How To Get A Business Loan In Nigeria Without Collateral – List Of Nigerian Banks Offering Business Loans Without Collateral
Having an idea or a business plan is not as important as having the funds to see it through. One major setback for the growth of SME in Nigeria is the problem of accessing a loan. How to get a business loan in Nigeria without collateral will, therefore, be a welcome relief to many aspiring entrepreneurs as we begin the year 2020. Apart from the lack of enough financial provision by the government for small scale business in Nigeria, the requirement bottleneck is a major setback to most business owners, especially those starting new. Most times the problem of accessing loans for business is lesser than the ignorance of the process of getting the loan.
It is on this note that I will be sharing with you on how to get a business loan in Nigeria without collateral. This becomes important as people get stuck accessing this loan without collateral, no matter how laudable their idea may be.
By the way, what is collateral? Collateral is a pledge or security handed down by a borrower to secure a loan. This is a tangible asset that replaces the loan in the event of defaulting to pay. In other words, the lender takes possession of such an item to reclaim his money, therefore collateral must have the value that is above or good enough to pay back the loan if the borrower is unable to redeem the loan. However, the type of collateral depends on the type of loan accessed.
Precautions To Take Before Seeking For A Loan
There are several ways to access loans for your business including the one that required no collateral. The following are some ways. Sometimes you don’t need to approach a bank or a financial institution or get a loan with interest to finance your project.
- Let the business revolve around you. A close look at the reasons some fresh entrepreneur seeks for the loan is unnecessary. Whether you want to start or thinking of expanding, the first thing to do is building the business around yourself. That means you do most things yourself.
- Do not hire an additional hand, if there is no need for that.
- Make use of capable and qualified members of your immediate family.
- Do not hire additional office if you can make use of your home or compound.
- Do not go into the luxury of office furniture and electronic equipment at the earlier stage of the business.
Best Micro Finance Banks In Nigeria
Micro finance banks are primarily established to assist small and medium businesses to assist in the running of their businesses. One of the benefits of micro finance banks over the commercial bank is less bottleneck and paperwork in operations. Some banks I will list have proved their worth over time by delivering excellent service to their customers. Though they are not arranged in a particular order, their services speak volumes.
- MFP. This is a Sokoto state-based financial institution. The statement of account is updated speedily for each customer to know his or her financial health. They have good human relations and excellent service. One unusually part of this bank is its program for the civil servant. They partner with the state government so the workers can get their salary before the government officially releases their salary.
- Lapo. This microfinance bank is synonymous with traders, especially in Lagos State. Hardly do you get to a community without getting a branch? It is easy to join the bank and get their loans quickly.
- AB Microfinance bank. This is one of the early birds in microfinance banking in Nigeria. Over time they have established themselves in offering cutting-edge services at par with the commercial banks but with low interest.
- FBN microfinance bank. It is an offshoot of the premier bank, First bank. They are on a rescue mission to salvage any business on the verge of collapse. The bank has a strong financial-based backed by an experienced team and exceptional services.
- Addoser microfinance bank. This bank has one of the least interest rates among microfinance banks in the country. Currently, they are over 80,000 loyal and satisfied customers.
- Accion Microfinance bank. The microfinance bank absorbs all kinds of business from small to medium. No loan is too small to process so long it meets the customers’ business needs.
- Rehoboth microfinance bank. They have a loan facility for individuals and groups of people to fund their businesses. No customer ever escapes the watching eyes of the bank. This they do by visiting their customers to know how they and their business are faring. They equally give timely advice on how to run their business effectively.
Best Loan Apps In Nigeria In 2020
The next thing to look at is some of the best App in Nigeria in 2020 to get a loan without collateral.
- Sokoloan. It easy to use. The app allows you to process a soft loan to your bank with a 2-6 monthly repayment plan. You get more loans if you pay the first within the stipulated time.
- L credit. You can access a loan between N5000-N50, 000 and the payment is between 61 to 180 days. All transactions can be done on your phone.
- Branch personal loan. This is an international online loan gateway. Currently, the threshold is N150, 000 in Nigeria. The facility is available round the clock (24hrs)
- Quick check. Sign up free, download the app and you are on your way to getting a loan without collateral. Your interest will depend on the duration of your refund. If you repay your loan before the due date, it enhances your chances of more loans next time.
- Expert option. This app serves over 150 countries having more than 200,000 satisfied customers. They have different loan options and repayment platforms. You can access the platform 24hrs.
- Fair branch. It is an international platform that allows you access loans direct to your bank account including PayPal account. The loan and interest vary according to the country.
- Kiakia. The name in a Nigerian language means a loan at the speed of light. The repayment is convenient and cheap
Banks Offering Business Loan In Nigeria Without Collateral
The following are top Nigerian banks to access loans without collateral.
FCMB. No paper and collateral required to get a loan you can get up to N100,000 loan. Once you are consistent, you can access the loan several times.
STANBIC IBTC LOAN. With this bank, funding your LPO, and invoice discounting is no problem. They have many loan facilities that required no collateral.
ZENITH BANK. Get a loan to finance your equipment import and export, leasing, and LPO. After 6 months you are qualified to apply for the loan. Their overdraft will help you access loans above your credit balance while the LPO loan helps you execute your projects or make the supply to clients.
FIDELITY BANK. (FEALS). This is a fidelity easy asset leasing scheme. The loan plan from fidelity bank is to help the customer obtain a loan to secure home appliances and other conveniences. It allows you to choose your supplier, the loan is flexible, get the loan within two days, and commence repayment plans.
FIRST BANK. This Nigeria premier Bank has over 10 million satisfied customers apart from other facilities the FirstEdus for private school owners helps them upgrade their school business.
From the above information, it obvious you have learned how to get a business loan in Nigeria without collateral simpler than imagined.
Give it a shot and you will be glad you did.
We wish you well in your business journey.