Accessing SME loans without collateral in Nigeria has become very difficult but thanks to the evolution of the FINTEC era that has democratized quick and instant loans to small businesses and individuals.
Small and Medium Scale Businesses, [SME] are a critical sector and the backbone of any nation’s economy, especially developing countries. SMEs are also important contributors to employment, economic and export growth. In Nigeria, SMEs contribute 48% of national GDP, account for 96% of businesses and 84% of employment. Most SMEs cannot survive without loans and cannot afford the collaterals that traditional banking system requires. Hence it’s important that SME loans without collateral in Nigeria are available to these very important sect of businesses.
Despite the fluctuation and devaluation of the currency which has culminated in capital inadequacy for most SMEs in Nigeria, there are vast SME loan opportunities in the business environment that small businesses can explore even when they do not have collateral to stand in. Most of these loans are instant and require little or no documentation and sometimes need no physical office visit before getting loan approval.
List Of top SME Loans Without Collateral In Nigeria
The top SME Loans without collateral available in Nigeria for quick loan processing and instant cash disbursement include Lidya SME Loan, Stanbic SME Loan, Lendigo SME Loan, Zedvance SME Loan, GroFin SME Loan, Sterling Specta loan and a few other lending platforms specially designed for small businesses. They all have fast loan processes and do not require collateral or any major documentation.
Below is a list of the top 10 SMEs quick loan available in Nigeria today
1. Lidya SME Loan
Lidya is our 1st pick for SME loans without collateral in Nigeria. It is a USA holding financial institution that provides instant SMEs loans without collateral in Nigeria and to some other frontier and emerging markets. The company is spread across 3 continents and 5 countries which are USA, Portugal, Nigeria, Poland and Czech Republic. Lidya says it can grant instant credit between N50,000 to N30m to small businesses in 24 hours.
Lidya SMEs loan give you the opportunity to expand your business and generate more income. Lidya provides financing based on the cashflow in your bank account and without collateral. You can access this quick online instant loan by simply signing up for growing your business to the next level.
2. Stanbic SME Loan
Stanbic SME Loan is our 2nd pick for SME loans without collateral in Nigeria. It is a tailored made lending facility that is available to small businesses in Nigeria for expanding their productive capacity and meeting working capital in order to achieve business goals. SME loan without collateral takes 24-Hour process for eligible customers in Stanbic bank.
3. Lendigo SMEs Loan
Lendigo is our 3rd pick for SME loans without collateral in Nigeria. Lendigo is a financial technology firm with a vision to become Nigeria’s leading financial institution dedicated to small businesses (SMES Loans) through technology and innovative practices. The company prides itself as being Nigeria’s No 1 SME Loan Provider, offering business loans from N300,000 – N10,000,000 without collateral.
Lendigo platform provide easy, fast, flexible and reliable access to working capital to Nigerian SMEs according to their individual requirements and suited to their business and finance needs.You can easily apply for a business loan on the Lendigo App at a very low interest rate, and get it credited straight into your account, even if your business is not yet registered.
Zedvance is our 4th pick for SME loans without collateral in Nigeria. It is managed by Zedvance Finance Limited and is a consumer finance company committed to providing consumer credit in the most efficient and convenient manner while ensuring best practices. It offers loan packages that cater to all your financial needs regardless of what they may be. The company claims an eligible individual or small business can get up to N5million quick loan in 5 hours without collateral.
According to Zedvance, :”if you have a full-time job and wish to start a side business, with Zedvance you can borrow up to N5 million and repay it over a period of 18 months. No hidden charges.” With Zedvance Instant Loan, you have the choice to a flexible mode of payment almost at the point of need. Depending on who you bank with, you could have the funds in your account within the hour.
5. GroFin SME Loan
GroFin is a specialist, impact-driven lending platform that gives SMEs loans without collateral in Nigeria. The organization helps entrepreneurs succeed by providing them with small business loans and business support to grow their businesses.
GroFin support entrepreneurs and their small buisnesses with instant loans to help them thrive. It focuses on small businesses operating in education, healthcare, agri-processing, manufacturing and key services (water, energy and sanitation). GroFin believes that SMEs need more than finance to succeed. And that growing small businesses to create sustainable jobs is the most powerful driver of social and economic development that truly improves people’s lives.
The application for Grofin loan is done via the official website. It starts with the Pre-qualification Assessment to make sure you’re qualified for the loan.
6. CBN SME Loan For Graduates, Undergraduates
The Central Bank of Nigeria (CBN) as part of its policy measures to address rising youth unemployment and underemployment unveiled business loans for graduates and undergraduates of Nigerian polytechnics and universities at a single digit interest rate of 5%.
The business loans which comprises N5million for individual projects and N20million for partnership and company’s projects are designated the Tertiary Institutions Entrepreneurship Scheme (TIES), and executed in partnership with Nigerian polytechnics and universities to harness the potential of graduate entrepreneurs (gradpreneurs) in Nigeria.
7. CBN Anchor Borrowers Programme
The Central Bank of Nigeria (CBN) in line with its developmental function established the Anchor Borrowers Programme (ABP). The Programme which was launched by President Muhammadu Buhari (GCFR) on November 17, 2015 is intended to create a linkage between anchor companies involved in the processing and small holder farmers (SHFs) of the required key agricultural commodities.
The programme thrust of the ABP is provision of farm inputs in kind and cash (for farm labour) to small holder farmers to boost production of these commodities, stabilize inputs supply to agro processors and address the country’s negative balance of payments on food. At harvest, the SHF supplies his/her produce to the Agro-processor (Anchor) who pays the cash equivalent to the farmer’s account.
Interest rate under the ABP shall be guided by the rate on the N220 billion MSMEDF, which is currently at 9% p.a (all inclusive, pre and post disbursement). The PFIs shall access at 2% from the CBN and lend at a maximum of 9% p.a. 1.10. Tenor The tenor of loans under the ABP shall be the gestation period of the identified commodities.
8. Sterling Specta
Specta is an online lending platform that claims to give loans of up to 5 Million in one transaction all within 5 minutes! According to the organization, you don’t need any collateral, no paperwork, no guarantors and no visit to any office. Digital lending from Specta are available to take care of urgent personal and business needs.
Specta claims that once application is complete, scoring is instant, and disbursement can be done in less than 5 Minutes. Specta is opened to everyone irrespective of occupation and bank.
Smart Business Loan (SBL) is a product of Standard Chartered Bank and it provides you access to credit of up to N20million for your SMEs loans without collateral in Nigeria.
Features include the following:
- No Collateral Required
- Available to both Existing and New Clients (no waiting period)
- The repayment plan can be structured to suit your business and flexible for up to 2 years
- Easy access to the loan through our digital application forms and automated repayment process.
- If you need additional financing during your loan tenor, we can offer you a top up after 12 months if regular repayments are made.
10. Wema Bank ALAT
Wema Bank’s digital platform, Quick Loan is set up to assist entrepreneurs, startups and SMEs customers fund their businesses.
The digital lending product hosted on ALAT for Business, its corporate internet banking platform, will help small and medium-scale enterprises (SMEs) and corporate customers access quick loans between the range of N100,000 and N10 million.
Quick Loan, the bank claims, will be accessed virtually from any location without the need to locate a physical branch. And it will only be available for ALAT for Business customers. This implies that to access this SME Loan, you must be or ready to become a Wema Bank Customer.
SMEs need loans to sustain their working capital, to invest and expand their productive capacity for better output and increased bottom line. Without the access to funds and funding which most times are through loans, small businesses run the risk of becoming stunted, unproductive and unsustainable.
In Nigeria, SMEs contribute 48% of national GDP, account for 96% of businesses and 84% of employment. According to the Nigeria Bureau of Statistics, (NBS), small and medium scale enterprises (SMEs) in Nigeria have contributed about 48% of the national GDP in the last five years.
According to the World Bank, SMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. Because of this major role, it’s important that each country provides special SMEs loans without collateral for the survival of their econmies.