Moses Francisf you’re thinking how to get a business loan in Nigeria, this well Craft article is for you. This article provides details of banks that can give business loans without collateral. It’s important to understand that the success of any business isn’t dependent on bank loans rather the modus operandi , cash flows management, as well as meeting customers’ satisfactions..
Accessing funds for business growth can be challenging, especially for small and medium enterprises (SMEs) in Nigeria. Traditional bank loans often require collateral, which can be a significant barrier for businesses without assets. However, several Nigerian banks now offer collateral free business loans to support entrepreneurs and SMEs. In this article, we will explore the banks that offer business loans without collateral, their eligibility criteria, interest rates, and repayment terms.
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Benefits of Collateral-Free Business Loans
Collateral free business loans offer several benefits, including:
– Reduced risk: Without collateral, businesses don’t risk losing assets in case of loan default.
– Increased accessibility: More businesses can access funds without the need for collateral.
Faster application process: Collateral-free loans often have a faster application process since there’s no need for collateral evaluation.
 Where to Get Business loans without collateral.
Be it commercial, micro finance, industry or development banks they all offer the least interest funding for SMEs in the country. Which ranges from 5-25% interest or more for at least 1-5 years short to long term business loans. You can obtain loan ranging from 50,000 to 100 million Naira.
7 Banks that Can Give You Business Loans Without Collateral.Â
1. Access Bank – Creative Sector Loan*
– Loan amount: Up to ₦10 million
– Interest rate: 15% per annum
– Repayment period: 6-12 months
– Eligibility criteria: Businesses in the creative industry, such as fashion, music, and art
Access Bank’s Creative Sector Loan is designed to support businesses in the creative industry. With no collateral required, this loan is perfect for entrepreneurs who need funds to grow their creative ventures.
2. GTBank – Quick Credit Loan*
– Loan amount: Up to ₦5 million
– Interest rate: 1.5% per month
– Repayment period: 6-12 months
– Eligibility criteria: Small and medium enterprises (SMEs) with a minimum annual turnover of ₦10 million
GTBank’s Quick Credit Loan is a collateral-free loan designed for SMEs. With a fast application process and competitive interest rates, this loan is ideal for businesses that need quick access to funds.
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3. First Bank – FirstAdvance Loan*
– Loan amount: Up to ₦500,000
– Interest rate: 2% per month
– Repayment period: 30 days
– Eligibility criteria: First Bank account holders with a minimum monthly inflow of ₦50,000
First Bank’s FirstAdvance Loan is a short-term loan designed for individuals and businesses that need quick access to funds. With no collateral required, this loan is perfect for emergency funding needs.
4. UBA – SME Loan*
– Loan amount: Up to ₦10 million
– Interest rate: 15% per annum
– Repayment period: 12-36 months
– Eligibility criteria: SMEs with a minimum annual turnover of ₦10 million
UBA’s SME Loan is designed to support small and medium enterprises. With no collateral required, this loan is perfect for businesses that need funds to grow and expand.
5. Stanbic IBTC – Unsecured Loan*
– Loan amount: Up to ₦20 million
– Interest rate: 15% per annum
– Repayment period: 12-36 months
– Eligibility criteria: Businesses with a minimum annual turnover of ₦20 million
Stanbic IBTC’s Unsecured Loan is a collateral-free loan designed for businesses that need funds to grow and expand. With a competitive interest rate and flexible repayment terms, this loan is ideal for businesses that need access to funds without collateral.
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6. FCMB – Quick Loan*
– Loan amount: Up to ₦5 million
– Interest rate: 1.5% per month
– Repayment period: 6-12 months
– Eligibility criteria: SMEs with a minimum annual turnover of ₦10 million
FCMB’s Quick Loan is a collateral-free loan designed for SMEs. With a fast application process and competitive interest rates, this loan is perfect for businesses that need quick access to funds.
7. Union Bank – SME Loan*
– Loan amount: Up to ₦10 million
– Interest rate: 15% per annum
– Repayment period: 12-36 months
– Eligibility criteria: SMEs with a minimum annual turnover of ₦10 million
Union Bank’s SME Loan is designed to support small and medium enterprises. With no collateral required, this loan is perfect for businesses that need funds to grow and expand.
Nigerian banks have made it easier for business owners to access funds without collateral. These collateral free business loans offer a great opportunity for entrepreneurs and small business owners to grow their businesses. Be sure to check the eligibility criteria, interest rates, and repayment terms before applying.
Moses Francis
