Friday, February 23, 2024
Home » Business » How To Get A Business Loan Without Collateral In Nigeria?

How To Get A Business Loan Without Collateral In Nigeria?

by NaijNaira
0 comment
How To Get A Business Loan Without Collateral In Nigeria

Do you know how to get a business loan without collateral in Nigeria?

Whether it is a Start-up or the usual mainstream business, funding is one of the essential factors that will determine your success. You will need funds for both operational and fixed costs.

The reality, however, is that having all the funds you need to scale your business until it reaches break-even and starts yielding profit may not be possible.

Fortunately, with the right Business Loan, you could get just enough capital to see your business through.

While this is great on its own, it only gets better when you can actually get these loans without signing off collateral.

This article will outline how to get a business loan without collateral in Nigeria.

How to get a business loan without collateral in Nigeria


While there are many informal sources where you can get loans to start your business, the Banks seem to be the safest options to turn to at the beginning stages.

Venture Capitals and Development banks are not attracted to beginning stages of businesses.

However, with a good plan, some Nigerian Banks will get you going.


With a savings account or a salary, current account customers can get a loan quickly from Wema bank without collateral.

The maximum amount to be loaned to their customers is two million Naira or the person’s net monthly salary multiplied by seven.

It takes two days for the customers to receive the loan, and the loan is only available for people who have a job.

Stanbic IBTC

The standard bank group is another bank in Nigeria that provides customers with personal or business loans.

One of the few banks in Nigeria that can give loans to customers who do not operate a salary account.

The customer only needs to pay back the loan in monthly instalments within one to five years.

First City Monument Bank (FCMB)

First City Monument Bank is one of the leading banks in Nigeria that provide customers with multiple options of a no collateral loan such as salary top-up loan, Premier salary loan, Auto loan, and Fast cash loan.

Customers can access the Fast cash loan instantly by dialling a USSD code.

Fidelity Bank

Fidelity Bank is an SME-friendly bank that has won several awards.

The Fidelity Easy Asset leasing scheme that the bank operates allows its customers to access personal and business loans without collateral.

This loan scheme also will enable customers to use the loan to acquire brand new vehicles, household appliances, laptops, generators, inverters, and so many others.

The loan is usually approved within two days.


First bank is a commercial bank in Nigeria with over 10 million active accounts.

The bank provides customers with the FIRST EDU loan, which can be assessed by private school owners who have a 100 student population or more.

However, the private school owners must have used their first bank account for 9months.

The private school must also be registered with the corporate affairs commission. The loan is a maximum amount of 10 million Naira.

Zenith bank

Zenith bank provides SME with various types of loans.

So no matter your business needs, there is a loan scheme that would suit you.

For example, one of their loan schemes, LPO, can be accessed by businesses to purchase materials for their business without the need for collateral.

United Bank for Africa (UBA)

UBA provides individuals or businesses with a personal overdraft order or the popular no wahala loan.

The no wahala loan allows you to get a loan to fix your immediate needs or emergency.

You can choose to use it to pay for your medical bills or repair your car.

However, you will decide how to spend the loan.

Access Bank

The Access bank uses a mobile app called the Access bank Quick Bucks to give out loans with low-interest rates. The process is very swift after you have installed the app.

GT Bank

GT Bank offers customers a quick and fast loan called the GT bank Quick Credit. It only takes two hours after approval for the loan to be in your bank account.

Another thing that makes the loan more interesting is that you can apply for it through a short code, and you do not need some documents or paperwork for the loan process.

The maximum loan amount you can access through the GT bank Quick Credit is 5 million Naira.


Here are some of the best loans in the country that platforms to get SME loans in Nigeria.


Renmoney is topping the chart as the best SME loan platform as they have allowed so many SMEs to access funds in a very convenient manner. The loan application process is very easy, and this is one of the things that makes them stand out.

The loan can be accessed by people between the ages of 22 and 59 who have a savings or current account with a commercial bank.

They must have a job and reside within the cities where the Renmoney company operates.

The maximum amount of loan that their customers can access is 6 million, and it is to be paid within two years.


This is an online platform that helps provide financial support to new, established businesses or employees quickly and conveniently.

Customers do not need paperwork or collateral to access the loan.

The company says that they provide customers with excellent customer service and confidentiality.

Employees and small business owners can assess a maximum loan amount of two hundred thousand Naira.


KiaKia is a non-banking financial, technological company that offers business owners and individuals loans.

They also have a platform where money-savers can lend money for an agreed interest rate.

Kiakia’s minimum loan amount is 50,000 with a 3.5% monthly interest rate.

This technological company aims to provide support for small businesses that can grow.

The Government Enterprise

This government empowerment initiative provides farmers, traders, and artisans with a loan without interest rate or collateral. This program started in 2016 to better the lives of Nigerians by providing them with an easy-to-pay loan.

The organization has agents in various markets with mobile devices across the country.

They carry out a registration process for those interested in the loan, and their applicants can have access to 350,000 with a repayment period of three to six months with an addition of two weeks if the debtor needs more time.


Grofin provides businesses with an integrated solution and financial support.

They offer financial aids to business owners in 15 African countries and the middle east. They claim to have loaned businesses $365 million to 735 small business investments and 9630 entrepreneurs. They have been funded with $535 million by private funders, international financial institutions, and development establishments to help fund businesses.

To be eligible for the loan, you must have a business in Nigeria, Rwanda, Kenya, Iraq, Zambia, Oman, Ghana, South Africa, Egypt, Uganda, Ivory Coast, and Jordan.

Their customers can access a maximum loan amount of 100,000 dollars and 1.5 million dollars to help generate more profits for their businesses.


Palmcredit is an online loan platform that provides loans to SME’s in Nigeria.

Small business owners can receive up to 100,000 naira to expand their business. Intending business owners can also get the same amount to help fund their business plan.

However, when you pay off the debt on time, they will update your credit score to access bigger loans.

The loans are to be repaid from 3 to 6 months, and their interest rate is 14% to 24%.

To be eligible to collect the loan, you must be up to 18 years old.

Palm Credit have promised that they will incorporate a seamless type of SME loan process that Nigerians can actually benefit from.


SMEFUNDS is a financial initiative to end poverty in Africa. They help speed up finance flow with the help of social investment and ethical financial intermediation solutions to promote sustainable enterprise development.

They provide businesses or intending businesses with capital to help bring their ideas to life and turn it into thriving firms to help improve the lives of the beneficiaries.


Lendigo is an online platform that allows individuals to access business loans without visiting their office or paperwork. They give you access to the loan in 2 days with flexible repayment terms. If you pay on time, you can get a higher loan whenever you want.


The UBA Group provides financial support to businesses in Nigeria.

They offer business owners or intending business owners the finance required to support their business idea.

To be eligible for the loan, your business must be in any of these sectors: Recreational and entertainment sector, green economy, educational institution, food and drink, exports, fintech, wholesale and retail trading, and many more.

However, they also provide customers with school loans.


Baobab is a company that provides loans for Nigerian SMEs in an effortless manner to help them grow their businesses.

The maximum loan amount they can give is 50,000 naira, while their minimum loan amount is 20,000 naira, and it takes three days for you to get the loan.

However, the loan should be paid back within 30 days or two years.

Union bank

Union bank is one of the oldest banks in Nigeria that provides one of the best loans for small businesses.

The loan is very flexible and can suit your business expectations as it has no type of restriction of the kind of business it will benefit from.

However, you have to follow through with the payment plan to give you a good credit score.


Small and medium enterprises are business initiatives individuals or corporate bodies embark on by coming together.

Most times, businesses like this need funding to be established to a greater extent.

Getting their business funded through loans and equity is a major way for SMEs.

There have been some innovations put in place by the government to generate funds for SMEs, encouraging entrepreneurship and wealth making.

These programs are the establishment of small and medium intervention funds.

The government has other means two of funding SMEs.

Unfortunately, only a few small and medium enterprise owners know about these means of business funding.

A list of SME intervention funding includes:

Development Bank of Nigeria Loans

Development bank of Nigeria loans is one of the established intervention funds systems for small and medium enterprises.

DBN is set basically to relieve small and medium micro-business owners of the issues or constraints they face.

The Development Bank of Nigeria, established by the federal government, is affiliated with other global financial bodies, including the world bank, to help SME entrepreneurs stand the storm of difficult business funding.

To get the intervention fund from the Development Bank of Nigeria, you must be involved in a viable enterprise and be a customer of a certified financial institution.

DBN loans are gotten through PFIs, which require application through your account.

Agric Small Medium Enterprise Investment Scheme (AGSMEIS)

This is another intervention fund put in place by the federal government of Nigeria to help facilitate the efforts of agro-based businesses.

It also increases the level of employment opportunities in the Agricultural sector.

This intervention fund system disburses up to N10 million at the rate of 5% per annum. This system, if funding SMEs has helped to increase the business capacity and employment in the Agricultural sector.

Bank of Industry Intervention Funds

The Bank of Industry of intervention funds is one of Nigeria’s most reliable intervention funds systems.

Being the largest and oldest, it has successfully met the needs of micro, small, and medium businesses owners.

The institution is mainly in the business of providing financial aid to Nigerian business owners, consequently increasing employment opportunities and transforming the Nation’s business sector.

CBN Creative Industry Fund

This is the newly established system of intervention funds for small and medium enterprises created by the federal government.

You can access this system through the Central Bank of Nigeria.

The innovation that has just been developed is only at the of improving the Nation’s industrial sector by empowering youths, creating vast employment opportunities.


The Lagos State funding system is implemented to enable small and medium businesses. The aim is to alleviate the problems faced by intending entrepreneurs in establishing their businesses.

They make loans accessible to small businesses, providing growth, expansion, and wealth creation opportunities.

The state has an established loan program called the Lagos State Employment Trust Fund.

LSETF was established to provide loans to small and medium business owners creating room for employment opportunities in the Nation.

Central Bank of Nigeria SME Loans

Small and medium enterprises are vital in the economic development of a Nation. This is the reason the central bank of Nigeria has taken steps in making funds available and accessible to small and medium business owners.

This innovation is to help business owners have less or no issues with poor funding and lack of managerial capacity in business.

Most times in the country, the commonest problem faced is low funding and lack of infrastructure.

These cost has kept many intending entrepreneurs in the stage unreality.

The Central Bank of Nigeria has an intervention fund system, the Small and Medium Enterprise Credit Guarantee Scheme (SMECGS), created to promote accessible credit facilities to small and medium business owners.

They also help to facilitate the industrialization of the country.


Many people, especially small business owners, have projects that they need loans to fund. Many are searching for loans without Bank Verification Number (BVN) in this quest.

Using BVN for loan collection is an essential requirement in Nigeria, especially for most online institutions that offer loans.

As a matter of fact, you hardly find financial institutions online that offset loans in Nigeria that don’t require BVN or at least equivalent collateral.

Notwithstanding, there are possibilities of getting loans without a Bank verification number.

So if you are asking if one can get a loan without BVN in Nigeria, the answer is yes.

You can even apply and get loans within a day of application.

Some of the loans that do not require BVN require other essential requirements such as ID, phone numbers, Account numbers, e.t.c.

Some of the institutions giving loans include Branch loan, Xcredit loan, Zedvance loan, Lcredit loan, Quickteller loan, and Renmoney loan e.t.c.


Have you got an unregistered business, or do you know any who manages one and it needs funding?

As said earlier, the major issue faced by small and medium business owners is insufficient funding and poor infrastructures. These two are essential key factors for growth and establishment.

These business barely have enough capital to scale their business from scratch up to when it becomes a full establishment.

Even if they manage to scale independently, there is barely enough capital to spare for the registration.

This is why a loan is sought, which births the question, are there loans for unregistered businesses?

Yes, there are loan options for businesses not registered with the Corporate Affairs Commission (CAC).

However, many small business owners prefer the borrowing method as there is sometimes no equivalent collateral for loan collections from financial institutions.

There has to be sufficient funding for any business to thrive in the market; no funds are not an option.

Of course, it is no certainty that the presence of funds is a guaranty for business success, but insufficient funds will lead to a failed business.

You may not have to necessarily register your business to obtain loans from financial institutions, as there are many apps and other financial bodies that offer loans to owners of unregistered businesses.

Some of the institutions that are in the business of assisting unregistered small and medium scale businesses that are not registered include Aella credit, QuickCheck, Renmoney, e.t.c.


In Nigeria, there are several online loan platforms, and they will always be on the increase due to the rise in new business innovations.

With these increases, you can now get loans within 24 hours after applications from different loan apps.

A plethora of these online loan apps allow you acquire loans conveniently without any unnecessary issues.

And while using these loans apps, there is a reduced issue of Bank verification numbers. 

The list includes Loanspot, Renmoney, Carbon, Branch, Aella Credit, Fairmoney, Migo, Lidya, Kiakia, Social Lender, QuickCheck, C24 Loan, Fint Loan, Specta Loan, Jumia Loan, Opay Loa.


Many entrepreneurs, especially the first-timers in the business market, need funds for their start-ups.

Small and medium enterprise owners seek loans for their business start-ups, and many financial institutions assist new entrepreneurs.


KiaKia is a digital financial platform that offers money to starting entrepreneurs to kick start their businesses. KiaKia is a to run a word that means fast fast, which depicts how efficient and quick they respond to loan to start-up business owners.


ONE-FI is a credit facility company that gives financial aid to start-up business owners by providing short-term loans.

They make loans accessible to all individuals of small and medium large-scale business enterprises.


Griffin is another platform that provides loans to small and medium business owners to finance their business.

They also make available short-term loans to individuals interested in getting funds to start their business.


This guide has outlined how to get a business loan without collateral in Nigeria and the different schemes available for some sectors to help you optimize your funding options.

This article was updated 1 month ago


Copyright © – 2024 CIV DigiTech Media Ltd. All Rights Reserved