Top 10 Financial Institutions In Nigeria That Give Loans Without Collateral

According to statistics, the major challenges of starting up a business in Nigeria is CAPITAL and in the quest to set up one, potential entrepreneurs go in search of companies that give loans in Nigeria without collateral to start up businessmen and women. The idea of starting up a business is to satisfy the needs of the general public or providing services that has tangible values to the individual or the organization’s needs.

Many start ups fail to carry out proper analysis before jumping into the business which is why 50% of start up businesses fail withing the first 5 years of their establishments which is these top 10 companies in Nigeria that gives loans without requesting for collateral carry out due diligence as regards the business.

Having not to give up your assets as a form of collateral for loans you are not 100% certain of its repayment is the best news that can happen to any start ups or business owners. Upon hearing the word LOAN, many attribute it to start ups only but the truth is that many business terms a going concern are running on loans up till date. Even the so called banks run on loans so the mentality of loans being just for fresh businesses or already businesses that needs resuscitation should stop henceforth.

Top 10 Financial Institutions In Nigeria That Give Loans Without Collateral 1

Information Required By Companies That Gives Out Loans In Nigeria Without Collateral

Your Home or Work Address

Even companies that give out loans to start ups with collateral carry out proper research as regards the place of work or house address of the loan applicant. It is not about being pessimistic about the start-ups disappearance but about being cautious and having all documents in place for investigations or tracking of applicants who default in loan repayment. You will be required to provide these information and a team would be sent to the addresses to verify the authenticity of your information. Though this procedures might not be necessary for online companies that gives instant loans to individuals and businessmen in Nigeria without collateral because being termed instant means time is of essence hence quick facilitation of the loan is paramount.

Loan Repayment Time

Any online company giving loans without collateral in Nigeria must request your loan repayment time frame, this would assist them in knowing how to process your documents. Please note that the longer the loan repayment time, the more the accumulated interest hence it is advised you collect loans with a shorter time frame of repayment.

We will not shy away from the fact that the interest on loans from these Loan givers in Nigeria is in double digits, that is, between 10% to 15% interest rate which must be factored into the business before applying for loans in as much as an entrepreneur is a risk taker, he or she should endeavor to take calculated risks that will not end up plunging one into debts.

Proof of Source of Income

Any financial institution in Nigeria willing to give out loans without collateral will definitely inquire a proof of your sources of income in order to be sure such loan applicant has the ability to repay should he or she breach the terms and conditions. The secret of not requesting for a collateral is that your current proof of income, the information from your current place of work as regards your salary scale, submission of your monthly payslip which must tally with your bank account statement is used to assess the type of loan grade you can be granted.

For example, a salary earner with a monthly take home pay of 50,000 Naira cannot apply for a loan of 1million naira and repayment will be an issue hence put the existence of the company in jeopardy. In summary of the above point, the amount of money being requested as loan must be in proportionate to your monthly earnings so the ease of payment would not be much of a burden.

Financial Statements From The Bank

A printed copy of your bank financial statement will be required as part of the documents needed for processing your loan request. Whether you are a salary earner or small scale business owner, a financial statement showing the cash-flow of your account in the past 6 month would be needed to ascertain the status of your earnings. This alone goes a long way om determining if you are eligible for such loan or not.

Certificate of Incorporation (Business Owners)

Whether it is a start up or existing business, a photocopy of your CAC certificate is required. It is a proof that your business is a registered entity in Nigeria and complies with the companies and allied matters act in the constitution. The form shows your status or position in the company’s hierarchical structure.

Birth Certificate

Birth certificate is mostly required by individual Loan givers in Nigeria. Since loans cannot be given to underage persons, they usually request for your birth certificate and this is confirmed manually.

After confirming the documents needed in applying loans in financial institutions that do not require collateral before approving loan applications from businessmen and workers, we will list the financial institutions that give loans in Nigeria without collateral and the extent of financial assistance you can receive.

We shall list the companies and thereafter explain in details who they are, where to find them and apply for loans, their online application links, their estimated interest rates and the maximum amount of money they lend out.

Top 10 Financial Institutions In Nigeria That Give Loans Without Collateral 2

Companies In Nigeria That Give Loans Without Collateral

Still on companies or better put, financial institutions in Nigeria that gives out loans without collateral, many upon hearing such would exclude banks because they are the pioneer of not having something tangible (Assets) to hold on before giving out loans to customers but those days are bygones. Now some new and old generation banks have keyed into the new system of giving loans without collateral and example of these banks are Heritage bank, First Bank of Nigeria, GT Bank and other Micro-finance banks.

Here will be listing both banks and other financial institutions that give loans not just to their customers but other eligible individuals and corporate entities without collateral.

1. Heritage Bank PLC (Personal Non-Collateral Loans)

This is a bank licensed under the central bank of Nigeria and it is insured under the NDIC (Nigeria Deposit Insurance Corporation). The bank has over 4000 staff strength with various departments. The department in-charge of loans and credit facilities is responsible for assessing the loan applicants file to ascertain if he or she or the corporate entity is eligible for loans.

Heritage bank offers both personal non-collateral loans and Personal Collateral Loans the difference is the interest rates. That is, the former attracts a higher interest rates than the later plus the time frame for loan repayment varies. See below for the break down of personal non collateral loans heritage bank approves to eligible persons:

i) Travel Loans – to fund you “get-away” expenses

ii) Rent Advance – to assist you with your rent

iii) Student Fees – It covers just schools in Nigeria for your children.

Why Choose Heritage Bank Non Collateral Loans?

i) The fact you do not have to present an asset that is 5 times worth more than the loan (no collateral) is enough reason to choose this category of loans.

ii) The speed of processing the loan is amazing. You can get your money in less than 72hrs upon providing all necessary details.

iii) Do you have cash trapped somewhere or a pending investment yet to yield its ROI and you need money for touring, payment of children’s school fees, medical expenses and the likes? then this category of loan is also for you, You can apply and your loan will be approved without collateral.

If you are interested, visit any heritage bank branch closest to you and request for a personal non-collateral loans and you will be directed on the steps to follow, however you could also download and fill their PDF Application form.


When RENMONEY was incorporated and the general public heard about their jingles on radio as regards giving loans without collateral it was absurd, many did not believe such was possible until testimonials from successful loan applicant became public did their offices start becoming a market square.

RENMONEY is a micro-financing institution that provides loans to both private individuals and Small and Medium Enterprises (SMEs) via their website, contact center and their team network. Are you scared of them folding up? you do not need to worry because they are regulated by the CBN and duly insured by the NDIC so they are regarded as a going concern. RENMONEY is one of the top 10 financial institution that gives loans without collateral so long as you meet their requirements. They give out loans to the following categories:

  1. Salary earners (9am – 5pm Workers)
  2. Businessmen and women
  3. Traders (Buying and Selling of articles or goods)
  4. Market men and women
  5. Others

RENMONEY interest rate is 10% for any amount collected and this must be repaid within a period of 12 months.

3. Access Bank (Diamond Bank) – Personal Loans

Diamond bank gives loan without collateral but it is restricted to certain areas. For example, you can gain access to loan for personal needs like traveling expenses, medical fees, vacations and shopping expenses and such category of loan application does not require a collateral from the lending institution.

Required Documents For Applying For Diamond Bank Non-Collateral Loans)

a) Functional Salary Account: First and Foremost, to be eligible for this category of loan, you must have an active diamond bank savings account. Usually the account is assessed and this would determine the amount of loan that you deserve though not a criteria but it is important you keep the account running. If it a salary account then you stand a better chance because the repayment of loan can be deducted direct from the source.

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b) Retail Lending Application Form: This is a form that you will take home and fill which will be submitted with other documents. Did i fail to remind you it would be given to you by Diamond bank? Fill it and submit as the said date because it would be needed in processing your loan request.

c) Employment Letter: Since this type of loan is best suitable for workers, you will be required to submit your employment letter. This would be included in your loan application file.

d) Confirmation Letter or Promotion Letter: In addition to your employment letter is your confirmation letter or promotion letter in your current place of work

e) Staff ID Card: As usual, every banking process require you present your identification letter. In this case you can use the valid means of Identification (international passport, driver’s license or national ID card) card or your staff identity card. If you are making use of your staff ID card, it must tally with the name of the company of your current place of work.

f) Place of Residence: You house address will be needed too. In this case your most recent PHCN bill would suffice.

So with the above at your disposal, you are eligible to apply for non collateral loan with Diamond bank.

4. The Stanbic IBTC Bank

Stanbic IBTC is among the few Nigerian banks that can give loans without collateral. A bank that has a market value of over 1.4trillion Naira is more than capable of granting loans to small and medium enterprise without requesting for collateral. The idea is that funds for such category of individuals and corporate bodies are budgeted for every financial year so the money is not the problem but the ability of the loan applicants to meet the requirement for such loan is what matters.

This type of loan in Stanbic IBTC is known as Fixed Term Loan (FTL), Unlike other loans, this type of loan has a fixed interest rate throughout the loan repayment period and since it is a non-collateral loan, Stanbic IBTC do not require any form of assets in form of collateral before approving your loan request. kindly see below, the requirements for applying for Stanbic IBTC Fixed Term Loan:

Requirements For Applying For Loans Without Collateral (Fixed Term Loan (FTL)

Firstly, the loan applicant must have been working with his or her organization for at least 6 month to be eligible to apply. Lest i forget, this loan is for working class persons and such individual must be a permanent staff of the company he or she is engaged with. Unfortunately, contract staff in any organization do no qualify for this type of loan.

Secondly, You must have a salary account with Stanbic IBTC to be eligible. If you do not bank with them and you so desire this type of loan, you can request to change your salary account with your current employer,

Thirdly you must be a Nigerian, you must be a Nigerian citizen by birth or otherwise. Non-Nigerians are not eligible to apply.

Fourthly, to be eligible for this type of loan without collateral at Stanbic IBTC, your net salary must not be less than 20,000 Naira monthly.

Lastly. only persons within the age bracket of 21years and above but not more than 60years are eligible to apply.

Meeting the requirements simply means you are automatically eligible for this type of loan but it is advised you pay back within the agreed time in order not to tamper with your credit worthiness.

5. GroFin

GroFin is a credible online financial company that gives loans without collateral to majorly Small and Medium Enterprise (SME) businesses not just in Nigeria but across Eastern and Western Africa. From our observations, most banks that give loans without collateral in Nigeria are short term loans or better put, loans for travelling, school fees payments, medical bills and other medium payments but that is not to say they are not playing a role in the development of SME’s in Nigeria since there are banks designated for such bank is the Bank of Industry (BOI).

Grofin being an online investment outfit gives out loans to start-ups between US$50,000 and US$1million. To start your online Loan application at Grofin, click the online application link and you are good to go.

6. AB Microfinance Bank (Non-Collateral Loans)

The ideal truth is that most people seeking for loans without collateral in Nigeria are the middle class persons, either working class or business owners and they fall within the age bracket of 25 to 45 years of age. AB Microfinance is one of the most popular Microfinance Banks in Nigeria that gives loans to low class earners most especially traders. Aside just approving such loans, they attach a staff of the company to assist you in managing such funds for ease of repayment.

AB Microfinance bank Ltd gives loans to the tune of N2 Million naira with a maximum maturity period of 1 year and 6 months. To qualify for a non-collateral loan at AB Microfinance Bank you must meet their requirements which can be seen from AB Microfinance website.

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Why Choose AB Microfinance Non Collateral Loans?

i) Unlike the commercial banks, AB Microfinance does not require deposits in form of savings plus no cash collateral required for applying.

ii) Other banks would require your 6months audited financial statement but AB Microfinance bank do not require such for processing your loan.

iii) Rather than collateral AB Microfinance would require a guarantor with good credit worthiness for fast approval of loans.

IV) You will be constantly be kept in touch as regards your loan repayment via SMS as this would keep you constantly reminded about the agreed repayment period.

V) Lastly, a loan calculator is made available for loan applicants before the real application so you can make an informed judgement as regards whether to go ahead with the loan or back off.

7. Smalls and Medium Enterprise Development Agency of Nigeria (SMEDAN)

In a bid to reduce the rate of unemployment amongs the teeming youth the Federal government of Nigeria introduced the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). This body was established by the SMEDAN Act of 2003 to promote the development of small and medium scale enterprises of the Nigerian economy.

The SMEDAN offers fast and easy business loans to Nigerian SME’s start-ups and existing businesses thus trigger the development of Nigeria’s MSMEs in a structured and efficient manner. To qualify for such loan, you need to register via their official portal and click on New SME registrant and follow the instructions.

SMEDAN is beyond funding SMEs rather they provide start-ups with the requisite skills and support needed to in growing their businesses. Being a government funded programme, they are very reliable and one of the best places to apply for loans without collateral. If you would like to apply, click their online application portal to start your loan request.

8. Zedvance

This is a finance institution with head over location at 177A, Ligali Ayorinde Street, Victoria Island, Lagos. Zedvance ranks amongst the top 10 online and offline company committed to providing consumer credit to business owners and working class persons.
At Zedvance you can borrow up to 5million naira in less than 24hrs but the maximum repayment time is 12 calendar months.

Zedvance monthly interest rate is 5.874%. To know the monthly interest rate you will be paying alongside the loan, multiply the amount you intend borrowing by 5.874% and add the value to the loan to arrive at your monthly repayment amount.

9. Quickcheck

If you are a student and need quick loans for handling emergencies then QuickCheck is for you.
The QuickCheck is the new is of the few mobile app built specifically for the purpose of granting fast loans to individuals and small start ups without collateral.
With Quickcheck mobile app you can access between 30,000 to 50,000 naira, however some terms and conditions shall apply.

Since the loan request via this mobile app is modest, repayment period is usually between 15 to 30 days or sometimes 60days based on the terms and conditions met or agreed upon.
It’s best suitable for students who are often online searching for how to get loans without collateral in Nigeria.

10. Lapo Microfinance Bank

For the 3rd consecutive year this Microfinance Bank has won the award for best Microfinance Bank in Nigeria. Renowned for granting quick loans without collateral to business owners, workers, event planners, parentsand guardians (education loans) and so on.

Lapo Microfinance Bank gives the following types of loans:

I) SME Loan
ii) Small Business Loan (SBL)
iii) Agric Loan
iv) Asset Loan
v) Education Loan
vi) Festival Loan
vii) Mid-Term Loan
ix) Overdraft
X) Regular Loan
xi) Special Loan

The above are the categories of loans available at Lapo Microfinance Bank. In as much as this post is all about where to get loans without collateral in Nigeria get your mind prepared for some documents which might not be readily available plus presentation of a guarantor which takes the place of providing a collateral.

In conclusion, the list of financial institutions that give out loans to businessmen, working class, travelers, tourists and for other short term financial obligations without collateral all have certain conditions and requirements which must be met in order to be eligible for loan application.

Also we were able to deduce from this post that most commercial and Microfinance banks that give loans without collateral usually request for a guarantor with good credit worthiness and such individual must have an active account with the lending bank.

With the above information at your disposal you can make an informed decision as regards which of the top 10 banks and other financial institutions that give quick and fast loans to individuals and working class persons without requesting for collateral.