If you have been looking for some SME loans in Nigeria, then you have come to the right place! Just for you, we have compiled top five banks that offer small business loans. Check this post out if you want to know more about places that can help you fund your business.
Why you should consider getting your small business loan from a bank
If you intend to open your own small business, you are probably aware of all the ways you can fund it. Of course, if you already have money or friends/family that can give it to you at little or no interest, you have nothing to worry about. If not, you can always try going for a government grant, using a crowdfunding website or searching for angel investors.
But what if none of these options are available to you? Then you can always go for getting a loan from a bank. And if you think that no bank will give you a loan without collateral, then think again, as we have not one, but five banks that offer collateral-free loans to people who want to start a small business. Without further ado, here they are:
SME loans from First Bank Nigeria
One of the banks that offers Nigerians non-collateral loans for small businesses is First Bank. This initiative is meant to aid economic growth of the Nigerian SME (Small and Medium-sized Enterprises) sector with this very convenient loan scheme.
What is great about the unsecured loans from First Bank is that they are actually accessible to all entrepreneurs, no matter their business type, size or location. All that is required of you is to pass their psychometric test and provide them with your financial projections and a business plan. If everything goes well, you should be able to get your loan in no time!
Loans from Heritage Bank
Another great option is Heritage Bank. It has recently made things much easier for up-and-coming entrepreneurs to get small business loans. The bank is also involved in promoting access for SMEs to the market.
One of the initiatives in particular is meant to help young entrepreneurs in opening their businesses. It is called Youth Innovative Entrepreneurship Program, and it is supported by the Central Bank of Nigeria.
The programme's aim is to harness the latent spirit of entrepreneurship among the youth and offer them affordable business loans to bring their ideas into reality. It is also meant to support market women and youth corps members.
Get a small business loan from Diamond Bank
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If you are looking for a business loan without collateral, then Diamond Bank should be a great option. Their loans are meant to stimulate the growth of the Micro, Small and Medium Enterprises in Nigeria. There are about five different accounts you can open that are SME-friendly.
If you are looking specifically for collateral-free loans, take a look at Diamond Bank's loan packages for SME and find the one that fits you best. The loans come in the form of revolving credit, contract finance, Local Purchase Order finance and installment loan. With this bank, you will have the funds you need with reduced collateral requirements.
SME loan from Wema Bank
If you are by any chance planning to start a retail business, then Wema Bank should be a perfect choice. The best thing about Wema loans is that you can get from a hundred thousand up to a million Naira without collateral. All you need to get a loan is have steady transactions for half a year in your corporate account, and you will qualify. You can also use their online loan calculator to see how much loan you are eligible for and how much you can expect to pay back.
Loans for small businesses from Stanbic IBTC Bank
Last, but definitely not least, we have Stanbic with their non-collateral loans. However, in order to secure yourself a loan with Stanbic, you will need to provide the following:
- Full names and capacities of people who are going to sign the deal;
- A solid reason why you need this loan;
- CVs of all members of your management team;
- Personal statements of liabilities and assets of al the partners;
- Information on your own contribution (the amount and source);
- The financial statements of your business;
- A cash flow forecast for the next year.
As soon as you provide all of this, you should be able to get your loan.
Now you know where you can get a loan for your small business. We hope you will be able to actually get it. Best of luck in your business!