5 Nigerian Banks that will give you Business Loan without Collateral

Nigerian Banks that will give you Business Loan without Collateral

5 Nigerian Banks that will give you Business Loan without Collateral

Thinking about how to get a business loan in Nigeria without collateral? In this article, you are going to find out the 5 Nigerian Banks that will give you Business Loan without Collateral.

Its true that most Nigerian Small and Medium sized Enterprises (SMEs) are having a hard time starting and growing up their businesses due to the inaccessibility of business funding.

The major reason that often kills great business ideas and perhaps the dreams of Nigerian entrepreneurs is their inability to meet the requirements of obtaining a bank loan.


Usually, an Entrepreneur could raise Business Funds through:


Banks – whether commercial, industry or development banks naturally offer the least interests funding for SMEs.

Banks generally charge between 5-9% interest rate (and more), for 1-5 years short-to-long term business loans.

In Nigeria, you can obtain bank loans as small as ₦50, 000 and as big as ₦100 Million Naira depending on the scope of your business.

If you are thinking of raising business capital through the banks, you should note that bank loans are usually secured; hence, you’ll need to provide collateral before you can be considered for a loan approval.

However, some Nigerian banks have awakened to the reality that most start-up entrepreneurs in Nigerian have only solid business ideas behind their heads, and no collateral to show for their loans.

Therefore, they are now willing to offer startups, business owner and entrepreneurs certain amount of money in the form of business loans without collateral.

This effort is as part of these banks’ initiatives to empower growth in the Nigeria SME subsector, by giving out small to long time loans to businesses that need them.

The great thing about these SME business loans is that they are designed to be easily accessible to entrepreneurs irrespective of the type or size of their businesses.

So take the time to find the one that suits your financing needs, below is a list of 5 Nigerian Banks that will give you Business Loan without Collateral.


5 Nigerian Banks that will give you Business Loan without Collateral


#1. First Bank Nigeria Plc

The First Bank of Nigeria has made plans to provide non-collateral loans for Small and Medium Enterprises in Nigeria.

This initiative of the bank is aimed to empower economic growth in the Nigeria SME sector through their loan schemes.

The great thing about First Bank’s unsecured loans is that it is easily accessible to entrepreneurs irrespective of the business type, location or size.

As an interested entrepreneur, the only thing you need to do is to go through a psychometric test, pass the test and then provide the bank with your business plan and your business financial projections.

And soon you will get your disbursement alert!


#2. Heritage Bank

Heritage Bank has also increased the accessibility to SMEs business funds in Nigeria.

The bank has also built initiatives around promoting access to the market for SMEs.

One of their major programs is the Youth Innovative Entrepreneurship Program (YIEDP) backed by the Central Bank of Nigeria – in recognition of its commitment to SME and Youth development.

The programme is aimed at harnessing the latent entrepreneurial spirit among the teeming youths by providing timely and affordable loans to help implement their business ideas.

The fund is to support youth corps members, market women and whoever desires to access business finances through short –term borrowing from the bank.



 Nigerian Banks that will give you Business Loan without Collateral

Nigerian Banks that will give you Business Loan without Collateral


#3. Diamond Bank Plc

Diamond Bank Plc also offers entrepreneurs an opportunity to obtain loans without collateral.

The bank’s non-collateral loans are designed to stimulate growth for Micro, Small and Medium Enterprises (MSME) in Nigeria.

Diamond Bank Plc has about 5 SME friendly accounts that you can open and start with.

If you want a loan without collaterals, you’ll have to look at the bank’s SME loan packages and choose the one that is best to you kind of business.

Diamond Bank’s SME loans can be accessed in the form of: Revolving Credit, Installment Loan, Local Purchase Order (LPO) Finance and Contract Finance.

Thus, Diamond Bank gives you access to short and medium term financing for working capital, as well as assets purchase needs with reduced collateral requirements.


#4. Wema Bank

Before you approach any of these banks for a non-collateral loan, it would be in your best interests to first open, run and maintain an account (corporate preferred) with such a bank for a period of 3 to 6 months.

You should also be armed with a sound Business Plan and a solid Repayment Plan for the loan.

Unlike other Nigerian banks, WEMA has more dealings with retail businesses.

The bank has built its structure around retail banking, conducting transactions with market women and real SMEs.

It is worthy to note that Wema Bank gives business loans from ₦100,000 to ₦1 million without any collateral.


All you need to do is to have steady transactions for 6 months in your corporate account to qualify for their loan offers.

To show their eagerness to give out these loans, the bank even has a loan calculator on its website – which helps interested loan applicants to calculate how much the bank would be expecting from your loan request.


#5. Stanbic IBTC Bank

The Stanbic IBTC Bank offers Nigerian entrepreneurs a great opportunity to obtain business loans without providing collateral.

The loans are designed to help SMEs buy their business assets.

However the assets only become your own when you make the last payment on the received loan.

To apply for Stanbic IBTC non-collateral loan, you should be prepared to provide the bank with the following information:


Stanbic IBTC Loan Application Requirements

  • The full names and capacities of those who will sign;
  • CV of each member of the management team;
  • The reason why you need the business finance;
  • Your business’ financial statements, including an income statement, balance sheet and cash flow statements;
  • Personal statements of assets and liabilities of all the partners, members or directors;
  • A 12-month cash flow forecast or financial projections;
  • The amount of your own contribution and the source of the funds.




Please note that the success of any business venture is not dependent on bank loans, what matters most is the business management and fund maximization.

Experience, knowledge and understanding are required if you want to run a successful business. Find out how you can benefit from our Free Business Mentoring Program for Startup Entrepreneurs.





Comments (24)

  • Ajakaiye Elizabeth Reply

    Thanks for making life easy Abbakin! I will be grateful if my loan is granted.

    October 28, 2017 at 7:44 pm
  • Ajala Wole Reply

    Thanks, for being eye opener for Nigeria people, now it we take us how many week or month before d first bank can give out d money?. Abbakin

    October 30, 2017 at 9:54 pm
    • Abbakin Reply

      Ajala this is dependent on your bank, loan term, interest rate (if any) and the payback period. Search and read: 10 Factors to Consider In Business Loans Application Process

      October 31, 2017 at 10:40 pm
  • nnamdi echendu Reply

    I need a loan to enable me to open a bakery in Lagos .I have acquired the half bag mixer to due the little capital I saved and I also acquired the 3deck gas oven both are new ones.I need up to 1m to hire a ware house and get materials for making the bread .pay to the company producing the nylons for the bread I ‘ve equally register a company in that effect pls how can u beg of help to see my dreams come through .

    October 30, 2017 at 10:14 pm
    • Abbakin Reply

      Thank for this Nnamdi. Bakery is a big time business idea and we are glad you have already invested in this great idea. Send us a mail for more information on how you can raise your startup capital and launch.

      October 31, 2017 at 10:25 pm
  • paul Reply

    I also need loan to start up my custard production business.. tanks

    November 12, 2017 at 6:35 am
  • Apeh Ikechukwu Reply

    Wow! Great piece I must say sir. Thanks for this. I’ll go and apply for first Bank loan and update my testimony here if it works

    November 19, 2017 at 7:13 pm
    • Abbakin Reply

      Great Ikechukwu we hope to hear from you!

      November 19, 2017 at 9:45 pm
  • Arigbabuwo Abdmajid Reply

    I wish to apply for first bank loan to finance my farming and processing business, please what are the requirements and steps to take. Best regards.

    November 20, 2017 at 8:02 am
    • Abbakin Reply

      Hi Abdmajid, kindly visit any First Bank branch near your location for more information on how you can apply for their business loans package. Remember to tell them how you hear about this offer and be optimistic. We’ll love to see your farming and processing business up and running. Cheer!

      November 20, 2017 at 11:47 am
  • Yakubu Omachi Reply

    Thank you so much Abbakin, pls do you know about bank of industry and how someone can obtain loan from them? I just finished my NYSC and I av a great business idea to start without delay.

    November 23, 2017 at 11:31 am
    • Abbakin Reply

      Hello Yakubu!
      We’re glad about your great business idea and your interest to bring this dream into reality. We have developed an article on How the Nigerian Bank of Industry can give you business loans through their Youth Entrepreneurship Support Programme: The YES-Programme Kindly follow this link to find out more on how you can benefit from this scheme. Click: https://abbakin.com/boi-youth-entrepreneurship-support-yes-programme/
      Just send us a mail if you need more information on how to start your business. Thank!

      November 24, 2017 at 2:08 pm
  • jenifer Reply

    Good Day, Are you in need of a loan? such as loan to pay off your dept, to pay your rent and solve financial problems, here is an opportunity for you, Flora offer home loans, business loans, and bad credit loans, commercial loans, start-up- working capital loans, construction loans, auto loans, hotel loans, xmas loan e.t.c of 3% interest rates per annual repaid, Flora loan takes a maximum of {2} working days,to get to all approved customers across the word contact us at (edited)

    December 8, 2017 at 5:22 am
    • Mathias kingsley Reply

      Pls Jennifer,am Mathias Kingsley from Abia State,i need a business loan of 300k which am sure that before end of next yr, i will complete my payback.

      December 18, 2017 at 11:37 pm
  • Johnson Reply

    I am a driver I have registered with taxify here in Abuja but I need a car loan so that I start earning and am very sure I will finish the payments in short time

    December 15, 2017 at 11:29 am
    • Abbakin Reply

      Hey Johnson. Thank you for a great business idea. Having the experience and registering with the necessary agencies in your industry is a good step. However, to get the money you need, you may visit any of the above banks near you with the business plan and repayment plan. If you don’t have, kindly ‘search’ for it on our website and organize the document before applying for the car loan. Good luck!

      December 17, 2017 at 5:37 am
  • adeoye ayo Reply

    Hello abakin, I want to start a fish pond fishery at the back of my uncompleted building. Please how do I get loan for this. And which bank will give me loan. Thanks

    December 15, 2017 at 2:24 pm
  • Iboi Douglas Osaro Reply

    Hi my name is Douglas, I need a loan to get a compactor truck for my waste management business which I have been doing for over a year now. How can I go about it?

    January 2, 2018 at 10:11 pm
  • Akintola Ademola Yakub Reply

    I have perfectly working 2002 Exterra but need #100,000 to renew my driver’s license, vehicle paper,5.0 phone, refill my car air conditioning system & buy 1 tyre so that I can start UBER/ TAXIFY that I have passed & underwent their trainings ! I would be greatful if I can have someone to loan me #100,000 to be paid back in 1 month .
    Wishing to hear from you Abbakin. Thanks & God bless !

    January 9, 2018 at 2:30 pm
  • Ubong Akpan Reply

    Good day my name is Ubong Akpan please I help to get loan to get a car for TAXIFY I am a private driver working in Vgc lekki

    January 31, 2018 at 9:40 am
    • Abbakin Reply

      Hi Akpan, kindly visit any of the banks listed below for more info on how you can get a car loan.

      February 4, 2018 at 11:17 pm
  • Oladokun Seun Reply

    Good Morning Mr. Abbakin, I searched the Internet seriously before I came across your article which I found more interesting than any other one.

    I am into school business and own a mobile educational consulting business which includes home tutorial and outsourcing of teachers for schools.

    Sir, I’ve tried raising funds to boost my school since last year but all effort were abortive. The loans I got last year were too small from from a micro finance bank with short term and huge interest. Please I would be very grateful if you can help me out without going through the micro finance bank again.

    Please help me!

    Thank You

    February 1, 2018 at 10:38 am
    • Abbakin Reply

      Hi Seun
      Thank you for the concerns. Loans from micro finance banks in Nigeria are usually costly when it comes to the huge interest rate charged and the loan tenors. However, since you have collected a loan already, we suggest that your first repay your loan before sourcing for top-ups. Check out our loan project for more information.

      February 4, 2018 at 11:12 pm

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