Top 9 Legal Small Business Loans in Nigeria 2023
Small Business Loans in Nigeria: Getting legal small business loans in Nigeria is a big challenge for most small businesses, given the lack of credit facilities for small business owners and entrepreneurs in the country. However, external funds are sometimes needed to start or expand a business, as well as to cover day-to-day expenses such as wages and inventory.
However, finding, qualifying, and getting approved for small business loans can be difficult, the more information you have, the easier it will be. This article describes the most important methods and steps for getting a business loan.
Legal Small Business Loans in Nigeria
Here is a list of resources for small businesses:
1. Fastcredit
Fastcredit is one of 9 legal small business loans in Nigeria. What they do is provide value-based loans to those at the bottom of the pyramid who cannot access credit through conventional banking channels, in line with the Central Bank of Nigeria’s Financial Inclusion Policy.
They are present in more than five states of Nigeria. They provide financing for personal loans, small business loans, and partnership (group) loans.
Read also:What Is a Loan and How Does it Work?
2. GroFin
GroFin is one of only 9 legal small business loans in Nigeria and has supported emerging businesses in Africa and the Middle East with investment financing and business support. They provide SME finance/commercial loans to businesses in South Africa, Zambia, Nigeria, Ghana, Ivory Coast, and more.
Loan amounts range from one hundred thousand naira (#100,000) to one million five hundred thousand naira (#1.5 million).
3. Carbon Loans
Carbon Loan is an easy-to-use, fully online lending platform that helps Nigerian individuals and small businesses deal with unexpected bills or urgent cash needs.
They allow you to borrow up to 500,000 naira without providing collateral. Funds are usually released within 1-3 business days of application approval. If you pay your bills on time, you could get a higher line of credit on your next loan.
Read also:The Benefits of Collecting Business Loans
4. KIAKIA.co
The name “KIAKIA” is derived from the Nigerian slang meaning “Fast”.
What they do is, as you can reasonably say, they help Nigerians get personal and small business loans, while also allowing savers to lend at negotiable interest rates.
Kiakia Loans is a company that provides financial services to entrepreneurs and small businesses.
Their loan size can be up to N500,000
5. Smedan
What they do is stimulate, monitor and coordinate the development of the MSME sub-sector; Proposing, formulating policy proposals for the growth and development of small and medium enterprises is only part of their responsibilities.
They finance small and medium businesses.
6. Aella-Credit
Aella Credit develops systems that facilitate access to credit for Africans. The organization focuses on funding and employee empowerment, and currently partners with three major credit bureaus in Nigeria to provide customers with fast and affordable loans without paperwork. It is considered as one of the best lending platforms in Nigeria for small businesses.
Read also:How to Get Loan Without ATM Card, ID Card, and BVN
7. QuickCheck
Quick Check is one of the 9 Legit Small Business Loans in Nigeria. QuickCheck is a leading lending platform catering to both consumers and small businesses. QuickCheck provides financial credit to individuals and small businesses through mobile technology.
According to the portal, customers can get a quick and easy loan of up to 30,000 naira in 15 or 30 days without providing collateral.
8. Access Bank
This institution has loan formulas specifically designed for legal entities or companies that want to grow significantly. However, as an extension of CBN loans, they also have loans for individuals, specifically those in the creative industry. The bank remains one of the most popular banks in Nigeria and it offers excellent lending services.
9. Lendigo
Lendigo is one of the 9 legal small business loans in Nigeria and also a credit platform in Nigeria that offers business loans with no collateral required. Their loans are applicable to a wide range of businesses, as there is no specific base or industry; Lendigo claims to have provided N6 billion loans to more than 2,000 businesses to date.
Lendigo offers business loans across Nigeria. Their loans are primarily for small businesses and don’t require collateral. Loan amount ranges from 300,000 Naira to millions of Naira and it depends on the type of business applying for the loan. Interestingly, the Lendigo app is all you need to get this loan. How to get a small business loan in Nigeria
How to Get a Loan for Your Small Business in Nigeria:
1. Banks and financial institutions
People who want to start their own business but lack capital tend to look to banks for financial support.
Banks and financial institutions help businesses at every stage of their growth. Banks will lend to a startup if they are satisfied with the business idea, estimated profits from the business, ability to repay the loan (through business or otherwise), experience and management skills, and other collateral.
Despite the fact that most bank loans carry a high interest rate, it is essential that you do your homework by analyzing the wide selection of small business business loans from the major Nigerian banks. Before deciding which option to choose, make sure you understand the terms of the loan agreement and be sure that you will be able to repay the loan within the allotted time frame.
2. Government loan programs
Small businesses and growing businesses should always choose government-funded loans because they are cheaper.
Government business loans can help MSMEs cover day-to-day operating costs, growth and expansion costs, and infrastructure expansion. Several Nigerian banks and financial institutions are partnering with the government to provide business loans through government-sponsored financial initiatives such as YouWin, BOI and NPower, among others. These government-funded funds are usually in the form of grants or loans at low or no interest. This is why it can be much more difficult to get one due to the fact that you now have to compete with a large number of other business owners.
3. Loan service provider
We’ve all been in a situation where we needed immediate money to solve an urgent problem. What would be a better option if a bank loan takes a long time to materialize? At this point, the Internet or online lending services came into being.
Small businesses and individuals in Nigeria can now access quick and cheap short-term loans through FINTECH. Private companies like Paylater (a subsidiary of OneFi), KiaKia and Quick Loans are leading the way by providing short-term grants. Now you can apply for quick loans online and get your payment in just 24 hours.
This type of loan is only available for a short time (usually 3-6 months) and has a very limited amount of available capital, but it can be the best option if you need immediate cash to fulfill a customer order or supply your inventory.
