Whether you’re running a start-up or an already established business, funding is one of the most important factors that determines success. Every business needs money for operations and fixed assets.
But the truth is, raising all the funds needed to grow a business until it becomes profitable isn’t always possible.
Luckily, with the right business loan, you can secure enough capital to keep your business running. Even better, several options don’t require collateral.
Below is a detailed look at how to get a business loan without collateral in Nigeria.
SME Loans Without Collateral in Nigeria
While informal sources of funding exist, banks are often the safest choice for small and medium-sized businesses. Venture capital and development banks rarely support early-stage ventures, but some Nigerian banks offer collateral-free loans with the right plan.
Wema Bank
Wema Bank allows customers with salary or current accounts to access loans without collateral. The maximum loan amount is either ₦2 million or seven times the borrower’s net monthly salary. Loans are disbursed within two days, available only to those with a steady income.
Stanbic IBTC
Stanbic IBTC, part of Standard Bank Group, offers both personal and business loans, even to customers without salary accounts. Repayment is done in monthly instalments over one to five years.
First City Monument Bank (FCMB)
FCMB offers several collateral-free options such as Salary Top-Up Loans, Premier Salary Loans, Auto Loans, and Fast Cash Loans. The Fast Cash loan can be accessed instantly through a USSD code.
Fidelity Bank
Fidelity Bank’s Easy Asset Leasing Scheme allows customers to obtain business and personal loans without collateral. Borrowers can use the funds to acquire vehicles, appliances, laptops, generators, and other assets. Approval takes about two days.
First Bank
First Bank offers the FIRST EDU loan to private school owners with at least 100 students. Applicants must have operated a First Bank account for at least nine months, and the school must be registered with the Corporate Affairs Commission. The maximum loan amount is ₦10 million.
Zenith Bank
Zenith Bank provides various SME loan schemes, including the LPO financing program that allows businesses to buy materials without collateral.
UBA
UBA offers the “No Wahala” loan and personal overdraft services for both individuals and businesses. Funds can be used for urgent needs such as medical bills or car repairs.
Access Bank
Access Bank’s Quick Bucks app allows users to apply for loans quickly at low-interest rates, all from their mobile devices.
GTBank
GTBank’s Quick Credit offers instant access to loans up to ₦5 million, credited to your account within two hours of approval. Applications can be made via USSD code without paperwork.
Best SME Loan Platforms in Nigeria
Renmoney
Renmoney provides easy-to-access loans for small businesses and employed individuals aged 22–59 with a bank account. Borrowers can access up to ₦6 million, repayable within two years.
QuickCheck
QuickCheck is an online lending platform that offers fast loans without paperwork or collateral. Borrowers can access up to ₦200,000, repayable in short instalments.
KiaKia
KiaKia, a fintech company, provides business and personal loans as well as peer-to-peer lending services. Minimum loans start at ₦50,000 with a 3.5% monthly interest rate.
The Government Enterprise Program
Launched in 2016, this initiative provides interest-free loans to traders, artisans, and farmers. Applicants can access up to ₦350,000, repayable over three to six months.
GroFin
GroFin supports small businesses across 15 African and Middle Eastern countries, including Nigeria. Loan amounts range from $100,000 to $1.5 million.
Palmcredit
Palmcredit offers online loans for small business owners, up to ₦100,000, repayable within three to six months at interest rates between 14% and 24%.
SMEFunds
SMEFunds supports African entrepreneurs through ethical financial solutions and social investment programs aimed at reducing poverty and building sustainable enterprises.
Lendigo
Lendigo offers quick online loans without paperwork. Approval usually takes two days, with flexible repayment options.
UBA SME Loans
UBA also supports businesses in sectors such as education, food, entertainment, green economy, and retail trade. They provide both business and school loan programs.
Baobab
Baobab offers small business loans ranging from ₦20,000 to ₦50,000, processed within three days and repayable over one to two years.
Union Bank
Union Bank, one of Nigeria’s oldest institutions, provides flexible loans suitable for various small businesses, with an emphasis on building strong credit history.
SME Intervention Funds in Nigeria
Small and medium enterprises play a major role in Nigeria’s economy. To support them, the government has created several intervention funds.
Development Bank of Nigeria (DBN)
DBN provides loans through participating financial institutions to relieve funding challenges faced by SMEs. It works with partners like the World Bank to increase access to credit.
Agric Small and Medium Enterprise Investment Scheme (AGSMEIS)
This program supports agro-based businesses and creates jobs in agriculture. Loans of up to ₦10 million are available at 5% interest per annum.
Bank of Industry (BOI)
BOI offers reliable funding for micro, small, and medium enterprises, helping them expand and create jobs across Nigeria.
CBN Creative Industry Fund
This Central Bank of Nigeria initiative supports young entrepreneurs in the creative sector, promoting industrial and employment growth.
Lagos State SME Loan
The Lagos State Employment Trust Fund (LSETF) offers loans to small and medium businesses to help them grow and create employment opportunities.
Central Bank of Nigeria SME Loans
The CBN established the Small and Medium Enterprise Credit Guarantee Scheme (SMECGS) to provide accessible funding and promote industrialization in Nigeria.
Loans Without BVN in Nigeria
Some lenders in Nigeria offer loans without requiring a Bank Verification Number (BVN). While most financial institutions use BVN for verification, there are still options for borrowers who don’t have one.
Examples include Branch Loan, Xcredit, Zedvance, Lcredit, Quickteller, and Renmoney. These lenders may instead require valid identification, phone numbers, or account details.
Loans for Unregistered Businesses
Many small businesses operate without registration due to limited funds. Fortunately, some lenders provide financial assistance to such enterprises.
Platforms like Aella Credit, QuickCheck, and Renmoney offer loans to business owners even if they are not registered with the Corporate Affairs Commission.
Instant Online Loans in Nigeria
With the rise of fintech, many online platforms now provide instant loans within 24 hours of application.
Popular options include Renmoney, Carbon, Branch, Fairmoney, Aella Credit, Migo, Kiakia, QuickCheck, C24, Fint, Specta, Jumia, and Opay.
Loans for Start-Up Businesses in Nigeria
New entrepreneurs often struggle with funding at the early stage. Several organizations offer loans specifically for start-ups.
KiaKia.co
KiaKia provides fast digital loans to entrepreneurs looking to launch their businesses.
One-Fi
One-Fi offers short-term credit facilities for start-ups and small businesses.
GroFin
GroFin also funds start-ups and small businesses through tailored short-term loans.
Article updated 3 weeks ago. Content is written and modified by multiple authors.
