How To Access Top Business Loan in Nigeria with Easy Repayments

In the world we live today, traditional banks are no longer the only sources of business financing. As a matter fact, entrepreneurs and business owners now have greater options when it comes to accessing business loan facilities.

In the past, entrepreneurs and small business owners find it difficult to obtain credit facilities or get a loan to finance their business; but, fast-forward to the present time, things has changed.

With various online lending platforms and loan apps, you now have access to different business finance options; like a loan without Collateral and SME loan. Additionally, some of these finance companies will offer you working capital loan.

Each year, thousands of people start different companies. Some will fail before their first year anniversary; while many others will follow suit thereafter. Only a handful will survive the first five years.

With the failed companies, they have something in common. That is lack of business capital. Be that as it may, capital is necessary for a business to maintain its operations.

There are two basic ways to finance your business – debt or equity. This article will focus on the dept aspect; that is to say, guide you on securing top commercial loan to move your business forward.

Here are four ways to finance a business in Nigeria:

  • Local banks and other financial institutions.
  • Government loan schemes.
  • International financial service providers.
  • Approved quick loan service providers.

Regardless of the loan amount, here are the basic requirements needed to secure a business loan in Nigeria.

Basic Requirement to Secure a Business Loan in Nigeria

Financing your business with a loan may not be your best option; but if push comes to shove, you may be better off taking out the business finance. In fact, this may provide you with the much needed capital at that point.

To get a business loan in the Nigeria, you will need to submit the following documentation to the lender.

  • Business plan: To include executive summary, company description, market analysis, financial plan and projections.
  • Cash flow forecast: Depending on the lender, 12 – 24 months cash flow forecast may be required.
  • Bank statement: Last six months business banking statement required.
  • Business financial statements: To include income statement, balance sheet and cash flow statements.
  • Personal statements of assets and liabilities: For directors and other partners.
  • Three to five years tax return.

Regardless of the documentation submitted, your business profitability will also be thoroughly looked into before the loan is approved.

This is important because the finance provider will want to know how your business will be able to repay the debt.

Business Financing and Loan Providers in Nigeria

Are you looking for a small business loan? Or to borrow money without collateral?

Registered financial institutions and other money lending service providers in the country will lend money to business owners. Some will give you the loan without collateral, while other will not.

Although the type of collateral required may depend on two things; that is to say, the amount of funding required and business risk factors. In either case, here is a guide to secure top business loan in Nigeria.

1. Local banks and other financial institutions

Banks loan facilities are always available to entrepreneurs and other business owners. You only need to approach the bank for assistance.

Most registered banks and financial institutions will lend you money if you can satisfy their lending requirements. Also, you must be able to show the lender that you have the ability to pay back the loan.

Provided that you have all it takes, some financial loan could be what you need; in order to take your business to the next level.

Here’s an overview of seven local banks and financial institutions for business loan in Nigeria:

1.1 Zenith Bank MSME Loan

Zenith Bank Nigeria is known to providing entrepreneurs, SME and business owners with various financial injection when needed.

Uniquely, the bank offer a wide range of loan types to cater to every business contingency; from MSME loans and overdraft facilities to project term loan.

  • Key facts:
    The Zenith bank MSME loan is offered to business owners within the beauty, confectionery and fitness sector.
  • Pros:
    – Competitive rate.
    – Easy application.
  • Cons:
    – Must have operate business account with Zenith bank for a minimum of 6 months.
    – Require personal guarantee of customer.
    – Business must have been connected to Zenith bank electronic channels for at least one year.
  • Product details:
    – Minimum loan amount is ₦500,000.00.
    – Maximum loan amount is ₦2,000,000.00.
    – Management fee of 0.5% – 1% flat applies. This is subject to a minimum of ₦10.000.00.
  • Interest rate: 9.0% P.A.
  • Loan tenor: 12 months.
  • How to apply: Visit any bank branch or fill out application online.

1.2 First Bank Business Loan

First bank has variety of business finance products for SME, entrepreneurs and other existing business owners. Comparatively, their range of products is large.

For the purpose of this article, I will focus on the SME products. For one thing, the small business loan is targeted at FirstBank customers. That is to say, you must have operated your corporate account with the bank for a period of time.

  • Key facts:
    FirstBank SME Products Financing is available for:
    – Import finance.
    – Oil and Gas contract finance.
    – Cement distribution finance
    – Invoice discounting
    – Petroleum dealership.
  • Pros:
    – Competitive interest rate pricing.
    – On the positive side, you can get facility is in excess of ₦50million for Project Finance; although, you must secured it with tangible collateral.
  • Cons:
    – Collateral involved, but flexible.
    – Equity contribution required.
    – Audited financial statement to be included.
  • Product details:
    – Secured term loan.
    – Minimum and maximum business funding depend on loan purpose and value of collateral.
  • Interest rate: 9.0% – 15.0% (depending on individual circumstances).
  • Loan tenor: Flexible.
  • How to apply: Visit website, or bank branch, or call First Bank contact number – +234 1 448 5500.

1.3 Stanbic IBTC Business Loan

Borrow from Stanbic IBTC Bank with ease. In fact, I see them as a bank of convenience. Unlike other lenders in the country, you can repay your loan bad over a period of 60 months; that is to say, you have an extended period to repay your borrowings.

Although your repayment period is up to 5 years, you must repay your agreed instalments until the tenor of the loan.

  • Key facts:
    Stanbic IBTC Business Loan is open to all types of businesses; provided that you meet their business financing conditions. Also, you do not have to be their customer; as long as you can provide your business’ bank statements for the past six months (prior to loan application date).
  • Pros:
    – Your repayment is structured to suit your business’ cash flow.
    – Two types of financing – fixed or revolving types of borrowing available to choose from.
  • Cons:
    – Partners, members or directors are required to provide personal statements of assets and liabilities.
    – Your initial contribution amount in required. Also, source of your initial fund must be known.
    – You must provide your business’ financial statements when you apply for the finance.
  • Product details: The Bank has variety of products to choose from. For the purpose of this article, details below are on the Stanbic IBTC EZCash.
    – Minimum loan amount is ₦20,000.00.
    – Maximum loan amount is ₦4,000,000.00.
  • Other fees on amount borrowed:
    – 1% Management fee.
    – 0.05% Value Added Tax (VAT).
    – 0.35% Insurance fee.
    Interest rate: 2.5% per month.
  • Loan tenor: 12 months.
    Additional information: Their fixed term load is for short-term financing; therefore, no collateral is needed.
  • How to apply: Visit your nearest branch, or call – + 234 700 2255 7826242 or +234 01 270 9676.

1.4 Union Bank SME Loan

Know with the slogan – Big, Strong and Reliable; of course, Union bank Nigeria is among the top financial institutions you can get a business loan without collateral from. In fact, the bank lend to both registered & unregistered businesses.

Like other borrowing institutions within the country; Union bank has various SME loans you can apply for. In addition, you may apply for either long or short term financing from the bank.

  • Key facts:
    Union bank SME loan is open to entrepreneurs and other business owners. Explicitly, you must show that you have a business; at the same time, you should be able to prove the physical location of you business.

    Borrowing from Union bank has lots of advantages; such as affordable interest rate on cash flow lending to flexible loan amount (this is dependent on business cash flow).

  • Pros:
    – No collateral required for most of their SME funding.
    – Affordable interest rates.
  • Cons:
    – Executed Board resolution to borrow need.
    – You must provide your business financial statements when you apply for the finance (apply to limited liability companies only).
    – Proof of business address, ownership of business location and evidence of tenancy must accompany your application.
  • Product details:
    – Minimum loan amount is ₦200,000.00.
    – Maximum loan amount is ₦50,000,000.00.
    – Interest rate range varies between 30% – 40% (load purpose will be assess accordingly).
  • Loan tenor: 6 months – 60 months.
    Additional information: At the present time, their loan tenor varies from product to product. You will need to visit the bank branch for an up-to-date tenor for more information.
  • How to apply: Visit your nearest branch, or call toll-free on 0800 700 7000.

2. Nigeria Government loan schemes

Nigeria Government Loan Scheme, Government Business Funding, Loan Without Collateral

This is the preferred option by many. With the government loan schemes, application process is less stressful and loan repayment is more affordable. Additionally, the interest rate on your loan is lowers than that of financial institutions.

Another key point, you get government business funding without collateral; all you need to do is to follow the appropriate channels.

The government loan scheme can be a good alternative for business owners. It is set up to provide subsidized loans to Micro, Small and Medium Enterprises (MSME). As a matter of fact, agricultural business and exportation are given more priority.

Whether you’re just starting a new lucrative business or need some form of business finance, you’re probably going to need SME capital loan. As a business, here are top government loan schemes you can choose from and the application process.

  • FGN Special Intervention Fund for MSME.
  • Bank of Industry (BOI).
  • Agribusiness small and medium enterprises investment Scheme (AGSMEIS).
  • Micro Units Development and Refinance Agency (MUDRA) loan.
  • Agricultural Credit Guarantee Scheme Fund (ACGSF).
  • TraderMoni.
  • Agricultural Credit Support Scheme (ACSS).
  • YouWIN Loan Scheme.
  • Micro, Small and Medium Enterprises Development Fund (MSMEDF).
  • Commercial Agriculture Credit Scheme (CACS).
  • Lagos State Entrepreneurs Trust Fund (LSETF).

As can be seen, the Nigeria government is doing her possible best to finance SMEs and other business owners.

3. International financial service providers

Business owners, SMEs and entrepreneurs can seek for corporate lending without collateral outside the country. This is also an option open to finance you business.

With this in mind, here are top international business finance providers that offer business financing to Nigeria.

  • International Finance Corporation (IFC).
  • GroFin Fund.
  • Africa’s Young Entrepreneurs (A.Y.E).

In reality, international business loans may be all you need to apply for; After all, most of the international ledgers will finance your business at a lower interest rate.

For example, individuals that are into FINTECH, or exportation business has a better chance of being approved.

4. Approved Quick Business Loan Providers without Collateral

You business could benefit from approved loan providers in the country. Inasmuch as you have needs for the fund, you can approached them for capital loan.

With these providers, you now have access to many funding options, from SME loans and fast business loan to short term business finance facilities.


You have been provided with detailed information on how to secure additional funding for your business. For one thing, weigh your options and decide on the appropriate loan provider to go with.

Each of these lenders has their requirements that you need to meet; in order to get any form of business funding. If you can meet those requirements, there should be nothing stopping you from approaching them.

Another key point, make sure that the lender’s interest rate is affordable to you; also, loan conditions should be favourable also.

As can be seen, you have various options to choose from. It’s up to you to take the appropriate steps to secure your business funding; not only from the best business loan provider, but also from a reputable financial institution in the country.

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