Top 15 SME Loans Without Collateral in Nigeria & How to Apply in 2024

  • November 19, 2023

SME Loans Without Collateral in Nigeria: Have you ever dreamed of a world where obtaining a loan for your Small and Medium Enterprises (SMEs) in Nigeria doesn’t involve staking your hard-earned assets?

Does the idea of securing a business loan without collateral in Nigeria seem like mere wishful thinking?

If so, you are about to encounter a pleasant surprise.

In this comprehensive guide, we are casting a spotlight on the top 15 SME loans without collateral in Nigeria. These aren’t fables, but real, accessible financial solutions designed to spur economic growth by empowering SMEs.

Let’s embark on this enlightening journey together, shall we?

SME Loans in Nigeria: A Brief Overview

SME loans without collateral in Nigeria, also known as unsecured business loans, are financing options that allow small business owners to access funds for their enterprise without having to put up collateral.

These types of loans are attractive for entrepreneurs who may not have the assets or resources to pledge as collateral.

Unsecured SME loans are typically offered by financial institutions, such as banks and credit unions, and can be used for a variety of business purposes, such as purchasing inventory, expanding operations, or hiring additional employees.

Although they usually come with strict terms, business loans without collateral in Nigeria can be a valuable financial instrument for entrepreneurs looking to grow their businesses without committing their personal or business assets.

Having known that, let’s take a look at the best small business loans without collateral providers in Nigeria.

Check Out: Top Federal Government Loans for Small Businesses in Nigeria

Top 15 SME Loans Without Collateral in Nigeria 2023


Zedvance is a fast-growing and reliable fintech platform that offers easy business loans without collateral in Nigeria. This lending platform offers up to 5 million Naira worth of loans for all business purposes.

By just creating an account with them, applying for a loan and answering some basic questions, you can get a loan disbursed into your account within minutes. Zedvance loans tenure could last up to 18 months, and they also offer fair interest rates.

Salaried individuals can also enjoy a loan from this platform. This loan may be used to fund a side business.

Related: Loan Apps that Give Higher Amounts in Nigeria


sme loans without collateral in Nigeria

Formerly Paylater, Carbon is a popular loan app and lending platform in Nigeria. Although it is mainly known for offering personal loans, small business owners can also apply for a collateral-free SME loan on the platform.

Carbon offers small business ventures up to ₦20m to grow and expand their enterprise. This loan doesn’t require any collateral, guarantor or even paperwork. Within 2 to 5 business days, you could can a loan worth millions of Naira credited into your account from Carbon.

Carbon offers very flexible terms on its SME loans. Once your business is at least 6 months old with a minimum of 1 million Naira monthly revenue, you can access this loan.


SMEDAN is a government-backed project that provides fast and easy SME loans without collateral in Nigeria for entrepreneurs in need of business capital. Aside from offering financing, SMEDAN is also focused on developing small and medium-sized enterprises.

Without any collateral whatsoever, you can also be one of the over 700 SMEs that have been empowered by this project.

See Also: Top 10 Banks That Give Loans Without Collateral in Nigeria


If you want to get a business loan without collateral in Nigeria in dollars, Lidya is one of the few platforms that offer this lending service. On this platform, you can access a minimum of $500 SME loan, and a maximum of $15,000.

To get a loan approval from LIDYA, must be using their wallet for your business transactions. This will help them constantly analyze your transactions and determine the loan amount, tenor and flexibility of repayments that you are eligible for, making it easy to give you loan offers instantly.

This platform’s loan terms are very flexible and it also offers a fair interest rate.


If you’re running a medium size business, you can get a loan ranging from $100,000 to $1.5 Million from Grofin. As huge as this loan amount is, you don’t need any collateral to get approved once you pass their basic requirements.

Grofin lets entrepreneurs submit their loan applications online via their website. Just like Lidya, Grofin offers flexible loan terms, and also fair interest rates on loans. Grofin loan tenor is also amazing, making repayment very flexible.

Related: Top 14 Platforms for Urgent Loans Without Documentation in Nigeria


business loans without collateral in Nigeria

Aella Credit is one of the most reliable and transparent personal and business loan apps in Nigeria. This app offers Nigerians instant loans within just five minutes for various purposes, and no collateral or documentation is needed.

All you need to get a loan from Aella Credit is just to download the app from App Store or Play Store, create an account using your original details and apply for a loan. This platform offers a reasonably huge loan amount with a relatively long tenure.

Aella Credit is one of the most flexible apps for an online business loan without collateral in Nigeria.


KiaKia is a peer-to-peer lending platform that connects borrowers with lenders. As a small business owner, you can create an account on KiaKia, find an investor and accept their loan offer.

Loan offers on KiaKia come with relatively low interest rates, and they are very secure, despite getting them from the platform user instead of a lending company. KiaKia uses credit scoring and credit risk assessment algorithms in offering both personal and SME loans without collateral in Nigeria.

Read Also: How to Get 5 Million Naira Loan in Nigeria


In less than 24 hours, you can get granted collateral free business loans in Nigeria from Fast Credit. Just like SMEDAN, FastCredit was launched to help in the growth of small businesses by offering them unsecured loans.

Fast Credit business loans could last up to 15 months with flexible repayment options. This platform also offers cash loans to employees of corporates such as banks, TELCOs, Insurance/other financial institutions, FMCGs, Pharmaceuticals, Aviation, Oil and Gas employees etc to enable them urgently meet various consumer needs.

Aside from loans, Fast Credit also offers an amazing investment solution that comes with an attractive RIO for a period ranging from 90 days to 360 days. This company is regulated by the Central Bank of Nigeria, so, they can be trusted when dealing with both in terms of loans and investments.

See Also: Top 15 iPhone Loan Apps in Nigeria


Brass is also a regulated micro-finance bank that offers small business owners and low-income earners fast and easy loans to invest in their businesses or fund a side business. Just like others on this list, Brass doesn’t require any collateral whatsoever to get your loan application approved.

With the Brass mobile app, you can carry out lots of banking services, including applying for loans.


Sme loans in Nigeria without collateral

Owned by Sterling Bank, Specta is a leading online lending platform that offers both personal and business loans without collateral in Nigeria. You can download the Specta app from Playstore, create an account, and apply for a loan.

On Specta, you can access up to 2 million Naira loans in 5 minutes without any guarantor, paperwork or documentation. As a small business owner, you would use the Specta4Business product to get an SME loan.

The Specta loan terms are also great as they offer a fair interest rate, relatively long tenor and flexible repayment options.

Related: List of Fake Loan Apps to Avoid in Nigeria Right Now


If you’re operating an online business and need a quick loan for online payment, Credpal is a Nigerian finance company that could help. Credpal uses funded credit cards as a means of giving out loans to individuals and even businesses.

From this lending company, you can get access to up to a 500K business loan without collateral in Nigeria. You can use Credpal Credit Card to make payments both online and offline.

To get access to this credit card, you need to download the Credpal app and sign up. Once that is done, you’ll need to wait a while to get your credit limit ready on the card.

As soon as your credit limit is ready, you can request the credit card and get it delivered to your preferred location. Once you have the card, you can start using it for your business transactions, and repay monthly or when you reach your credit limit.

12. C24

C24 is a leading online microfinance firm that is focused to provide SMEs with no collateral loans without any stress. From C24 Capital Limited, you can get a loan worth up to N5,000,000 within just a few hours after submitting your application.

The lending company also offers very flexible loan terms as you do not need to visit their office to get your application assessed. Their loan lasts up to 12 months and there’s also room for extension.

Related: How to Get IPPIS Loan for Federal Workers


SME loans

QuickCheck is another leading online lending platform that offers small business loans without collateral in Nigeria. Although new users only get access to a very little amount, as a small business owner, you may need to contact them to apply.

Quick Check offers instant loans and this is usually done through their mobile app. Individuals can also apply for personal loans and get them disbursed into their accounts in minutes.


Stanbic IBTC is one of the best banks that give SME loans without collateral in Nigeria. The Stanbic loan services provide personal and business loans to both new and existing customers.

These SME loans are targeted at meeting working capital needs and achieving the business goals of the borrowers, while the personal loans are targeted at meeting the financial needs of parents and guardians looking to pay the school fees for their children or ward in any tier of the education system in Nigeria.

You must have an active account with zenith bank to apply for an unsecured loan. Also, your monthly income must be at least 20,000 Naira to get your loan approved.

Stanbic IBTC loans can be accessed via their mobile banking app or USSD. This service allows you to choose the loan repayment term that best suits your needs.

Read Also: How to Get 10 Million Naira Loan Without Collateral in Nigeria


Standard Chartered Bank is one of the top and leading firms that offers tons of financial services including loans. This bank’s lending product for businesses is called the Smart Business Loan.

This product is structured to provide access to SME loans of up to N20m without collateral. It offers easy access to loans through digital application forms and an automated repayment process.

The repayment plan can be structured to suit your business and flexible for up to 2 years. SC SBL also provides additional financing during your loan tenor by offering you a top-up after 12 months if regular repayments are made.

The Standard Chartered Smart Business Loan is available to both new and existing customers. So, you can create an SC account today, and apply.

Requirements to Get a Collateral-Free Loan as Small Business Owner in Nigeria

If you’re a small business owner in Nigeria looking to get a loan without the need for collateral, you’re in luck.

There are various options available as we’ve listed some above. But first you have to meet some basic requirements including:

Valid Identification

You’ll need a government-issued ID like a National ID, driver’s license, or international passport.

Business Registration

Your business must be registered with the Corporate Affairs Commission (CAC).

Bank Verification Number (BVN)

This is a must-have. It’s a unique identifier for each individual in the Nigerian banking system.

Bank Statement

Lenders usually ask for 3-6 months of bank statements to assess your financial behavior.

Business Plan

Although not always necessary, some lenders may ask for a detailed business plan.

Proof of Business Address

This could be a utility bill or any other proof of where your business is located.

Steady Income

Some lenders want evidence that your business has a stable income, which can be proven through bank statements or financial records.

Credit Score

While not all lenders look at your credit score, having a good one can increase your chances of approval.

Related: How to Get an Interest Free Loan in Nigeria

How to Apply for SME Loans without Collateral in Nigeria

Now that you’ve know what you need, the process of applying for a collateral-free SME loan is more straightforward than you might think. Here’s how to go about it:

Research Lenders

Various banks, fintech platforms, and microfinance institutions offer collateral-free loans. Look for the one that suits your needs the best in terms of loan amount, interest rate, and repayment tenure.

Prepare Necessary Documents

Gather all the required documents mentioned in the requirements section.

Fill Out Application

Usually, you can either apply online or visit the lender’s office. Complete the application forms and submit your documents.

Wait for Approval

After submitting your application, the lender will assess your eligibility. This may take anywhere from 24 hours to a week.

Get the Funds

Once approved, the loan amount will be disbursed to your bank account or given to you in cash.

Prepare for Repayment

Stick to the repayment plan you’ve agreed upon with the lender. Repayment methods typically include wallet fund and bank transfer.

Factors to Consider When Seeking No-Collateral SME Loans

Choosing the right SME loan without collateral in Nigeria involves more than just picking the first option that comes your way.

It’s essential to delve into the loan’s terms and conditions, dissecting aspects such as interest rates, the repayment schedule, eligibility criteria, and even the level of customer service.

Making informed choices in these areas can be the difference between a loan that propels growth and one that stifles it.

Check Out: List of Private Money Lenders in Nigeria


SME loans without collateral in Nigeria can be a viable option for small business owners who do not have the necessary assets to secure traditional bank loans.

While these types of loans may have higher interest rates and shorter repayment periods, they can provide a much-needed financial boost for businesses in need.

It is important for small business owners to carefully consider their options and choose a lender that is transparent and trustworthy. With the right loan and proper financial planning, small businesses can succeed and thrive in Nigeria’s dynamic economy.