Top 25 Business Loans in Nigeria Without Collateral

Top 25 Business Loans in Nigeria Without Collateral

Introduction

Access to capital is a critical challenge for small and medium enterprises (SMEs) in Nigeria, particularly for startups and businesses lacking tangible assets for collateral. Fortunately, several financial institutions, including commercial banks, microfinance banks, and fintech platforms, offer collateral-free loans to support entrepreneurs. This article outlines the top 25 business loan options in Nigeria that do not require collateral, focusing on their features, eligibility criteria, and application processes. These loans are designed to empower SMEs, promote economic growth, and address the funding gap for businesses in Nigeria.

Loan Options

Below is a curated list of 25 business loan providers in Nigeria offering collateral-free financing, based on their accessibility, loan amounts, repayment terms, and suitability for SMEs. Note that interest rates, repayment periods, and eligibility criteria vary, and applicants should carefully review terms before applying.

  1. First Bank of Nigeria – SME Loan
    • Description: First Bank offers collateral-free loans to SMEs to support growth and operations, requiring only a psychometric test and a solid business plan.
    • Loan Amount: Up to N10 million
    • Interest Rate: 5–9% per annum
    • Repayment Period: Up to 3 years
    • Eligibility: Registered business, business plan, and psychometric test.
    • Application: Apply at a First Bank branch or online via their SME portal.
  2. Bank of Industry (BOI) – MSME Intervention Program
    • Description: BOI provides single-digit interest loans to support SMEs across various sectors, with no collateral required for certain schemes.
    • Loan Amount: Up to N75 million
    • Interest Rate: 5–9% per annum
    • Repayment Period: Up to 5 years
    • Eligibility: Registered business, detailed application with business plan.
    • Application: Submit forms and business plan via BOI’s website or state offices.
  3. Kuda Business Loan
    • Description: Kuda offers invoice and purchase order financing without collateral, based on verified invoices or orders.
    • Loan Amount: Up to N5 million
    • Interest Rate: Competitive, varies by cash flow
    • Repayment Period: Flexible, aligned with cash flow
    • Eligibility: Active Kuda Business account, verified invoices/orders.
    • Application: Apply via the Kuda Business app.
  4. Advans Nigeria – SME Loan
    • Description: Advans provides quick loans for SMEs with flexible repayment and no prior savings required.
    • Loan Amount: Up to N150 million
    • Interest Rate: Affordable, varies by loan size
    • Repayment Period: Up to 18 months
    • Eligibility: Registered business, proof of income.
    • Application: Apply via the Adspire app or at Advans branches.
  5. Zedvance – SME Loan
    • Description: Zedvance offers collateral-free loans for business expansion with a simple application process.
    • Loan Amount: Up to N5 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 18 months
    • Eligibility: Registered business, bank statements, BVN.
    • Application: Apply online via Zedvance’s website.
  6. Carbon – SME Loan
    • Description: Carbon provides digital loans for SMEs with no collateral, focusing on creditworthiness.
    • Loan Amount: Up to N20 million
    • Interest Rate: 2–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Active bank account, verifiable income.
    • Application: Apply via Carbon’s mobile app.
  7. SMEDAN Loan
    • Description: The Small and Medium Enterprises Development Agency of Nigeria offers government-backed loans to SMEs without collateral.
    • Loan Amount: Up to N5 million
    • Interest Rate: 5–9% per annum
    • Repayment Period: Up to 3 years
    • Eligibility: Registered SME, SMEDAN certificate.
    • Application: Apply through SMEDAN’s portal or local offices.
  8. Kiakia Loans
    • Description: Kiakia uses psychometric testing and big data to provide fast loans without collateral.
    • Loan Amount: Up to N5 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Business registration, BVN, credit assessment.
    • Application: Apply via Kiakia’s website or app.
  9. Lidya
    • Description: Lidya offers digital loans for SMEs based on cash flow and creditworthiness, with no collateral required.
    • Loan Amount: Up to N10 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Active business account, 6 months of bank statements.
    • Application: Apply online via Lidya’s platform.
  10. Oze Business Loan
    • Description: Oze provides collateral-free loans through its app, requiring only bank statements and a free account.
    • Loan Amount: N20,000–N25 million
    • Interest Rate: Competitive, varies by loan size
    • Repayment Period: Up to 12 months
    • Eligibility: Registered business, linked bank account.
    • Application: Apply via the Oze app.
  11. Pennee – SME Loan
    • Description: Pennee offers asset financing, overdrafts, and inventory financing without collateral.
    • Loan Amount: N20,000–N25 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Business registration, bank statements.
    • Application: Apply via Pennee’s app.
  12. Lendigo – SME Loan
    • Description: Lendigo provides loans for e-commerce merchants and auto dealers based on sales data, without collateral.
    • Loan Amount: Up to N10 million
    • Interest Rate: Competitive, varies by sales volume
    • Repayment Period: Up to 12 months
    • Eligibility: Active e-commerce or dealership account.
    • Application: Apply via Lendigo’s website.
  13. Baobab Microfinance Bank – Micro+ Loan
    • Description: Baobab offers collateral-free loans for SMEs with quick disbursement.
    • Loan Amount: N1 million–N150 million
    • Interest Rate: Competitive, varies by loan size
    • Repayment Period: 6–18 months
    • Eligibility: Operational business in supported states, verifiable income.
    • Application: Apply at Baobab branches or online.
  14. ALAT by Wema – SME Loan
    • Description: ALAT offers digital SME loans with minimal documentation and no collateral.
    • Loan Amount: Up to N10 million
    • Interest Rate: 5–9% per annum
    • Repayment Period: Up to 3 years
    • Eligibility: ALAT or Wema account, business registration.
    • Application: Apply via the ALAT app.
  15. Stanbic IBTC – SME Loan
    • Description: Stanbic IBTC provides tailored SME loans with quick turnaround and no collateral for eligible businesses.
    • Loan Amount: Up to N10 million
    • Interest Rate: 5–9% per annum
    • Repayment Period: Up to 24 months
    • Eligibility: Registered business, cash flow evidence.
    • Application: Apply via Stanbic IBTC’s website or branches.
  16. Union Bank – SME Loan
    • Description: Union Bank offers collateral-free loans for SMEs with flexible repayment terms.
    • Loan Amount: Up to N50 million
    • Interest Rate: 5–9% per annum
    • Repayment Period: Up to 12 months
    • Eligibility: CAC registration, business account.
    • Application: Apply at Union Bank branches or online.
  17. AB Microfinance Bank – Micro Loan
    • Description: AB Microfinance provides quick loans for SMEs with no collateral, focusing on transparency.
    • Loan Amount: N15,000–N5 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 18 months
    • Eligibility: Operational business, on-site assessment.
    • Application: Apply at AB Microfinance branches.
  18. Paylater (by Carbon)
    • Description: Paylater offers short-term loans for SMEs and individuals without collateral.
    • Loan Amount: Up to N500,000
    • Interest Rate: 2–5% per month
    • Repayment Period: Up to 6 months
    • Eligibility: BVN, bank account, credit history.
    • Application: Apply via the Paylater app.
  19. QuickCheck
    • Description: QuickCheck provides instant loans with no collateral, ideal for urgent business needs.
    • Loan Amount: N10,000–N1 million
    • Interest Rate: 2–5% per month
    • Repayment Period: 15–30 days
    • Eligibility: Registered business, BVN, bank account.
    • Application: Apply via the QuickCheck app.
  20. C24 Capital
    • Description: C24 Capital offers quick business loans with no collateral and competitive rates.
    • Loan Amount: Up to N5 million
    • Interest Rate: 2–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Business registration, verifiable income.
    • Application: Apply online via C24 Capital’s website.
  21. Sycamore
    • Description: Sycamore provides flexible business loans through a digital platform, with no collateral required.
    • Loan Amount: Up to N5 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Active business account, BVN.
    • Application: Apply via the Sycamore app.
  22. NewCredit
    • Description: NewCredit offers fast SME loans with flexible repayment and no collateral.
    • Loan Amount: Up to N5 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Business registration, bank statements.
    • Application: Apply via the NewCredit app.
  23. Branch
    • Description: Branch provides instant loans with no collateral, using a simple sign-up process.
    • Loan Amount: Up to N1 million
    • Interest Rate: 2–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: BVN, active bank account.
    • Application: Apply via the Branch app.
  24. Lendha
    • Description: Lendha offers instant business loans for SMEs with no collateral, focusing on growth and scalability.
    • Loan Amount: Up to N10 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 12 months
    • Eligibility: Registered business, cash flow evidence.
    • Application: Apply via Lendha’s website or app.
  25. SukFin – Unsecured Loan
    • Description: SukFin matches SMEs with lenders offering collateral-free loans tailored to business needs.
    • Loan Amount: Varies, up to N50 million
    • Interest Rate: 3–5% per month
    • Repayment Period: Up to 24 months
    • Eligibility: Registered company, business bank account.
    • Application: Apply online via SukFin’s platform.

Key Considerations

  • Interest Rates: Collateral-free loans often have higher interest rates (2–5% per month for fintechs, 5–9% per annum for banks) due to increased lender risk. Always compare rates and terms.
  • Eligibility: Most providers require business registration, a verifiable business account, and proof of cash flow or income. Some may request BVN or psychometric tests.
  • Repayment Terms: Fintech loans typically have shorter repayment periods (6–18 months), while banks and government-backed loans offer longer terms (up to 5 years).
  • Risks: Providing BVN or account access to online lenders may pose privacy risks. Ensure platforms are CBN-licensed or FCCPC-registered.
  • Application Process: Digital platforms (e.g., Kuda, QuickCheck) offer faster approvals (1–3 days), while banks like First Bank and BOI may take longer due to additional documentation.

Recommendations

  • For Startups: Consider fintech options like QuickCheck, Carbon, or Lendha for quick access to smaller loans (N500,000–N10 million).
  • For Established SMEs: Explore BOI, First Bank, or Stanbic IBTC for larger loans (up to N150 million) with lower interest rates.
  • For E-commerce/Dealers: Lendigo’s loans based on sales data are ideal for merchants on platforms like Jumia.
  • Due Diligence: Verify lender credibility, read terms carefully, and ensure repayment aligns with your cash flow to avoid default.

Conclusion

Collateral-free business loans in Nigeria provide a lifeline for SMEs, enabling entrepreneurs to start, expand, or sustain their ventures without pledging assets. From government-backed programs like BOI and SMEDAN to innovative fintech solutions like Kuda and Zedvance, these 25 options offer diverse financing opportunities. By selecting a loan that matches your business needs and ensuring timely repayments, you can leverage these funds to drive growth and contribute to Nigeria’s economic development.

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