Nigerian Banks That Gives Business Loans Without Collateral (2024)

So you’re wondering how to get a business loan in Nigeria without collateral. This article will tell you about the best Nigerian banks that will give you a business loan with no collateral. Please keep in mind that the success of any business venture is not dependent on bank loans; rather, what matters most are the business administrative styles, cash flow management, effective marketing strategies, and customer satisfaction.

best banks in nigeria

If you’re looking for a loan for a business startup, a personal loan, or a car loan in Nigeria, you should contact your preferred online or offline lender and fill out their loan request forms. You might be able to find suitable business funding sources in Nigeria. Yes! It is true that most Nigerian Small and Medium-sized Enterprises (SMEs) struggle to start and grow their businesses due to a lack of access to business funding.

In fact, due to bureaucratic bottlenecks, one of the major reasons that often kills great business ideas and perhaps the dreams of most Nigerian entrepreneurs is their inability to meet the requirements of obtaining a bank loan or accessing government loans or grants. “Cash is cow and no business can run without it.”

Today, we’ll look at how to get a business loan in Nigeria without any collateral from a bank.

Banks, whether commercial, industrial, or development banks; online or micro finance banks – offer the lowest interest rates for SMEs in Nigeria. Banks typically charge 5-25 percent interest (or more) on 1-5 year short-to-long term business loans. Depending on the scope of your business, you can obtain bank loans as small as ₦50,000 and as large as ₦100,000,000 in Nigeria.

However, if you plan to raise business capital through banks, keep in mind that bank loans are typically secured, so you’ll need to provide collateral before you can be considered for a loan approval. Interestingly, some Nigerian banks have recognized that most start-up entrepreneurs in Nigeria have only solid business ideas and no collateral to show for their loans.

Some of them are now willing to provide startup business owners and entrepreneurs with a specific amount of money in the form of business loans with no collateral. This effort could be part of these banks’ initiatives to support growth in Nigeria’s SME subsectors by providing small to long-term loans to businesses or organizations in need.


According to our research, we have compiled a list of 5 Nigerian banks that will give you a business loan without collateral; however, we ask that you take some time to learn more about the loan options that best suit your financing needs. The great thing about these SME business loans is that they are designed to be easily accessible to entrepreneurs of all sizes and types of businesses.


Access Bank, unlike other Nigerian banks, has a greater focus on retail businesses. The bank’s structure is based on retail banking, and it, like Fidelity Bank, conducts transactions with market women and real SMEs.

It is possible that the bank will make business loans ranging from ₦100,000 to ₦1 million without requiring collateral. Yes! To qualify for their loan offers, all you need to do is open a corporate account with them and have consistent transactions for 6 months.

To demonstrate their eagerness to provide these loans, the bank has integrated loan calculators on its website, which can assist interested loan applicants in calculating how much loan they would receive following loan approval requests.


GTBank Plc also provides entrepreneurs with the option of obtaining loans without the use of collateral. Non-collateral loans from the bank are intended to stimulate growth in Micro, Small, and Medium Enterprises (MSME) in Nigeria. If you want a loan without collateral, look at the bank’s SME loan packages and select the one that is best for your type of business.

SME loans from GTBank are available in the following forms: revolving credit, installment loans, local purchase order (LPO) finance, and contract finance. The bank provides you with access to short and medium-term working capital, as well as asset purchases with lower collateral requirements.

They offer smart financing options that enable organizations to capitalize on their successes while also planning for future growth opportunities through quick cash flow solutions. This is intended to support your business’s financial needs by allowing you to withdraw money from no-funds accounts and using a SME-friendly account opening process that can be set up quickly for your company.


The Stanbic IBTC Bank provides an excellent opportunity for Nigerian entrepreneurs to obtain business loans without providing collateral. These loans are intended to assist SMEs in purchasing business assets, sales supplies, and other business facilities. However, the assets acquired through these loans can only become legally yours once you have made the final payment on the received loans.

If you want to apply for the Stanbic IBTC non-collateral loan, you should be prepared to provide the bank with the following information, just like most commercial banks in Nigeria:

Stanbic Bank Loan Application Requirements

  • The full names and capacities of those signing
  • Each member of the management team’s curriculum vitae
  • The reason you require business financing
  • Financial statements for your company, including an income statement, balance sheet, and cash flow statements
  • Personal asset and liability statements for all partners, members, or company directors
  • A 12-month cash flow forecast or financial projections for the business
  • The shareholders’ equity contribution and the fund’s payback source.

Heritage Bank has also made it easier for SMEs in Nigeria to access business funds. The bank has also developed initiatives to help SMEs gain market access. One of their major programs is the Youth Innovative Entrepreneurship Development Program (YIEDP), which is supported by the Central Bank of Nigeria as part of its commitment to SME and youth development.

This program aims to harness the talents and entrepreneurial spirits of Nigeria’s teeming youths by providing timely and affordable loans to assist them in putting their business ideas into action. In addition, the fund is intended to assist youth corps members, market women, and anyone else who wishes to access business finance through short-term bank borrowing.


The First Bank of Nigeria intends to provide collateral-free loans to Nigerian Small and Medium Enterprises. Through their loan schemes, the bank’s initiative aims to empower economic growth in the Nigerian SME sector.

The benefit of First Bank’s unsecured loans is that they are easily accessible to entrepreneurs regardless of their business type, location, or size. As an interested entrepreneur, all you have to do is take a psychometric test and then provide the bank with your winning business plan and financial projections. And you’ll soon receive your disbursement notification!


Today, there are numerous money lenders and lending platforms in Nigeria that can promise you a quick and easy agriculture investment or business loan without collateral; education, mortgage loan, salary advance, rent, or personal loans within 48 hours, which you will have to repay with interest later. However, if you are serious about starting or growing your own business, you will most likely have to start with your own savings or borrow money from wealthy friends and family members.

One thing to keep in mind when looking for a loan in Nigeria with a low interest rate is that commercial banks do require collateral and pay interest rates ranging from 20 to 25 percent per year. Microfinance institutions such as LAPO and other lending institutions will seek guarantors and charge a minimum interest rate of 5% per month or higher. While some online quick lenders in Nigeria do not require collateral or guarantors, they may offer 12.5 percent interest with access to your account details such as your bank verification number (BVN), which may put you in risk in the future.

According to the CBN guidelines, each bank is free to charge whatever rate it wants, as long as the amount compensates for the risk it is taking. So these are the expected interest rates on loan applications charged by the majority of Nigerian banks. They may also include any applicable levies, processing fees, and commissions. The high interest rates charged by Nigerian financial lenders are intended to help them mitigate the impact of the high loan default cases they encounter.

As a result, before approaching any of these banking institutions for a non-collateral loan or otherwise, it is in your best interests to first learn more about their services. Before making business loan proposals, open and maintain an account (corporate preferred) with them for 3 to 6 months. You should also have a solid business plan and a well-thought-out loan repayment plan.

Mfonobong Daniel

Daniel is an Editor on Nigerian Infopedia who craves for writing, researching and also watching soccer.

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