Major Business Loan Givers in Nigeria
Last Week, I discussed with you Ways To Get Business Loan Without Collateral In Nigeria. Today, i will be dicussing with you major business loan givers in Nigeria. The Nigeria loan market may be separated among four exclusive types of loan providing institutions:
- Traditional/ Commercial Banks
- Microfinance Banks
- Money Lenders
- On-line Loan Providers
It’s very critical to completely apprehend the differences among the different loan providers in Nigeria, due to the fact every loan issuer is doing so with respect to specifics governing the loan products issued costs, duration, loan volume, processing and repay conditions.
Commercial Banks in Nigeria
Traditional or commercial banking establishments in Nigeria like First bank, Zenith bank or UBA are typical examples of traditional economic institutions in Nigeria that have a large network of bank branches. Banks offer different kinds of loans such as domestic loans, private loans, vehicle loans, MSME loans, business loans.
Bank Loans are typically tough to get, because banks are very restrictive when it comes to loan issuing. They most often than not require and also obtain a completely strict documentation of the loan applicants financial details, employment status as well as the borrower’s borrowing history.
Microfinance banks need to get permission and authorization from the central bank of Nigeria (CBN) bank to be able to operate and also give out loans. Microfinance Banks offer small-to-medium scale loans to individuals and corporate organizations. The loan limits mostly range from ₦50,000 to ₦3,000,000, whilst the loan repayment period usually lies between three and 365 days, that is, one year. Microfinance banks are generally much less restrictive than traditional or commercial banks, but they also require a strict documentation of the applicant’s records of financial and employment status. Microfinance Loans are usually issued without collateral. Microfinance Banks are also permitted to operate fixed deposit as well as savings accounts respectively.
Money lenders in Nigeria provide personalized or “customized” loans which are similar to that offered by microfinance banks. Those loans come with or without collateral and be up to ₦2,000,000 with loan maturation taking between one to twelve months. Money lendors are regulated by the CBN and in in order to offer loans, require a unique money-lending license. These money lenders are normally small, privately owned companies, and they offer flexible, repayable loans with certain interest rates, depending on the borrower’s financial history. These kinds of loan givers normally operate offline from their branches although they may have online application solutions too.
Online Loan Providers
New innovative on-line loan companies are emerging in Nigeria and provide a fast means to get loans in the country. Those loan vendors require a 100% on-line loan software (or through a mobile app), at the same time, borrowers can right away see whether or not a loan has been granted. Disbursement of those on-line loans generally takes within 24h via bank transfers or via a partnering financial institution such as bank or other forms of money lenders. loan volumes and limits normally range up to ₦10,000, whilst maturity would take say1-2 months maximum. The downside of on-line loan is that interests are comparably on the higher side.
Top 5 Banks in Nigeria That Give Business Loans
A loan may be regarded as a sort of financial obligation binding on both the lender and the borrower. It is undoubtedly an engine of growth for Small-scale and Medium-scale businesses. Loans assist individuals and businesses in financing a cross-section of their needs. Many kinds of loans exist today in Nigeria, some of which includes Salary Advance, Quick Loan, Mortgage, Overdraft, Auto Loan, Term Loan, etc. I have already discussed the different kinds of financial institutions which provide loans in Nigeria. However, loan of any kind may be gotten from any of the top five (5) banks discussed below in Nigeria.
Diamond Bank Plc
This bank provided its customers different kinds of loans including the following:
- Lease Finance facility,
- Credit cards,
- Salary advance,
- Small and Medium Enterprise loan,
- personal loan
For you to qualify for any of the loan product offered by Diamond bank, you must bank with Diamond Bank. Click here to visit Diamond Bank Website for further enquiries.
Zenith Bank Plc
Zenith Bank, one of Nigeria’s mega banks is noted for the provision of fast loans. That is, the processing time of loans at Zenith bank is very fast. different kinds of loans too. They provide loans to individuals and corporate organizations too. You can apply for a Zenith bank loan today to boost your business.. To know more about Zenith bank loans, please out click here to visit the bank’s official website.
Sterling Bank offers various kinds of loan to its customers to meet individual and corporate needs. For you to benefit from Sterling Bank loan, you must have a current account with the bank. It is a necessary prerequisite not only for Sterling Bank, but most other banks in Nigeria. Sterling Bank’s website is www.sterlingbankng.com
GTI Microfinance Bank
GTI Microfinance Bank, a subsidiary of GTI Capital Limited is situated at 127, Awolowo Way, Ikeja, Lagos. This bank offers loans to diverse categories of people including individuals, Small Scale businesses and Corporate Organizations. The repayment timeframe is usually 6 – 48 months upon loan disbursement. One of the several advantages of choosing GTI is that as long as you bank with them, you are guaranteed approval of your loan. You can find out more about this bank’s loan dynamics by paying a visit to their office address – 127, Awolowo Way, Ikeja, Lagos.
Apex Microfinance bank (Apex MFB)
Located in Kwara State, Oyo State with branches in other parts of the country, Apex MFB is targeted at meeting the financial needs of individuals who wish to expand their business. Their interest rate is also reasonable.