Thursday, 18 October 2018

How To Get A Loan In Nigeria Without Collateral 2018

how-to-get-loan-in-nigeria-without-collateral

Most Nigerians,fresh graduates and entrepreneurs are filled
with ideas,they poses a high level of business ideals,but most often they lack the financial capital to start up.  


If however this gifted business savvy individuals are given the opportunity of securing a loan,there is no doubt that they have the ability to convert it into a multi million naira business.
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Most often young entrepreneurs complain and groan at the refusal of most Nigerian commercial banks to issue a loan on the condition that they do not have a multi million naira collateral,in this post we will take a look at how you can secure a loan to kick off your business without a collateral in 2018. 

How To Get A Loan In Nigeria Without Collateral 2018

1. Diamond Bank Plc

Not all Nigerian commercial bank will require that you  have a collateral worth millions before you can be issued a loan,take for example Diamond Bank Plc offers entrepreneurs an opportunity to obtain loans without collateral. 
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According to the bank the non-collateral loans are designed to stimulate growth for Micro Small and Medium Enterprises (MSME).


To be able to qualify and apply for a Diamond Bank SME loans, you need to open a corporate bank account with Diamond Bank.

The bank has up to 5 SME friendly accounts. Diamond Bank’s loans can be assessed in form of Installment Loan,Revolving Credit,Local Purchase Order (LPO) Finance and Contract Finance.

2. Cooperative Societies

So many Nigerians has set up a business from the loan given to them from Cooperative Societies.

In order to get a loan,look for a solid and well established cooperative society,become an active member for at least 6months,then go ahead an apply for a loan.

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Usually there are always agreements and terms that you must reach before being issued a loan.

3. First Bank Nigeria Plc

First Bank is one of the top 3 commercial bank in Nigeria,the financial institution also provides non-collateral loans for Small and Medium Enterprises as part of the bank’s initiative to power growth in the SME sub-sector. 

According to the bank the loans are offered to SMEs in different sectors of the economy.

In other to qualify for a loan all you need to do is to go through a psychometric test, pass the test and provide the bank with your business plan and possible financial projections. It’s as easy as that.

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No matter the size of your business,you can secure a loan without collateral from First Bank.

4. Microfinance Banks

There are over 1000 microfinance banks in Nigeria,majority of these banks are tailored towards assisting the low income earners and also cater mostly for small and medium scale businesses.

Microfinance Banks also give loans to businesses with lower interest rates when compared to the commercial banks and most often the loans are given without collateral.

5. Stanbic IBTC Bank

Stanbic IBTC Bank also has a program that offer Nigerian entrepreneurs a great opportunity to obtain business loans without providing collateral,however there is a catch in Stanbic IBTC Bank's SME loan scheme which is that the loans offered will be used to buy assets.




The asset only become yours when you make the last payment on the loan offered. 

6. Government Agencies

The federal government also has schemes that help to provide small loans for small businesses in Nigeria. 

There is a government initiative that focus on assisting small farmers with loans without requesting for collaterals.
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The individual however will be told to pay back based on an agreement signed with the government.

See Also: 10 Most Powerful Kings In Nigeria

7. Revolving Loan Schemes

As simple as it sounds,these local loan schemes has the ability of raising a hugh amount of money for an individual. 

The revolving loan scheme has been around for many years in Nigeria. 
Members of the loan revolving scheme will contribute and donate funds on a weekly or monthly basis,after which at the end of the month the lump sum is given to one person of the group,the process is repeated until all members have benefited from the process.

This is a very quick way to raise funds without collateral.

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