Union Bank Leads List of Nigerian Banks Giving the Highest Loan Amount to Customers Without Collateral

Union Bank Leads List of Nigerian Banks Giving the Highest Loan Amount to Customers Without Collateral

  • More Nigerian banks are coming up with various services that allow customers to get quick loans
  • The loans are offered without the need for customers to provide collateral which is expected to be the standard practice
  • Union Bank and First Bank are some of the biggest Nigerian banks providing these loans in fulfilment of CBN's push to make available more finance to businesses and households

Nigerian banks are offering unsecured loans, which do not require collateral, as demand rises among small and medium enterprises (SMEs) and households.

The recent CBN's loan-to-deposit ratio (LDR) policy occasioned this rise, which requires banks to increase actual sector lending for improved economic growth.

The Governor of the CBN, Godwin Emefiele, had recently taken some tough decisions to address the challenges bedevilling the growth of the real sector, and generally, the Nigerian economy.

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Union Bank Lead List of Nigerian Banks Giving the Highest Loan Amount to Customers Without Collateral
More Nigerians are getting unsecured loans from banks Credit: Joseph Egabor
Source: Getty Images

CBN initiated the LDR on July 3, 2019, directing banks to henceforth maintain 60% from September 30, 2019.

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The latest CBN's consumer credit report shows that demand for unsecured credit cards lending 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, BusinessDay reports.

Banks that offer loans without collateral, as seen on their websites:

  • Access Bank, which offers up to N10 million without collateral to SMEs;
  • Fidelity Bank (N10m)
  • First Bank (N10m)
  • GTBank (N30m),
  • Polaris Bank (N10m)
  • Standard Chartered Bank (N20m)
  • Union Bank (N50m)
  • Zenith Bank (N10m)

First Bank

For instance, First Bank of Nigeria Limited has designed various salary products for working Nigerians with domicile salary accounts.

According to the bank, its loan offers without collateral are designed to help people unlock existing wealth.

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Femi Otedola, First Bank owner, makes N400m in one day

Legit.ng has reported that billionaire businessman Femi Otedola became N400 million richer in a single day, thanks to his majority shares in First Bank Holding Limited.

Otedola gained the amount in a single session on the Nigerian Exchange Limited, as investors rallied up top banks' shares after the trading day.

The serial investor and Chairman of Geredu Power Plant currently hold the majority stake in First Bank Holdings Plc. His shares in the top Nigerian bank stand at 2.7 billion in total shareholding, representing 21o billion in direct holdings and 2.5 billion issued shares of the company.

Source: Legit.ng

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