Most often, business owners and entrepreneurs lack enough funding to start a business venture or keep an existing business running. When this happens, they start looking for where to get business loans.
Through Fintech platforms, an increasing amount of startups and entrepreneurs will now easily have quick access to loans without collateral. SMEs in Africa account for 50 percent of the continent’s GDP, 60 percent of employment, and 90 percent of all businesses in the continent.
However, a lot of Small and Medium Scale Enterprises (SMEs) find it difficult to access loan facilities in Nigeria.
Once all other guarantees of raising funds for your business have been used up, the best alternative is to think of opting for credit support in form of a loan, but usually many budding entrepreneurs see the process of approaching banks as difficult and challenging ones.
This reason is that large business corporations and enterprises are preferred over SMEs.
Not every loan offer is made for business owners, there are loan products that have been designed for SMEs to boost and finance their business. If you run a startup, we will provide you with some of the financial institutions that give the best SME loans in Nigeria.
Some of the loan organizations mentioned in this post are known to give out loans with ease, thereby helping you to eliminate the stress and headache you may face when lending money from commercial banks.
Over time, exposure to credit facilities for small and medium-sized businesses (SMEs) by lenders has largely been sought by majorly by startups and entrepreneurs.
Where to get SME loans for Business in Nigeria?
The following are the loan organizations that provide the best SME loans in Nigeria. If you are looking for money to invest for business purposes, you can consider any of the financial institutions listed below.
Small companies, most of the time will need extra financing or resources from the point of view of business loans in order to extend or make sure the company keeps running in good shape.
Lydia is one of the best digital platforms that give out loans to SMEs in Nigeria. They offer a monthly interest rate of 3.5% and give loans between $500 to $15,000 for your business.
Lidya evaluates your loan application and rates you using a credit score of 100 data points. They disburse loans to businesses based on the credit score or credit profile of the business enterprise.
You can apply for Lidya loans online using your smartphone or computer system.
RenMoney is a microfinance bank in Nigeria where you can get loans for your business. It offers loans as high as N4,000,000 with an interest of 2-4% per month. Applicants are required to present a recent passport photograph, 6 months bank statement and utility bill.
Your loan application is reviewed and processed within 24 hours. If approved, the loan gets paid to the account of the beneficiary you provided in your application.
Due to the varieties of their loan offer, you are advised to visit the website or contact the customer service agent to apply.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) is a government-backed agency that provides funding and support to SMEs in Nigeria.
Apart from funding, they also offer training and support to help entrepreneurs to thrive and succeed in their various business ventures. The minimum loan amount is N100,000 and they offer a monthly interest of 4%. Visit the website portal at cip.smedan.gov.ng and apply for the type of loan you want.
We have previously explained how you can get SMEDAN loan in this post.
Small and medium business enterprises in Nigeria can get funding from Grofin. Grofin provides loans for businesses in Africa and the Middle East region.
Business owners can secure business loans between $100,000 and $1,500,000; this should be good to start or expand your business. Visit the www.grofin.com to apply and submit your loan application.
This is an online loan company that gives out short-term loans to individuals and businesses in Nigeria. Quickcheck utilizes mobile technology to offer funds to borrowers.
The loan amount varies from N1,500 – N500,000 with a monthly interest rate of 5%.
6. PayLater (now Carbon)
Carbon is a fintech company that provides loans to individuals, startups, and established business enterprises in Nigeria. You can get a non-collateral loan of N500,000 to start your business.
The loan is disbursed to your account in about 24-48 hours after your application is approved. They use your Bank Verification Number (BVN) to determine the available loan packages for you.
This loan organization was created to allow people to get access to loan and credit facilities. Any internet user in Nigeria can visit the C24 website and get a loan.
They provide you with loans of up to N5,000,000 with an interest rate of 4% monthly. C24 are known for its quick loan processing time and swift disbursement of loans.
KiaKia provides quick and instant loans for small business owners in Nigeria. It uses machine learning, psychometry and some other metrics for its credit risk assessment algorithm in giving loans.
They have various loan offers and their interest rate is usually pegged around 3.5% per month. Visit their website to apply.
One-Fi gives out loans to credit-worthy individuals and businesses in Nigeria. If you have limited access to finance for your business, you can consider getting the One-Fi loan.
The loan amount ranges from N40,000 to N2,000,000 and the repayment circle is within 3 to 12 months.
10. AB Microfinance Bank
The AB Microfinance bank is known for offering business loans to Nigerians. The loan amount varies from N3 million to N20 million and their interest rate varies from 3% to 4.7%.
You do not have to open an account with them to get their loan. However, loans are restricted to people in Oyo, Lagos, and Ogun state.
These are the #FINTECH that provide the best SME loans in Nigeria. Make sure that you collect a loan that you can pay back within the repayment period.