5 Nigerian Banks That Give Business Loan Without Collateral In A long Time
5 Nigerian Banks That Give Business Loan Without Collateral In A long Time.
How you value your company at these early stages is crucial for long-term success. For one of the most difficult tasks for startup entrepreneurs who seek early investment is determining the value of their company. So, most times entrepreneurs would consider to order loans to reduce the financial stress of financing their business investment, when they are aware there are financial organizations giving out loans to Nigerians for majorly business purpose.
From observation due to the improvement in technology and in banking sectors, accessing loans has taken a different dimension with a couple of service providers giving out collateral-free loans without the need a proof of employment or even a visit to a banking hall for some paperwork. Have you ever attempt to gain access to loans? If you think financial aspect is why your business has not taken a new turn, then consider this information is much important to solve your long waiting problem surfing for banks in Nigeria that will offer you loans.
According to Wikipedia, A loan is a debt provided by an organization or individual to another entity at an interest rate, and evidenced by a promissory note which specifies, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and date of repayment.
Why do we need a loan is because everyone has a need either for business purpose, or to finance a project. But today, I simply show you 5 Nigerian Banks that give business loan without collateral in a long time.
The First Bank of Nigeria has made plans to provide non-collateral loans for Small and Medium Enterprises in Nigeria. This initiative of the bank is aimed to empower economic growth in the Nigeria SME sector through their loan schemes. The great thing about First Bank’s unsecured loans is that it is easily accessible to entrepreneurs irrespective of the business type, location or size.
As an interested entrepreneur, the only thing you need to do is to go through a psychometric test, pass the test and then provide the bank with your business plan and your business financial projections.
Heritage Bank has also increased the accessibility to SMEs business funds in Nigeria. The bank has also built initiatives around promoting access to the market for SMEs.
One of their major programs is the Youth Innovative Entrepreneurship Program (YIEDP) backed by the Central Bank of Nigeria – in recognition of its commitment to SME and Youth development. The programme is aimed at harnessing the latent entrepreneurial spirit among the teeming youths by providing timely and affordable loans to help implement their business ideas.
The fund is to support youth corps members, market women and whoever desires to access business finances through short –term borrowing from the bank.
Diamond Bank Plc also offers entrepreneurs an opportunity to obtain loans without collateral. The bank’s non-collateral loans are designed to stimulate growth for Micro, Small and Medium Enterprises (MSME) in Nigeria.
Diamond Bank Plc has about 5 SME friendly accounts that you can open and start with. If you want a loan without collaterals, you’ll have to look at the bank’s SME loan packages and choose the one that is best to your kind of business.
Diamond Bank’s SME loans can be accessed in the form of: Revolving Credit, Installment Loan, Local Purchase Order (LPO) Finance and Contract Finance. Thus, Diamond Bank gives you access to short and medium-term financing for working capital, as well as assets purchase needs with reduced collateral requirements.
4. Wema Bank
Before you approach any of these banks for a non-collateral loan, it would be in your best interests to first open, run and maintain an account (corporate preferred) with such a bank for a period of 3 to 6 months.
You should also be armed with a sound Business Plan and a solid Repayment Plan for the loan. Unlike other Nigerian banks, WEMA has more dealings with retail businesses. The bank has built its structure around retail banking, conducting transactions with market women and real SMEs.
It is worthy to note that Wema Bank gives business loans from ₦100,000 to ₦1 million without any collateral. All you need to do is to have steady transactions for 6 months in your corporate account to qualify for their loan offers.
To show their eagerness to give out these loans, the bank even has a loan calculator on its website – which helps interested loan applicants to calculate how much the bank would be expecting from your loan request.
The Stanbic IBTC Bank offers Nigerian entrepreneurs a great opportunity to obtain business loans without providing collateral. The loans are designed to help SMEs buy their business assets. However, the assets only become your own when you make the last payment on the received loan.
To apply for Stanbic IBTC non-collateral loan, you should be prepared to provide the bank with the following information:
Stanbic IBTC Loan Application Requirements
The full names and capacities of those who will sign;
CV of each member of the management team;
The reason why you need the business finance;
Your business’ financial statements, including an income statement, balance sheet and cash flow statements;
Personal statements of assets and liabilities of all the partners, members or directors;
A 12-month cash flow forecast or financial projections;
The amount of your own contribution and the source of the funds.
Finally, please note that the success of any business venture is not dependent on bank loans, what matters most is the business management and fund maximization. Experience, knowledge and understanding are required if you want to run a successful business. Don’t be discouraged if the first few phases of starting your own business don’t turn out to be what you expected. Entrepreneurship is a volatile world, but as long as you stay committed to improving your ideas and continue to work hard, you’ll always have a chance to succeed