An Entrepreneur Could Raise Business Funds through:

  • Personal Savings
  • Contributions from Friends & Families
  • Government Grants
  • Venture Capital vs. Angle Investors
  • Using Crowdfunding Sites
  • Through Banks Loans
  • Corporate Societies and Associations


The lack of capital is one major problem affecting business startup, not just in Nigeria but globally. Sometimes, you may have a very good business idea but lacks capital to bring the idea to reality. This, has made many business ideas to only remain as idea. But here you will discover banks that give bank loans without collateral

Similarly, because of the prediction about the profitability of the idea, most entrepreneurs won’t mind getting a bank loan on a no collateral base. But who does that in this country? Giving a bank loan to a man of 30 may prove abortive not to talk of a person of early 20s.

To secure a bank loan you need a cogent and verifiable landed property or very important document to keep with the bank as a sign of your indebtedness to them. Unfortunately, the only verifiable property of the young entrepreneur is in there mind map – the business idea.

Anyways, not minding the required collateral usually asked by banks, their system of loan is most secured for anyone who want to get loan.

To secure bank loan for business startup, one most important thing to consider is the interest rate. And banks usually charge 5-25% interest rate or more for a period of 1-5 years short and long time business loan which is better compared to other lending bodies.

Banks in Nigeria can give bank loans as small as ₦50, 000 and up to ₦100 Million Naira depending on the scope of your business.

Interestingly, some Nigerian banks have awakened to the reality that most start-up entrepreneurs in Nigerian have only solid business ideas behind their heads, and no collateral to show for their loans.

And today, entrepreneurs can apply for quick bank loans without putting up their assets as collateral.

In this article, I’m going to explore 5 Nigeria banks that will give you a collateral free loan to startup your business. So, if you have a business idea you want to ventured into, and you don’t have the required capital, you can quickly access them.

However, the bank loan is not without criteria.

For you to be granted this collateral free loan, you need to meet some requirements, but not in form of collateral.

5 Nigerian Banks that Will Give you Business Loan Without Collateral
1. Heritage Bank

Heritage Bank has through its efforts accrued the accessibility to SMEs business funds in Nigeria. The bank has engineered initiatives around promoting access to the marketplace for SMEs.

One of its major programs is the Youth Innovative Entrepreneurship Program (YIEDP) supported by our very own Central Bank (CBN) – in recognition of its commitment to SME and Youth development.

The programme (YIEDP) is geared toward harnessing the skills and entrepreneurial spirits among the swarming Nigerian youths – by providing timely and cheap loans to assist entrepreneurs implement their business ideas.

The bank must have come to the realisation that capital is a big problem to entrepreneurs. Thus, the reality of this collateral free loan.

The fund is also to support youth corps members, those in our market places and whoever needs to access business finances through short –term borrowing from the bank.

2. First Bank Nigeria Plc

First Bank is another awesome bank too. It has designed plans to make available non-collateral loans for Enterprises in Nigeria. This initiative is aimed at empowering economic growth within the Nigeria SMEs sector through their collateral free loan schemes.

One best thing to note about the bank loan is that; it’s simply accessible to entrepreneurs not minding the type of business you do, location or your business size.

As an interested businessperson in this loan, the only thing required of you is to pass through psychometric sort of test, thereafter, provide the bank your business plan and financial projection.

And boom! like magic, you’ll get your disbursement alert from the bank.

3. Stanbic IBTC Bank

The Stanbic IBTC Bank offers Nigerian entrepreneurs a good chance to get business loans while not providing collateral.

These loans area unit designed to assist SMEs acquire business assets and other facilities.

However the assets solely become your own once you make the last payment on the received loans.

To apply for Stanbic IBTC non-collateral loan, you must provide the bank with these subsequent information:

Stanbic IBTC Collateral Free Loan Criteria

a. The full names and capacities of those who will sign;

b. CVs of each members of the management team;

c. The reason why you need the business finance;

d. Your business’ financial statements, including an income statement, balance sheet and cash flow statements;

e. Personal statements of assets and liabilities of all the partners, members or directors;

f. A 12-month cash flow forecast or financial projections;

g. The amount of your own equity contribution and the source of the funds.

4. Guarantee Trust Bank Plc

GTBank Plc conjointly offers entrepreneurs opportunities to get loans without any form of collateral. The collateral free loans are designed to stimulate growth for micro, small and Medium scale Enterprises (MSME) within Nigeria.

They provide good finance choices for your business that permits your business to create on its success and arrange for growth by making available quick loan to finance your business needs. This method help you to be able to withdraw money from your account even when there is no cash in it and SME friendly accounts that you just will open and begin with.

So, if you bank with this bank, and require quick loan without collateral, it’s necessary you do your findings of this offer by walking into any of its branch for enquiry.

Also, remember there are various packages available. So, endeavor to choose the one that best suit you.

The bank’s SME loans can be accessed in the form of:

a. Revolving Credit;

b. Installment Loan;

c. Local Purchase Order (LPO) Finance and

d. Contract Finance.

Further, the GTbank provides entrepreneurs with access to short and medium loans without collateral.

5. Wema Bank

Wema Bank is a bank passionate about helping small businesses grow on all fronts. Beyond providing financial support, it also provides SME financing package for working capital, as well as access to select business forum organised by the Bank for SMEs. But that’s not the purpose of this article.

The bank through its collateral free loan, is creating an atmophere for business owners to think big, start small and eventually become successful.

The loan which Wema Bank gives to businesses ranges from ₦100,000 to ₦1 million without any collateral.

However, to qualify for this offer, you need to operate a business account with them an have steady transactions for 6 months in your corporate business account.

To show their readiness to give out these loans to entrepreneurs to expand and grow their businesses, the bank even has a loan calculator on its website – which helps interested loan applicants to calculate how much they would be expecting from their loan application.


Lately, as a result of constant sourcing for loan, myraid of platforms has emerged, and even money lenders with the promise of loan without collateral.

Well, not bad, but you have to trade with caution. Most times, you are asked to provide your Bank Verification Number (BVN). This is very risky due to scammer. Anyone who have access to you BVN, have access to you bank account. And you know what that mean.

Finally, another thing to consider is the interest rate. While banks places their interest rate at 25% per annual, Microfinance banks ask for 5% per month and online lenders require 12.5% interest rate or more depending on the lender.