Getting legit small business loans in Nigeria is a huge challenge for most small enterprises, owing to a lack of credit facilities for small business owners and entrepreneurs in the country. However, outside money is sometimes required to start or grow a firm, as well as to cover day-to-day expenses such as payroll and inventory.
Nonetheless, finding, qualifying for, and receiving approval for small-business loans might be challenging, the more information you have, the easier it will be. This article outlines the most important methods and stages for obtaining a business loan.
What is a Loan?
A loan is a type of debt that an individual or other entity takes on. The borrower receives a sum of money from the lender, which is commonly a corporate, financial organization, or government. When it comes to exchanging, the borrower agrees to a set of terms, which may include, interest, finance charge, a repayment schedule, and other stipulations.
9 Legit Small Business Loans in Nigeria
Here is a list of sources for Small Scale businesses:
1. KIAKIA.co
The name “KIAKIA” was derived from Nigerian slang which implies “Fast Fast”.
What they do is when you are able to talk reasonably, they assist Nigerians in obtaining personal and small company loans, as well as enabling savers to lend out funds at negotiated interest rates.
Kiakia Loans is a company that offers financial services to entrepreneurs and small enterprises.
Their loan size is up to N500,000
2. GroFin
GroFin is one of the 9 Legit Small business loans in Nigeria and has helped emerging firms in Africa and the Middle East with investment finance and business support.
They provide SME finance/business loans to businesses in South Africa, Zambia, Nigeria, Ghana, Ivory Coast, e.t.c.
Loan size is from a hundred thousand naira (#100,000) to a million and five hundred thousand naira (#1.5m).
3. Carbon formerly Paylater loans
Carbon loan is an easy-to-use, totally online lending platform that helps individuals and small businesses in Nigeria meet unexpected bills or urgent cash demands.
They allow you to borrow up to 500,000 Naira without putting up any collateral. Funds are normally released within 1–3 business days after one’s application has been approved. If you pay your bills on time, you may be able to get a greater credit limit on your next loan.
4. Smedan
What they do is to stimulate, monitor, and coordinate the development of the MSMEs sub-sector; proposing and articulating policy proposals for small and medium enterprise growth and development are just a few of their responsibilities.
They provide funding to small and medium-sized businesses.
5. Fastcredit
Fastcredit is one of the 9 Legit Small business loans in Nigeria. What they do is provide value-based lending to those at the bottom of the pyramid who may not have access to credit through typical banking channels in accordance with the Central Bank of Nigeria’s financial inclusion policy.
They have a presence in more than five Nigerian states. They provide funding for personal loans, small business loans, and corporate partnership (group) loans.
6. Aella-Credit
Aella Credit is developing systems which make it easier for Africans to access credit. The organization focuses on employee financing and empowerment, and now partners with three major credit bureaus in Nigeria so as to give customers rapid and affordable loans which require no paperwork. It’s considered one of the best loan platforms in Nigeria for small businesses.
7. QuickCheck
Quick check is one of the 9 Legit Small business loans in Nigeria. QuickCheck is a cutting-edge loan platform which takes care of both consumers and small businesses. QuickCheck makes financial credit available to individuals and small enterprises through mobile technologies.
According to the portal, customers are able to get quick and easy loans of up to 30,000 Naira for 15 or 30 days without putting up any collateral.
8. Access Bank
The institution has specifically designed loan packages for corporate entities or firms wishing to scale out in a big way. However, as an extension of CBN loans, they also have loans for individuals, namely those in the creative industry. The bank is still one of Nigeria’s most popular, and it provides exceptional loan services to match.
9. Lendigo
Lendigo is one of the 9 Legit small business loans in Nigeria and also a credit platform in Nigeria that makes provision for loans to businesses without requiring collateral. Their loans are applicable to a wide range of firms, because there are no specific establishments or industries; Lendigo claims to have made provision of N6 billion in loans to over 2,000 businesses so far.
Lendigo provides loans to businesses all over Nigeria. Their loans are primarily for small businesses, and there is no need for collateral. The loan amount ranges from N300,000 to millions of Naira and this is dependent on the kind of business applying for the loan. Interestingly, the Lendigo app is all you need to get this loan.
How You Get Loans For Small Businesses in Nigeria
Here are ways you can get loans for your Small Business in Nigeria:
1. Banks and Financial Institutions
People who desire to begin their own establishment but lack the funds tend to turn to banks for financial assistance.
Banks and financial institutions help firms at all phases of development. Banks will lend to a startup if the business concept, estimated returns from the firm, ability to repay the loan (through business or otherwise), management experience and competence, and other security is given satisfy them.
Despite the fact that most bank loans have a high-interest rate, it is critical that you do your homework by analyzing the numerous business loan choices available for small businesses from Nigeria’s major banks. Before deciding which option to choose, make sure you completely understand the terms of the loan agreement and are confident that you will be able to repay the loan within the specified time frame.
2. Government Loan Schemes
Small and expanding firms should always choose government-sponsored loans because they are more inexpensive.
Government business loans can assist MSMEs with day-to-day operational costs, growth and expansion costs, and infrastructure expansion. Several Nigerian banks and financial institutions are collaborating with the government to give business loans through government-sponsored funding initiatives such as YouWin, BOI, and NPower, among others.
These government-sponsored funds are usually in the form of a grant or a loan with a low or no interest rate. This is the reason getting one could be a lot more difficult due to the fact that you have to now be up against a slew of other business owners.
3. Loan Service Providers
We all must have found ourselves in a scenario when we needed money right away to take care of a pressing matter. What should be a better option if a bank loan is taking quite a long time to come through? At this point is where due internet or online loan services come to one’s rescue.
Small business enterprises and persons in Nigeria now have access to quick and cheap short-term loans thanks to FINTECH. Private companies such as Paylater (a subsidiary of OneFi), KiaKia, and Quick Loans are leading the way in offering short-term financing. You may now apply for quick loans online and receive payment in as little as 24 hours.
This type of loan is only available for a short period (usually 3 to 6 months) and has a very restricted amount of capital available, but it may be your best bet if you need immediate cash to complete a customer order or supply your inventory.
8 Types of Loans
- Personal Loan.
- Business Loan.
- Home Loan.
- Gold Loan.
- Rental Deposit Loan.
- Loan Against Property.
- Two & Three Wheeler Loan.
- Personal Loan for Self-employed Individuals.
How do I start a money Loan business in Nigeria?
You can establish a money lending business in Nigeria by collecting information (phone numbers and other contact information) from small business owners who may want funds. Then contact them and offer them various loans and packages that you have available. Then, of course, you’ll require funds to lend out.
Can I get a loan for a startup business?
Yes, you can take out a loan for your new firm. You might be able to discover angel investors or equity investors who are interested in supporting your company. You are able to also lend money online with apps such as Quick Check, Aella Credit, Zedvanc, Ren money, Grofin Fast credit, and others.
Frequently Asked Questions
Personal Loans in Nigeria
- Palmcredit
- Okash
- Fast Money
- Nigeria-Fairmoney
- Branch
- QuickCheck
SMEs loans without Collateral in Nigeria
- Carbon
- KiaKia
- FastCredit
- EZ Cash
- QuickCredit
Online Microfinance Loan in Nigeria
- CIT Microfinance Bank
- Lapo Microfinance Bank
- Assets Microfinance Bank
- Accion Microfinance Bank
- AB Microfinance Bank
- HASAL Microfinance Bank
- Ekondo Microfinance Bank
Related Searches- 10 roles of small businesses in Nigeria
Conclusion
After you must have reviewed your options and decided which of the mentioned loan service providers you want to go with, then it’s time to apply for the loans that meet your financial demands and that you qualify for.
The profitability of the firm and the borrower’s ability to repay are the two most important factors in determining whether or not a business loan will be approved. You may be required to produce business documents such as a business plan, bank statements, tax returns, legal paperwork, and so on, depending on the lender.
