How To Get Business Loan in Nigeria

Today, I want to talk to you about something that is very important to business growth in Nigeria: how to get a business loan in Nigeria. A lot of businesses need a loan to improve their businesses because finance is a cardinal fuel for business progress. Loans may be gotten with or without interest, depending on who is giving the loan. Also, loans could come with or without collateral.

Collateral is something like a car, a house, a piece of land that you own, and/or any other tangible asset which is yours or which you have claims/rights to. Today in Nigeria there are many platforms, especially mobile apps, through which you can access loans without any collateral.

However, there are limitations to the use of such platforms the most typical of which is the limitation on the volume of loan sum which a business can get. For you to get a meaningful loan sum, you would have to contact a financial house like a bank, private loan givers, and non-bank corporate entities which provide high-volume loan facilities.

Business Loan in Nigeria

A business owner applying for Business loan in Nigeria

Typically, the 3 ways to get a business loan in Nigeria are:

  1. Getting a loan from relatives, friends or family
  2. Getting a loan from microfinance banks in Nigeria and
  3. Getting a loan from commercial banks in Nigeria

Often, options 2 and 3 above are usually most people’s favorite. Based on the information at my disposal, I will throw some light on the third option and give you some insight into the criteria for getting a loan from 4 commercial banks in Nigeria today.

The beautiful thing about this is that these commercial banks actually give business loans to small businesses collateral-free (at least as of the time of writing this). Things might change in the future. So, do well to re-check the criteria before you apply for and obtain a loan from any of the commercial banks in Nigeria that I discuss below.

Also, it is advisable to visit the banks and check if you meet the criteria that they set for getting a loan to finance your business. For now, some banks which give business loans in Nigeria are Wema Bank, Heritage Bank, First Bank of Nigeria Plc., and Stanbic IBTC Bank.

Let us review how each of these banks and the business loans that they give:

Wema Bank

Wema bank through its collateral-free loan has created an atmosphere for business owners to think big, start small, and eventually become successful. The loan which Wema bank gives to businesses ranges from N100,000 to N1 million without any collateral.

However, to qualify for this offer, the borrower needs to operate a business account with Wema bank and have a record of a steady transaction of about six months in his/her corporate business account with the bank. This means that will give you a business loan ranging from 100,000 to 1 million if you have operated a business account with them for six months.

Kindly walk into any branch of Wema bank to get more information on this.

Heritage Bank

Heritage Bank seeks to harness the skill and entrepreneurial spirits among Nigerian youths by providing timely and cheap loans to assist entrepreneurs to implement their business ideas. The bank also has a special package for NYSC members.

Heritage Bank’s loan facility is aimed at helping people in Nigerian marketplaces and whoever needs access to business finance through short-term borrowing from the bank. Kindly visit them to get more information on this.

They have a loan facility for people who want to start up small businesses and need between fifty thousand and 400 thousand upwards. There are loan packages for operators of large scale businesses.

Please, visit the bank to get more information on this. Some of their loans are collateral free with a few stipulated conditions attached.

Business Loan in Nigeria

First Bank of Nigeria (FBN)

First Bank of Nigeria (FBN) offers bank loans that are easily accessible to entrepreneurs irrespective of the type of business insofar as it is not illegal business. To be qualified for this loan the only thing required of you is to undergo a psychometric test and pass it.

Thereafter, you will provide the bank with your business plan and financial projections. They need your business plan to see how viable your business is and your capacity to repay the loaned sum. If you can convince and assure them of your capacity to repay your loan, you will be given the loan to fund your business.

Standbic IBTC Bank

The majority of Standbic IBTC Bank loans are designed to assist Small and Medium Entreprises (SMEs) acquire business assets and other facilities. The criteria for getting a loan from Standbic IBTC Bank are not enormous. Also, the loans given by the bank to SMEs are collateral free. If you are a big business you might need to present collateral.

To get a loan for a small business from Standbic IBTC Bank, you have to provide the full names and capacities of those who constitute the management team of the business. Also, you must state the reason why you need the business loan.

You would also provide:

  1. your business financial statement including an income statement,
  2. balance sheet,
  3. cash flow statements,
  4. personal statements of assets and liabilities of all partners in that business
  5. members and directors 12-month cash flow forecasts or financial projection,
  6. the amount of your own equity contribution.

The list above is really exhaustive, a bit complex but I suggest that you visit Standbic IBTC Bank to get more information about this. Again, this is for interest-free loans. So, kindly visit the bank to find out more about other loan packages.


Just like I said when I started this discussion, the best place to get business loans in Nigeria to a finance business today is the banks. This is because banks have the capacity to offer large loan sums. However, you can also get loans from your friends, relatives, associates and family members to finance your business. If you wish to use the bank, you need to visit the banking halls to get more information on how to get loans.

Also, remember that there are various loan packages available for you to choose from. So, you would have to choose the one that best suits your business needs. Different banks operate differently and have different loan packages for different classes of businesses. Some banks business loans come with interest, others don’t. Any of these can be assessed in the form of revolving credit, installation payment, order contract finance, etc.

This article explained some banks in Nigeria that offer business loans for startups and established businesses, collateral-free. You can contact these banks to get a loan to support your business.

It is advisable to visit these banks and get detailed information on how to access their loans instead of relying for unverified information on third-party blogs and websites. The five banks in reviewed in this article are Wema bank, Heritage bank, Stanbic IBTC Bank, and First Bank of Nigeria Plc (FBN). So, if you need a busiess loan I would suggest that you visit the banks and get detailed information about how to access loans especially loans without collateral.

Have you heard of Sumobank? Do you know you can save and make good returns on your savings with Sumobank today? To learn how to get business loans and improve your savings, click here to visit Sumobank

Thank you and have a splendid day ahead.



Leave a Reply

Discover more from Entrepreneur Platform

Subscribe now to keep reading and get access to the full archive.

Continue Reading