How to get a loan without collateral or guarantor in Nigeria: apps overview

How to get a loan without collateral or guarantor in Nigeria: apps overview

Millions of Nigerians have been underbanked for years due to low income and lack of collateral or guarantor. Entrepreneurs needed quick cash for personal or business runs, only to be denied due to collateral requirement. Well, those days have long gone, as new financial companies have emerged to provide a loan without collateral through the use of technology.

These financial technology (Fintech) companies have taken advantage of the gap between low income loan seekers and Nigeria's commercial bank. Deposit money banks no longer have autonomy over loan provision, as licenses have been issued to Fintechs to increase credit availability for personal and business needs.

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These Fintechs changed the way loan application is done and received, as well as requirements for loan approval with their loan app which is licensed by the Central Bank of Nigeria (CBN).

The loan apps have cut the cumbersome process of paperwork, while arm and a leg requirements such as guarantors gone with the wind, making it easier for individuals and small businesses without collateral to obtain instant loan through their smartphones.

But while the changes have occurred for the benefit of all Nigerians, not many know where to go to get such credit opportunity. So aggregated some of the Fintech companies offering loans without requesting for collateral.

Loan apps offering credit without collateral


Five Ways To Get Loan Without Collateral Or Guarantor In Nigeria
Five Ways To Get Loan Without Collateral In Nigeria. Photo Credit: Screenshot of app website
Source: Depositphotos

In 2014, Carbon, previously known as Paylater, was founded by Chijioke Dozie, to offer short-term loan to individuals that have been underserved by Nigerian banks.

  • Loan applicants interested in Carbon can obtain as much as N500,000 within five minutes once vital information have been filled and verified. The loan app provide loan to student, salary earner or self-employed.
  • Carbon loan comes with interest rate just like Bank, but without collateral. Carbon loan attracts as low as 5% monthly interest rate on the first loan, and loan tenor depends on borrower. Since the company released its app in 2016, it has recorded over one million downloads

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Aella Credit

When in need of emergency fund, Aella can be your plug. The company co-founded by Wale Akanbi, said obtaining loan shouldn't be so complicated, that's why the startup prides itself as an instant loan provider.

  • Aella has over one million users registered to its loan platform, and offers credit in five minutes after application. Interested loan applicants can access between N1,500 to N1,000,000 loan.
  • Aella's loan timeframe also depends on an individual, but its usually within a month or 3 months repayment period. Interest rate is fixed based on the loan applicants, but it falls within 4% to 30%.


Five Ways To Get Loan Without Collateral Or Guarantor In Nigeria
Five Ways To Get Loan Without Collateral In Nigeria. Photo Credit: Screenshot of app website
Source: Depositphotos

This is another instant low platform for unexpected financial needs. Branch was founded by Daniel Jung and Matthew Flannery. Branch has become an household brand in the credit market in Nigeria within five years of its existence.

  • With Branch, a loan seeker can secure credit of N1,000 to N200,000 at their comfort zone without paperwork. The repayment periods from 61 days to 1 year, but Branch doesn't charge late fee.

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  • Monthly interest rates range from 1.7% to 22% and there is no other hidden additional fees for processing your loan. Branch's popularity has grown to over 10 million downloads of ifs app.


When you can't wait for that end of the month alert sound due to urgent cash needs, Alat can be a lifesaver. Wema Bank debuted their loan app to remain competitive against the aforementioned loan apps.

  • Alat is a multipurpose platform, however, one of its strongest selling point is its loan provision. Alat came into the game late in 2017, but it has over 500,000 app downloads.
  • Alat provides as much as N150,000 instant loan for short-term use, but its lending interest rate is determined by its lending partners, with no public record of its interest rate range.
  • Note if you don't pay your loan on due date, you will be charged, and could be blacklisted, which will affect you when seeking for loan from other loan providers.


Five Ways To Get Loan Without Collateral In Nigeria. Photo Credit: GTBank website
Five Ways To Get Loan Without Collateral In Nigeria. Photo Credit: GTBank website
Source: Depositphotos

This list won't be complete without GTBank quick loan. Just like Wema Bank, GTBank also created its instant loan platform to keep its customers from running towards rivals.

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  • GTBank quick credit is known for its low interest rate. The lender basically crashed the lending rate, offering 1.33% monthly, a rate no loan app has been able to replicate.
  • GTBank provides its emergency fund via its *737*51*51# USSD code, allowing loan applicants to access up to N500,000 to N5 million. Repayment is spread over 6 - 12 months.
  • Unlike its usual loan offering, GTBank quick credit is Quick Credit is a loan accessible to salary and non- salary account holders, and also doesn't request for collateral or guarantor.

Meanwhile, earlier reported that food prices in Lagos market continued to rise daily, following recent policy by the government and series of happenings within the country.

In wake of the second wave of COVID-19, traders are worried over the increasing cost price of goods in the market while buyers on the other hand are complaining of insufficient resources which in turn affects the pace of business in the state.

Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining, he worked at Nairametrics where he wrote financial and investments analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.


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