How To Get Loan Without Collateral In Nigeria

How To Get Loan Without Collateral In Nigeria

Accessing loans in Nigeria can often require collateral like land titles, jewelry, car documents, etc. Putting up assets increases the risk for lenders in case of default. This makes it difficult for many entrepreneurs and individuals without property to get funding. However, with the growth of fintech, new digital platforms now offer alternative credit scoring models to provide loans without collateral in Nigeria. In this ultimate guide, we will discuss various options available in Nigeria to get loans without collateral.

Banks that Offer Loans Without Collateral

While traditional banks still demand collateral for most loans, some have started relaxing these requirements for targeted customer segments. Here are some banks that offer collateral-free loans:

Commercial Banks

Access Bank: Offers loans up to ₦10 million without collateral to SMEs through its Alternative Banking Channels.

GTBank: Provides loans up to ₦30 million for working capital and asset acquisition without collateral through its GTEXPRESS proposition.

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Zenith Bank: Offers the Z-Woman product for up to ₦10 million collateral-free loans to women-owned businesses.

Government Banks

Bank of Industry: Grants loans from ₦500,000 to ₦100 million without collateral for various priority sectors through its Imported SMES Credit Facility.

Bank of Agriculture: Provides loans up to ₦10 million without collateral for agricultural businesses through its Agricultural Credit Guarantee Scheme Fund.

Fintech Apps for Collateral-Free Loans

Among many digital lenders in Nigeria, these fintech apps stand out for offering convenient loans without collateral:


FairMoney uses alternative data and AI-powered credit ratings to provide loans from ₦5,000 to ₦1,000,000 within 5 minutes without collateral. It has a simple user-friendly mobile app.


Carbon offers working capital loans from ₦50,000 to ₦1,000,000 through a quick online application process without collateral requirements.


As a leader in instant digital lending, QuickCheck provides instant cash of up to ₦30,000 through its mobile app by analyzing credit risk without collateral.


The branch offers collateral-free loans from ₦2,000 to ₦500,000 through its mobile app, evaluating creditworthiness using alternative data.

Other Options for No Collateral Loans

Apart from banks and fintech apps, here are some other alternatives:

Cooperatives and MFIs

Cooperatives like Cooperative Societies and Microfinance Institutions (MFIs) regulated by CBN provide small business loans without collateral.

Government Schemes

Schemes like the CBN Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS) and Government Enterprise and Empowerment Programme (GEEP) offer loans without collateral for qualifying businesses.


Crowdfunding platforms like Thabiso, Kickstarter, etc. can be explored to raise funds for business needs without putting up collateral.

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How to Apply for a Loan Without Collateral

Here are the basic steps to follow to apply for a collateral-free loan in Nigeria:

  • Choose a reputable lending platform like a bank, fintech app, or MFI offering loans without collateral.
  • Review their eligibility criteria regarding business/personal details, credit history, repayment capacity, etc.
  • Fill out the online or physical application form providing KYC details like BVN, business documents, identity proofs, etc.
  • The lender will evaluate your application and creditworthiness to decide loan amount and terms.
  • If approved, sign the loan agreement and receive the disbursement in your account.
  • Repay the loan as per the agreed schedule to maintain a healthy credit rating.


1. What documents are required for a loan without collateral?

Basic KYC documents like BVN, valid ID, utility bills, bank statements, business documents if applying for a business loan, employment letter, etc. may be needed.

2. How much loan can I get without collateral?

Loan amounts vary for different lenders – banks offer up to ₦30 million, and fintech apps ₦1-5 million depending on your credit risk profile.

3. What is the interest rate for loans without collateral?

Rates range based on tenure – banks charge 20-30%, while fintech rates are 2.5-5% per month or 30-36% annually on shorter tenures.

4. Can I get a loan extension or a top-up later?

Yes, some lenders like fintech apps allow existing customers to request incremental loan amounts or tenure extensions based on timely repayments.

5. How do I build a good credit profile for future loans?

Timely loan repayments, maintaining a healthy debt-income ratio, and expanding credit/savings history over time with different lenders can help access greater amounts later.

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Accessing loans without collateral has become possible in Nigeria through focused initiatives by banks and the innovation of digital lenders. This guide covered various reliable options to facilitate loans like banks, fintech platforms, government schemes, etc. Following due process and responsible financial behavior can help individuals and businesses in Nigeria attain the working capital needed to grow without asset pledges.


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