This post contains key information on How you can Apply for World Bank Loan, but first of all, you will need to know the basic information about the World Bank, and that includes who World Bank is, what they do, How they operate, where you can find them, all these vital information will further guide you on how to apply for world bank loan.
what comes to your mind the first time you hear ‘world bank’ i wont be surprised if some persons may even regard world bank as one of the commercial banks, or probably some may think as the name implies, ‘World Bank’ that it is located in the United States of America, read along for clarification.
What Is World Bank?
Unlike the Central banks and the commercial banks of different countries of the world,
The World Bank is an international financial institution
How Did World Bank Start?
History has it that?The World Bank was created out of the?Bretton Woods agreement of 1944, as a result of many European and Asian countries needing?financing?to fund reconstruction efforts.
Bretton Woods agreement?was an agreement by the 730 delegates from all 44 Allied nations including the United States and the Great Britain, in Preparation to rebuild the international economic?system and develop majorly the Asian and the European countries which were devastated by the raging world war 11, it was held at the Mount Washington Hotel in?Bretton Woods, New Hampshire, United States
where is world bank located?
The World Bank consist a group of nations,
this nations had earlier signed on to offer technical support and finance to other developing nations.
the world bank is not located in one place like some persons may have imagined,
see the breakdown below;
Headquarters
the headquarters of world bank is located in Washington D.C.
Branches
With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership, The bank has locations in six areas, Latin America, Africa, East Asia, Europe, South Asia and the Middle East.
Where to apply for world bank loan
The World Bank has created local offices to help underdeveloped or poor countries have ready access to services offered by the bank. In this way, the location of the offices helps ensure that funds and information are going to the people who need them,?the World Bank works primarily with the governments of developing and needy countries.
Can I apply for world bank loan directly as an individual?
the world bank does not operate exactly like the usual commercial banks,?The IFC which operates through the world bank does not lend money directly to micro, small or medium businesses but many of such may access loans through other financial enterprises that loan money from the IFC.
How then does world bank operates loan disbursement
The World Bank loan requirements and its system is not the same as with other commercial banks or central bank, the World Bank?implements poverty reduction strategies which
combines a cross-section of local groups using a wel-informed analysis of the financial and economic situation of the needy country, The government of such needy countries then identifies priority programs that are to be looked into first. After this, the
World Bank aligns its aid efforts through its assistance channels.
the following are the four channels/agencies through which world bank uses to assist the needy countries;
The International Bank of Reconstruction and Development(IBRD):
The IBRD lends loans to funds to middle-income counties (countries rating up to $1,506-$5,445) and any
poorer country that is seen as being creditworthy.
The International Development Agency(IDA):
This agency makes loans available to lower-income countries such as countries . Loans
accessed through the IDA are usually interest free but borrowers are required to pay some? administrative fees only, these fees are?usually lower than 1% of the loan applied for.
International Finance Corporation (IFC):
The IFC provides funds mainly for the private sectors usually through 40% equity financing. The
International Finance Corporation (IFC) offers a variety of lanes to the private sectors projects bin
developing countries. To be eligible for such a loan, the interested party must fulfil the following criteria:
1. Be resident in the developing countries
2. Be in the private sector
3. you must be credit worthy
4. the loan terms you are applying for must be such that will Benefit the economy of your community
5. Environmental friendly and must, therefore, pass the IFC environmental standard.
Multilateral Investment Guarantee Agency (MIGA):
The MIGA provides Political risk insures and guarantees to help private investors and lenders. This helps
encourage private investors to invest in Foreign countries.
World Bank Loan ? How World Bank get this funds
The World Bank loan money from capital markets across the world at low-interest rates from which it gets
funds to fund all of its projects. It has a good credit system because it has managed to have well-certified
management reserves.
How To Apply For World Bank Loan
The World Bank ultimately does not give personal loans or loans for medium businesses but the World Bank has been a great source of help to the economies of developing countries thereby affecting the lives of the people on it.
if you are applying for the world bank loan through the International Finance Corporation (IFC),
below is applicable;
The project cycle illustrates the stages a business investment goes through as it becomes an IFC-financed project.
There is no standard application form for IFC financing. A company or entrepreneur, foreign or domestic, seeking to establish a new venture or expand an existing enterprise can approach IFC directly. This is best done by reading?how to apply for financing?and by submitting an?investment proposal.
I trust this piece of article was helpful in a way to guiding you on how you can apply for world bank loan.
My name is waliu shittu, please how can I apply for loan please
The World Bank does not operate like the usual Comercial Banks. You can only access loans through other financial Enterprises that loan money from the IFC.
Mys company in Delhi is setting up a genetic lab in delhi, india. we have already leased a place and have already the technical infrustructure. which is the latest
we need funding for the genetic machines only of approximately 5 crores in indian rupee.how will I proceed
Dr P K Ghosh, cosultant cardiologist apollo hospital, delhi