Top Banks Offering SME Loans Without Collateral In Nigeria

Small and Medium Scale Businesses, SME are a critical sector of any nation’s economy and Nigeria is not different. Banks Offering SME Loans Without Collateral is equally critical to the survival of small businesses. 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.

Banks Offering SME Loans Without Collateral In Nigeria
Banks Offering SME Loans Without Collateral In Nigeria

Why SME Loans Without Collateral In Nigeria?

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.

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Because of this, some Nigerian Deposit Money Banks (DMBs), otherwise called as Commercial Banks are pushing for unsecured lending, a loan that does not require a collateral from the lender, as demand rises among small and medium enterprises (SMEs) in Nigeria.

Increase in Demand for SME Loans Without Collateral In Nigeria Increasing

As seen in the latest data from the Central Bank of Nigeria (CBN), demand for loans without collateral in Nigeria has been on the rise but lower than the demand in the pre-COVID-19 years.

The CBN’s latest consumer credit report shows that demand for unsecured credit cards another form of SMEs loan without collateral rose to 9.4 index points in the fourth quarter (Q4) of 2020 from 4.9 points in the first quarter of the same year.

List of Deposit Money Banks Offering SME Loans Without Collateral In Nigeria

The following are some of the Deposit Money Banks offering SME loans without collateral in Nigeria.

  1. Access Bank SME Loan
  2. Fidelity Bank SME Loan
  3. First Bank SME Loan
  4. GTBank SME Loan
  5. Polaris Bank SME Loan
  6. Standard Chartered Bank SME Loan
  7. Union Bank SME Loan
  8. Zenith Bank SME Loan

1. Access Bank SME Loan Without Collateral

Creative Sector Loan

The creative sector loan is a Central Bank of Nigeria initiative aimed at capacity building and employment creation for SMEs currently into any of the following. It doesn’t require a collateral.

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Information Technology
Movie Production
Movie Distribution
Software Engineering Student Loan


Low cost-single digit funding for your business
Flexible structure and repayment plans
Opportunity to achieve your long term business goals
Excellent financial advisory service

How it works: Eligibility Requirements

Prepare your business plan or statement on how much you want for your business.

Go to any Access bank branch with the above mentioned document or apply online through our Creative sector loan portal

Their Relationship officers will contact you for further discussion and process your loan request.

The maximum interest rate of 9% per annum (all charges inclusive) is applicable on all loans.

The repayment period is a maximum of:
a) 3 years for Software Engineering Student Loans
b) 10 years for Movie Production & Distribution, Fashion, Information Technology and Music

Interested? Click here to fill in your details.

2. Fidelity Bank SME Loan Without Collateral

Fidelity Bank is one of the banks offering SME loans without collateral and it has various products for Small and Medium Scale Businesses tailored to help further ease the poor-access-to-finance burden confronting MSMEs in Nigeria in line with their avowed desire to be at all times, the go-to bank for funding and allied support for MSMEs powering the growth and development of the Nigerian economy.

These bespoke financing/loan products are detailed below:

Cluster Based Quick Loan Products

More Quick Loan Products

Loan Products for Specialized MSME Segments

Development Finance Loan Products

Development Bank Of Nigeria (DBN) On-Lending Scheme For SMEs And Small Corporates

Fidelity Bank Plc, on the strength of the successes of its various interventions in the MSME development space, is a leading participating financial institution (PFI) in the DBN On-lending scheme for SMEs and small corporates.

This on-lending scheme is an alternative funding window that avails loans to eligible MSMEs playing in any sector of the Nigerian economy, at less-than commercial rates.

Eligible Customer Class:
SMEs and small corporates playing in any sector of the Nigerian economy and whose businesses are structured.

Loan Structure: Term loan, for working capital and asset/expansion finance support.

Single Obligor Limit: From N5m to N720m

Tenor: Up to 60 months

Get in touch with the bank and apply for your loan.

3. First Bank SME Loan Without Collateral

First Bank SME Products Financing is tailored with the fact that Small and Medium Scale Enterprises, SMEs are key drivers of the economy, which is why, according to them, they have designed these loans facilities to support the growth of customers’ businesses running SMEs with required funds. Many of the SMEs loan scheme does not require collateral.

First Bank has the following  featured SME Products Financing Options

Import Finance
Oil and Gas Contract Finance
Cement Distributorship Finance
Invoice Discounting Finance
Bonds & Guarantee
Telecommunications Distributorship Finance
Petroleum Dealership Finance
FMCG Key Distributorship Finance

Others include:

Operational Vehicles
Local Purchase Order Finance
Secured Overdraft
First Trader Solution (FTS)

Top 10 SMEs Loans Without Collateral In Nigeria

For more details about First Bank various SME loan option, CLICK HERE.

4. GTBank SME Loan

Gtbank operates a loan scheme, QuickCredit for Small Business and SMEs. The bank says with this scheme, you shouldn’t have to run around, to run your business.

The GTB SME Loan called Quick Credit for Small Business is a time loan product aimed at financing the working capital (i.e funds needed for day to day needs) of SMEs in the Education (creche, primary & secondary schools) and Healthcare (Hospitals, Retail Pharmacies and Diagnostic Centres).

What’s in it for You: Features of GTB Quick Credit for SMEs

Eligible to prequalified customers
1.5% per month (16% per annum)
Customers can access up to 50% of average annual turnover
Loan tenure is 6 months (12 months for schools)

You can open a corporate account and operate it for 12 months before applying for the credit facility


Funds are disbursed instantly


Eligible customers can apply via GAPs/GAPslite platform

Repayment is structured in two ways: Monthly interest payments and quarterly principal repayments (option is only available for schools) Equal monthly repayment of principal and interest

How to Apply

Simply select Loans and click on QuickCredit for Small Business on GAPs/GAPsLite platform and follow the prompts.

To Apply for GTB QuickCredit for SMEs, CLICK HERE

5. Polaris Bank SME Loan

Polaris Bnak SME Loan scheme is geared towards nurturing businesses for growth and by implication bridging identified gaps in the customer’s business. According to the bank, “One of those gaps is funding gap and as a Bank, we have the following loan solutions for our SME customers.”

Maximum loan amount is N10 million per obligor at every given time.

Traders who deal in FMCGs can now get finance up to N5 Million Naira

Polaris Health Sector Loan provides short to medium term finance to professionals in the Health Sector.

This is a N100 billion credit support intervention fund for the health sector from Central Bank of Nigeria

This product is specially designed for Private Tour Operators (Travel Agents) involved in the seasonal Hajj operations.

Other SME loans accessible through the SME Loan fast-track platform.

To get more information and application details on Polaris SME Loans, CLICK HERE

6. Standard Chartered Bank SME Loan

Standard Chartered Bank recently launched a product known as Smart Business Loan (SBL), a non collateral lending product, targeted at supporting the growth of SMEs.

Smart Business Loan (SBL) provides access to credit of up to N20million for your SMEs loans without collateral in Nigeria.


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.

To apply for Smart Business Loan, CLICK HERE.

7. Union Bank SME Loan

Whatever your business needs are, Union Bank claim to have the right SME loan to help meet your small business need.

“At Union Bank, we support your whole value chain of suppliers and buyers with short-term loans for SMEs that are key and sub-distributors,” the bank states.

Union Bank offers Cash Flow Lending, which is a working capital to help meet short-term business needs of customers. Its features include no collateral required, affordable interest rate, maximum tenor of 12 months, maximum loan amount of N10 million.

The bank also offers invoice discounting Finance Quick cash flow for businesses, featuring no collateral, affordable interest rate, and maximum amount of N50 million.

Cash Flow Lending

Working capital to help meet your short term business needs.

School Finance

Short-term bridge finance for private nursery, primary and secondary schools.For reoccurring operating expenses such as school uniforms, stationery etc. against the next term fee collection

Invoice discounting Finance

Quick cash flow for your business needs before your clients pays.

Distributor Finance Scheme

We support your whole value chain of suppliers and buyers with short term loan for SMEs that are key and sub-distributors.


Manage fluctuations in your cash flow and respond to emergencies. This product provides funding for SME customers to meet their cashflow needs and bridge shortfall of working capital

To get more information and application details on Polaris SME Loans, CLICK HERE

8. Zenith Bank SME Loan

Z-Woman is Zenith Bank’s (N10m) single-digit loan product for female-owned businesses for all sectors primarily geared toward growing the SME sub-sector and diversifying its customer base.

The loan is for female-owned businesses with shareholding of 50 percent or any majority shareholding provided it is owned by a woman.

According to the CBN’s latest data, availability of unsecured credit provided to households increased in Q4 ‘2020 and is expected to increase in Q1 ‘2021. Improving economic outlook and increased market share objective were contributory factors for the increase.

As lenders resolve to tighten the credit scoring criterion for total unsecured loan applications in Q4 ‘2020, the proportion of approved total loan applications for households increased. Lenders expect to also tighten the credit scoring criteria in Q1 2021 and anticipate that the proportion of approved loan applications will also increase.

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