Top 5 Institutions That Offer Loans Without Collateral And Affordable Interest Rates


Just like you, many business owners need bodies that offer loans without collateral. Are you thinking of expanding your business and establishing a broader market presence to boost your brand and sales? Then it must have occurred to you that you need capital to carry out that expansion. There are various ways you can raise money for your business expansion, which will be treated in subsequent articles. Subscribe to our newsletter, so you don’t miss out on those insightful tips.

For this article, you are going to find out the top 5 institutions that give loans to SMEs without collateral and affordable interest rates. Please note that the success of a business venture is not dependent on loan or the amount of loan you collect; what counts in your venture success is business administrative skills, cash flow management, effective marketing strategies and customer support and retention.

Top 5 Institutions That Offer Loans Without Collateral And Affordable Interest Rates
An SME owner needs funding to run the business

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If you are looking for a business loan for a startup or loan to expand your operations, you may have to contact your offline or online loan lender and fill out their loan request forms. Most SMEs find it difficult starting and growing their business. This is due to stiff regularities towards obtaining loans such as providing collaterals and the never-ending paper works and ‘oga at the top’ formalities. 

Most financial institutions have awakened to the fact that startup entrepreneurs in Nigeria have solid business ideas and little funds to back those ideas. Hence, collateral to get loans thereby enabling them to give loans without collaterals more easily and effectively.

Here are our top 5 institutions you can get a loan facility without collateral at an affordable interest rate;

1. First Bank Plc

First Bank of Nigeria provides collateral-free loans to SMEs in Nigeria to empower economic growth in the SMEs sector through their loan schemes. The First Bank of Nigeria SMEs loan is open to all entrepreneurs irrespective of business type, location, or size. If you are interested, all you need to do is go walk into any FBN branch and go through a psychometric test. After this, provide the bank with your business plan and financial projections. 

2. Lydia

Lidya is a USA holding financial institution that provides access to credit and finance across frontier and emerging markets. Their team is spread across three continents and five countries which are USA, Portugal, Nigeria, Poland and the Czech Republic.

To assess credit risk, Lidya uses close to 100 data points to evaluate businesses, build a credit score unique to each business, and disburse loans in 24 hours or less.

Businesses that are looking for 50,000 NGN to 30,000,000 NGN in the working capital are able to apply online. You can also apply via their mobile phone and get a decision in 24 hours.

 Visit to get started.

3. Lagos State Employment Trust Fund (LSETF)

The LSETF Loan Programme aims to create affordable access to funding for small businesses to grow, expand, create wealth, and put people to work. This loan scheme, which attracts only 5% interest rate per annum, is available to business owners who are registered residents of Lagos State. The Lagos State Employment Trust Fund (LSETF) was established by The Lagos State Employment Trust Fund Law 2016 to provide financial support to residents of Lagos State. Its aim is to provide jobs, create wealth, and to tackle unemployment.

Visit their website for more information and for your application.

4. Carbon for SME

Carbon is a fintech startup based in Lagos that offers credit facilities to individuals and Entrepreneurs. Formerly known as Paylater, you can get up to 20m Naira to grow and expand your business at a 5% interest per month.

Applying for an SME Finance loan is super easy, no physical branch visits, hidden fees, bulky paperwork, or collateral is required. However, they will require some business documentation, such as your bank statement for six months to calculate your loan offer. 

Visit to get started.

5. Access Bank Nig. Plc

Unlike other Nigerian Banks, Access bank has more dealings with retail businesses. They have created a market niche within the SMEs sector by conducting and building a structure around retail banking. You can access loans from #100,000 to #1 million without any collateral. All you need is open a corporate account and build your financial history with them for about six months to be eligible for their loan offers. 

To show their commitment towards SMEs, they have included a loan calculator on their official website. This facilitates application and business decisions. Cool!

And there you have it, our top 5 institutions to apply for loans without collateral and boost your business expansions for wealth creation and economic development. 

Remember to carry out a full financial assessment of your business. This helps to ascertain if and when you need a loan for your business expansion. It also helps you to settle for an institution that is in line with your business goals and objectives. 

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