Today I will be reviewing the top 8 banks in Nigeria offering Business Loan Without Collateral. This category of businesses are a critical sector of any nation’s economy and Nigeria is not different.
Banks offering business loan without collateral in Nigeria are equally critical to the survival of the sector. 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.
List of Deposit Money Banks Offering Business Loan Without Collateral In Nigeria
The following are some of the Deposit Money Banks offering business loan without collateral in Nigeria.
- Access Bank
- Fidelity Bank
- First Bank
- GTBank
- Polaris Bank
- Standard Chartered Bank
- Union Bank
- Zenith Bank
1. Access Bank
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. Fashion, Information Technology, Movie Production, Movie Distribution, Music, Software Engineering Student Loan. None of these requires a collateral for loan
2. Fidelity Bank
Fidelity Bank is one of the banks offering business loan 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.
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.
3. First Bank
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.
4. GTBank
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).
5. Polaris Bank
Polaris Bank small business Loan without collateral 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.”
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.
7. Union Bank
Whatever your business needs are, Union Bank claim to have the right business loan without collateral to help meet your small business need. 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. Application details on the Union bank SME Loans can be obtained 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.
Conclusion
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.
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.
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.
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