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Top Nigerian Business Loans without Collateral

unsecured business loan in nigeria

Nigeria is one of Africa’s most vibrant countries, with numerous successful businesses. However business in Nigeria can be challenging, as the majority of businesses require collateral before offering a loan.

This can be problematic for startup businesses that may lack collateral. In this blog post, we’ll discuss some of the best no-collateral Nigerian business loans.

In a country where businesses are frequently required to collateralize loans in order to obtain financing, it can be challenging for entrepreneurs to obtain the funds necessary to expand their ventures. However, some lenders will make business loans without requiring collateral, and I’ve compiled a list for you.

What are Business Loans without Collateral?

Business Loans Without Collateral are also referred to as unsecured business loans, which means that a business or startup can obtain loans of varying amounts without pledging assets or collateral to the lender.

Requirements for Nigerian Business Loans without Collateral

The requirements for obtaining an unsecured business loan vary according to the lender or credit company. When applying for a business loan without collateral, some lenders will require certain information such as the incorporation certificate to verify your business with the CAC (Corporate Affairs Commission), the CEO’s name and personal information, and bank account information.

How to Apply for Nigerian Business Loans without Collateral

To apply for a business loan without collateral, you must first locate a bank or credit facility that offers unsecured loans to startups and small businesses; there are numerous banks and private sector companies that offer these in Nigeria, which I will list below.

Then you must consider the interest rate and period of the loan you wish to obtain, as unsecured loan companies and banks charge higher interest rates to cover any unforeseen circumstances.

Where can I apply for an unsecured Business loan?

Acquiring an unsecured business loan without collateral is quite simple in Nigeria these days, as long as your business meets the basic requirements and is approved. The following lending institutions offer business loans without collateral.

Lendigo

Lendigo is a fintech company that provides loans and financing opportunities to small and medium-sized businesses (SMEs).

They affirm that they provide small and medium-sized businesses with rapid and flexible access to working capital without requiring collateral.

They offer loans to retailers and professionals, as well as merchants of general merchandise such as electronics, computing, phones, fashion and apparel, and household goods.

Eligibility

Lendigo does not offer large amounts to new businesses attempting to use their credit program for the first time; there are requirements and eligibility criteria that your business must meet in order to access large amounts. These requirements and eligibility criteria include the following:

  1. Your business has been operational for at least one year.
  2. Your business can demonstrate a monthly revenue of at least N250,000.
  3. You have a spotless credit record.

Lendigo Loan Offers

Lendigo provides business loans without collateral ranging from N300,000 to N10,000,000.

Lendigo Loan Duration

The repayment period for a Lendigo Loan is between one and six months.

Lendigo interest and fees

Lendigo charges a 1% processing fee and interest rates begin at 4.75 percent per month.

How to apply for Lendigo Loan?

If you are interested in applying for a lendigo business loan follow the steps below;

  1. To apply visit their official website.
  2. Sign up for an account
  3. Create a profile and submit required documents.
  4. Apply for a loan, get approved and receive your loan in your bank account provided.

SukFin

SukFin is a loan company that connects lenders and SME’s, Entrepreneur through their platform. They provide a variety of loan services, including unsecured loans. They have loan packages for both new and established businesses, with a minimum loan of N100,000 available.

Eligibility

To be eligible for a loan on SukFin, you must submit complete documentation of your business. After that, you can apply for a loan as long as you can sufficiently prove that you can afford the loan and that your business plan is sound. Your loan should be approved.

SukFin Loan Offers

SukFin provides loans to businesses, entrepreneurs, and startups ranging from N100,000 to N5 million.

SukFin Loan Duration

The repayment period for a SukFin Loan is between 1 – 12 months.

How to apply for SukFin Business Loan?

To apply for a SukFin Loan follow the steps outlined below;

  1. Visit their official website.
  2. Sign up as a startup or established business.
  3. Provide required details and documents.
  4. Apply for a business loan, get approved and get paid to the account number you provided.

Fairmoney Business Loan

Fairmoney is a popular microlending platform in Nigeria that provides unsecured business loans at a rapid pace. They are well-known and have a high online rating. You don’t have to worry about paperwork with Fairmoney because everything is done online.

Eligibility

To be eligible for a Fairmoney Loan, you must first sign up through their mobile app, which can be downloaded from the Playstore or the App Store. After signing, proceed to apply for a loan and submit all required details, then state your reason for a loan, which should be Business in order to access a larger loan amount.

Fairmoney Loan Offers

SukFin provides loans to businesses, entrepreneurs, and startups ranging from N100,000 to N1 million instantly.

Fairmoney Loan Duration

The repayment period for a Fairmoney Loan is between 1 – 6 months.

How to apply for Fairmoney Loan

To apply for a Fairmoney Loan follow the steps provided below;

  1. Download the Fairmoney app from Google Play Store or Apple App Store.
  2. Sign up as a member
  3. Provide required details and documents.
  4. Apply for a business loan, get approved and get paid to the account number you provided.

Standard Chartered Bank

Nigeria Deposit Money Bank, Standard Chartered Bank offers a one-of-a-kind loan package for businesses that do not require collateral.

This loan service is known as Smart Business Loan (SBL), and it was designed to assist startups and small and medium-sized businesses in obtaining unsecured loans up to N20,000,000.

Eligibility

Smart Business Loan is open to both new and returning customers. Eligibility is determined solely by the verification of business documentation and the performance or turnover of the business.

Loan Duration

Standard Chartered Bank Smart Business Loans generally have a maximum repayment of 24 months.

Loan Fees

When obtaining a business loan without collateral, Standard Chartered Bank charges some fees and interest. For more information, please contact the nearest branch.

How to apply for a Standard Chartered Bank Loan?

To apply for a loan from Standard Chartered Bank you will have to visit the nearest branch closest to you to apply.

Union Bank

Union Bank provides a variety of unique SME loans in Nigeria; their loans cover all industries, and they provide unsecured business loans without collateral to entrepreneurs and businesses. I recommend that you apply for the Union Bank Cash Flow Lending Loan program, which allows you to borrow up to N10,000,000 and is available to both registered and unregistered businesses.

Eligibility

To be eligible for a Union Bank business loan without collateral, you must provide the following documents.

  • Copy of Corporate Affairs Commission (CAC) registration certificate.Invoice for goods to be purchased-if applicable.
  • Executed Board resolution to borrow and detailing who will operate the account/ loan (for limited liability companies only)
  • Evidence of tenancy / ownership of business location (this includes copies of rent receipts, title documents etc.)

Loan Duration

The repayment period for a Union Bank business loan ranges from 1 to 24 months.

Loans Fees

When obtaining a business loan without collateral, Union Bank charges some fees and interest. For more information, please contact the nearest branch.

How to apply for a Union Bank Loan?

To apply for a loan from Union Bank you will have to visit the nearest branch closest to you to apply.

Benefits of Nigerian Business Loans without Collateral

Below are the benefits of loans without collateral.

  1. Unsecured loans are Stress free when applying.
  2. Wait time is minimal as you won’t have to wait for a longer period to get credited to your bank account.
  3. No collateral or security which makes it good for business startups.
  4. Less Paperwork

Drawbacks of Nigerian Business Loans without Collateral

  1. High interest rate
  2. Short Repayment Circle usually between 6-12 months which serves as security to the lender.
  3. Business Credit history is a major factor.
  4. It may require a personal guarantee from a director.

Conclusion

There are other banks or companies that offer SME loans without collateral, but these banks were handpicked by me because the loan amount and repayment schedule are manageable, unlike other banks that offer repayment between 90 days.

These loans are appropriate for entrepreneurs or businesses in the fields of technology, beauty, small-scale farmers, schools, and so on.

Thank you for taking the time to read this article; if you enjoyed it, please share it with your colleagues and business partners.

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