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List of Banks that gives Business Loans in Nigeria

Here's the list of Banks in Nigeria that gives Business Loans without collateral or paperwork.
Business Loans in Nigeria

As we all know that Small and Medium Size Enterprises (SMEs) are businesses that aren't too big. They have revenues, assets, or a number of employees below a certain limit. But don't let their size fool you! SMEs make up 90% of businesses worldwide and provide over half of the jobs, according to the World Bank. Even though they're small, they make a huge impact on the economy by employing lots of people, way more than big companies do.

The Central Bank of Nigeria (CBN) says SMEs are super important for the economy. They can create jobs, improve local technology, diversify output, encourage local entrepreneurship, and connect with big industries. So, helping SMEs is like planting seeds for a strong economy.

But one big problem for SMEs is getting money. They need cash to grow, but it's hard for them to get it from banks or other places. The usual sources of money like savings, family, friends, or loans can't keep up with how many SMEs there are. That's where SME loans come in. These loans are meant to help small and medium businesses expand or just keep running every day. They can use the money to buy equipment, stock up on inventory, or cover day-to-day expenses.

Hence, if you a startup in Nigeria looking for Loans to start your business ideas or you're already an established business looking for Loans to keep your business prospering, this article will highlights some banks in Nigeria that gives SME Loans without collateral.

Although, there are some Private Lenders for Business Startup Loans in Nigeria. These Loan providers usually have hidden fees and hidden terms and conditions. If you opt-in for these kind of Loan, you may end up regretting.

However, the best banks for small business startup Loans in Nigeria are capable of giving you instant business loan tailored to help your SME business grow without requiring any collateral or paperwork.

Banks that gives SME Loans without collateral in Nigeria

Here's the list of banks that gives Business Loans without collateral in Nigeria.

1. WEMA Bank's ALAT SME Loans

SME, standing for Small and Medium Enterprises, represents the backbone of many economies, including Nigeria's. SME loans, as tailored financial solutions, serve as vital tools for aspiring entrepreneurs looking to kickstart or expand their ventures.

At ALAT By Wema, they recognize the inherent challenges in managing small to medium-scale businesses and empathize with the aspirations of entrepreneurs seeking growth and innovation. Their suite of SME loans and financing options is meticulously designed to support your business ambitions, whether it's expanding operations, acquiring new equipment, or meeting crucial business needs.

Unlike traditional business loans, SME loans offered through ALAT boast competitive interest rates and streamlined documentation requirements, ensuring accessibility and affordability for entrepreneurs. By leveraging ALAT's digital platform, entrepreneurs can bypass the cumbersome paperwork typically associated with loan applications, gaining swift access to the financial support they need.

Moreover, beyond monetary assistance, ALAT's SME loans provide invaluable guidance and mentorship, empowering businesses to flourish in a competitive market landscape. To access these tailored financial solutions, entrepreneurs need only fulfill basic criteria, including holding an ALAT account, registering their business with the Corporate Affairs Commission (CAC), and maintaining a banking relationship with ALAT or WEMA for transactions. ALAT By Wema redefines the SME lending landscape, offering not just loans but a holistic support system for entrepreneurial success.

2. Standard Chartered Bank's Smart Business Loan

The Standard Chartered Bank offers Smart Business Loan (SBL) to businesses and startups in Nigeria. The SBL revolutionizes access to financial support for entrepreneurs seeking to expand their businesses, offering loans of up to N20 million without the requirement of collateral. Streamlined through digital application forms and an automated repayment system, SBL ensures a hassle-free process for entrepreneurs.

Furthermore, the repayment terms are tailored to accommodate the unique needs of each business, providing flexibility for up to 2 years. Moreover, for those requiring further financial assistance during the loan term, SBL offers the option for a top-up after 12 months of regular repayments, facilitating sustained growth and adaptability in business ventures.

With SBL, entrepreneurs gain unprecedented financial freedom and flexibility in expanding their businesses. By eliminating the traditional barrier of collateral, SBL opens avenues for ambitious ventures to thrive. The simplicity of the digital application process combined with the customizable repayment plans empowers entrepreneurs to focus on their business goals rather than navigating complex financial procedures.

Additionally, the option for a top-up after consistent repayments underscores SBL's commitment to supporting long-term business growth and success. With SBL, entrepreneurs can embark on their expansion journey with confidence, knowing they have a reliable financial partner by their side.

3. Union Bank's SME Loans

Union Bank's Cash Flow Lending provides working capital without the need for collateral, offering a maximum tenor of 12 months and loan amounts of up to N10 million. This option is accessible to both registered and unregistered businesses, aiming to support their short-term financial needs and operational requirements.

Invoice Discounting Finance offers a swift solution for cash flow challenges by leveraging unpaid invoices. With no collateral requirements, this financing option aligns with invoice payment dates, providing a maximum tenor of 90 days. It serves as an efficient tool for businesses to bridge temporary liquidity gaps without compromising their operations.

Distributor Finance caters to the diverse needs of key and sub-distributors along the value chain. This short-term financing option does not require collateral and offers a maximum tenor of 6 months. Businesses can access loans of up to N5 million, empowering them to manage their inventory and distribution channels effectively.

Asset Finance facilitates the acquisition of essential operational assets such as vehicles and equipment. With a maximum tenor of 48 months, businesses can benefit from flexible repayment terms and an equity contribution requirement of 30%. The financed asset itself serves as collateral, simplifying the borrowing process.

Term Loans provide SMEs with long-term financing solutions to support their growth and expansion initiatives. While collateral is required, businesses can access loan amounts dependent on their cash flow and operational needs. The maximum tenor of 48 months ensures that businesses have ample time to implement their growth strategies effectively.

Overdraft facilities offer SMEs the flexibility to manage fluctuations in their cash flow and address unforeseen expenses. Collateral is required for this financing option, and businesses can access funds based on their cash flow projections. The maximum tenor of 12 months, coupled with a 90-day clean-up cycle, ensures responsible financial management.

Intervention Funds, including offerings from institutions such as DBN, BOI, and CBN, play a crucial role in supporting SMEs across various sectors. These funds cater to diverse needs, including working capital, asset acquisition, and business expansion. Documentation requirements vary depending on the specific fund, providing tailored support to businesses.

Short Term Finance is designed to assist SMEs in restocking goods from specific suppliers. This financing option requires collateral and an equity contribution of 30%, providing businesses with the necessary liquidity to maintain their inventory levels. With a maximum tenor of 12 months and a 90-day clean-up cycle, businesses can efficiently manage their working capital needs.

Each of these financing options offered by Union Bank is tailored to address the unique challenges and requirements of SMEs. Whether businesses need short-term working capital or long-term investment financing, Union Bank's diverse range of loan products ensures that SMEs have access to the financial support they need to thrive and succeed in their respective industries.

4. Bank of Industry's Business Loans

The Bank of Industry (BOI) offers loans with very low interest rates, making them affordable for businesses. These loans are designed to help the beneficiaries succeed in their ventures. The bank ensures that the terms of the loans are favorable, giving businesses a good chance of success.

BOI provides generous repayment schedules for its loans. This means that businesses have plenty of time to pay back the money they borrow. By offering extended repayment periods, the bank aims to reduce the risk of businesses defaulting on their loans.

In addition to providing financial support, BOI also offers advisory services and support to businesses. The bank creates opportunities for improved business performance, both on its own and in partnership with other organizations. BOI understands that businesses need more than just money to succeed, so it offers guidance and resources to help them thrive.

BOI's loans and funding options are tailored to meet the specific needs of different types of businesses. Whether it's micro-enterprises, small and medium-sized enterprises (SMEs), or large corporations, the bank offers innovative financing solutions that cater to each sector's unique requirements. Moreover, BOI maintains a keen focus on supporting disadvantaged and vulnerable sectors within the grassroots community, ensuring that everyone has access to the financial support they need to thrive.

Bank of Industry Loan Requirements

The Bank of Industry (BOI) has specific requirements for businesses seeking loans. For Micro Enterprises, which include formal and informal businesses such as market women, traders, artisans, farmers, and cooperatives, the loan value is capped at a maximum of ₦10 million.

SMEs, which encompass registered small and medium-sized businesses in various sectors like Fashion & Beauty, Food & Agro Commodity Processing, Engineering, and Healthcare, can access loans ranging from ₦10 million to ₦2 billion.

Large Enterprises, which include registered big businesses in sectors such as Agro and Food Processing, Creative Industries, and Renewable Energy, are eligible for loans starting from ₦2 billion and above. 

To qualify for a BOI loan, businesses need to meet certain criteria. For Micro Enterprises, there is a focus on financing disadvantaged and vulnerable sectors at the grassroots level. SMEs must be registered and operate in underserved sectors, including Youth and Gender-focused businesses. Large Enterprises must also be registered and operate in specified sectors that contribute to sustainable development.

Additionally, businesses across all segments must provide necessary documentation, including a copy of their Corporate Affairs Commission (CAC) registration certificate and other relevant financial statements or projections. BOI may also require businesses to present specific documents depending on the nature of the loan or funding being sought.

5. Access Bank's Instant Business Loans

Access Bank is one of the best banks that offers Loans to business owner in Nigeria. However, this business loan is offered to business owner who's holding an Access Bank business account. You might be eligible for a quick business loan of up to ₦10 million on Access Bank's Instant Business Loan.

To check if you qualify, you can use the QuickBucks platform. Simply download the QuickBucks app or visit their website at Once you're logged in or registered, navigate to the homepage and look for the Instant Business Loan option. If you don't see this option right away, don't worry. You can still try a few alternative steps to find out your eligibility.

If you're unable to locate the Instant Business Loan option on QuickBucks, you can reach out to Access Bank directly for assistance. Contact your Access Bank Relationship Manager, who can provide guidance on the loan application process and assess your eligibility.

Alternatively, you can send a WhatsApp message to the Access Bank SME Care line at 0902 407 2068. Additionally, you have the option to email for further inquiries or assistance regarding the Instant Business Loan.

Access Bank is committed to supporting business owners with accessible financial solutions, and their Instant Business Loan offers a convenient way to access funding for your business needs.

6. Moniepoint's Working Capital Loan

The Moniepoint Working Capital Loan is a flexible loan designed to help your business grow without the need for collateral. With this loan, you can get the funding you need to expand your business without worrying about putting up assets as security. Plus, the collateral-free nature of the loan makes it accessible to a wider range of businesses.

One of the key benefits of the Moniepoint Working Capital Loan is its low collateral requirement. You can access a minimum of N1,000,000 and even more without having to provide collateral, making it easier for businesses of all sizes to qualify for funding. Additionally, the loan offers low interest rates, ranging from 24% to 40% per annum, ensuring that you can borrow money at affordable rates.

Another advantage of the Moniepoint Working Capital Loan is its quick approval process. You can expect to receive approval for your loan application within 24 to 72 hours, allowing you to access funds swiftly when you need them most. Moreover, the loan offers long repayment tenures that can be customized to match your business's pace, providing flexibility in managing your finances.

To access the Moniepoint Working Capital Loan, simply follow these steps: First, confirm your eligibility by logging into your dashboard to view available loan offers. Then, choose the offer that best suits your business needs. Once you've made your selection, we'll review your choice and transfer the funds to your account within 1 to 2 business days.

Finally, you can log back into your business dashboard to access an expense card, making it easy to manage your business expenses seamlessly. Learn more about the Moniepoint Working Capital Loan requirement and how to qualify for the Loan.

7. First Bank's SME Loan

At FirstBank, they're all about supporting SMEs. They offer a bunch of special financial products just for them. For example, they have SME Product Financing which gives loans to help SMEs grow. they also have things like Commercial Mortgage for buying business premises and Operational Vehicle Finance for getting new vehicles for business use. Plus, they've got special loans for specific industries like Petroleum Dealership Finance and Cement Distributorship Finance.

And that's not all! they have loads of other ways to help SMEs too. Like our SME Connect program, where we provide resources, webinars, offers, and services to help SMEs thrive. they're really passionate about helping SMEs succeed, so if you're one of them, check out their website to see how they can help you grow your business.

8. Fidelity Bank's SME Loans and Advances

In line with Fidelity Bank commitment to becoming the preferred financial institution for funding and support for MSMEs driving the growth of the Nigerian economy, they have developed specialized loan products to address the challenge of limited access to finance faced by MSMEs in Nigeria.

Fidelity Bank tailored financing solutions for MSMEs include:

1. SME Quick Loans and Commercial Support Short Term Loan

These are working capital loans designed to provide business owners with the necessary funds to address urgent cash needs for expanding their businesses. They are available to Micro, Small, and Medium-scale enterprises (MSMEs) with stable cash flows operating in select states including Lagos, Abuja, Enugu, Imo, Abia, Edo, Kano, Bayelsa, Kwara, Rivers, and Niger States.

2. Commercial Support Overdraft

This facility allows business owners to finance their short-term cash flow and working capital requirements, enabling them to further grow their businesses.

3. Traders Support Facility (TSF)

This short-term loan is specifically tailored for small and medium-scale businesses operating within well-organized clusters in the fast-moving consumer goods sector around the FESTAC area of Lagos State.

These financing options are designed to address the diverse needs of MSMEs across various sectors and locations, providing them with the financial support necessary for expansion and sustainability. Check out more Fidelity Loan portal to explore more Loan options for your businesses in Nigeria.

9. FCMB's Business Loans

FCMB offers different finance facilities to help small and medium-sized businesses (SMEs) in various ways:

1. SME Development Finance Facility: This helps businesses buy commercial properties like office buildings or warehouses instead of renting. You can choose a property that fits your budget and pay for it over a long time. It's a way for businesses to grow and have more control over their premises.

2. SME Asset Finance Facility: This finance is for buying new assets like machinery or equipment that your business needs for day-to-day operations. Whether you're a retailer, wholesaler, distributor, manufacturer, importer, or in any other eligible industry, this credit gives your business the chance to become more efficient and productive.

3. SME Working Capital Facility: These solutions provide funds to cover short-term obligations and upcoming expenses, either as a term loan or overdraft. With this support, your business can keep running smoothly without worrying about cash flow.

4. SME Invoice Discounting Finance (IDF) Facility: If your business issues invoices to customers, this facility helps you get paid quickly by discounting your invoices. It's especially helpful for service-based SMEs with diverse sources of income.

5. SME Local Purchase Order (LPO) Finance Facility: Similar to invoice discounting, this finance helps SMEs get paid promptly for fulfilling purchase orders from customers. It ensures smooth cash flow for your business while we handle the payment process.

10. LAPO MFB's Business Loans

LAPO MFB provides loans specifically tailored for Small and Medium Enterprises (SMEs) in Nigeria. Here's what you need to know:

  • Loan Amount: You can borrow up to ₦10,000,000 (approximately $23,800 USD) based on today's exchange rate.
  • Loan Term: The loan period can be extended for up to 12 months, giving you flexibility in repayment.
  • Application: Applying for these SME loans is easy and convenient. You can do it online through their website [](

LAPO MFB aims to be a reliable partner for SMEs looking to grow and expand their businesses. With over 3 million clients, they have built a reputation for experience and trustworthiness in the market. For more information, you can visit their website or contact them directly at 0813 984 0230. They'll be happy to assist you further.

The Bottom Line

Micro-financing is a financial service aimed at providing small loans and other financial products to individuals with limited access to traditional banking services, especially those with low incomes. These services, offered by microfinance institutions, cater to the needs of small businesses and individuals seeking financial assistance. While microfinance operates globally, it is particularly prevalent in developing countries where access to finance is scarce.

Microfinance offers several advantages to small businesses, including easier access to finance, flexible repayment terms, and lower interest rates compared to conventional financial institutions. By extending loans to businesses typically considered too risky by traditional lenders, microfinance institutions play a vital role in supporting entrepreneurial endeavors. Moreover, they provide valuable financial education and business training, empowering small businesses to better manage their finances and foster growth.

In developing nations, Microfinance has proven instrumental in poverty alleviation efforts, offering crucial financial resources to small businesses and empowering female entrepreneurs. Microfinance institutions contribute to economic growth by injecting capital into small enterprises, thereby creating employment opportunities and fostering overall economic development.

For banks offering business loans in Nigeria, recognizing the significance of microfinance and integrating its principles into their services can enhance their support for small businesses and drive sustainable economic development.

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About the Author

With five years experience in Media, Temmy Samuel's become a modern journalist, delivering impressive reporting about tech, finance, business and science around the world. More About Temmy

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