/03/diamond-bank-lures-entrepreneurs-on-loan-without-collateral/

MicroCapital.org Brief, February 14, 2011: Central Bank of Nigeria (CBN) Reviews Efforts to Encourage Microfinance, Discusses Challenges, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-cbn-reviews-efforts-to-encourage-microfinance-discusses-challenges/

MicroCapital’s Microfinance Universe Profile: Diamond Bank PLC

https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Diamond+Bank+PLC

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