Steps to Get Loan In Nigeria Without Collateral

Filed in BUSINESS, RECRUITMENT by on November 8, 2019 0 Comments

How To Get Loans In Nigeria – With and Without Collateral

If you are a small or medium business owner, setting up a relationship with a financial institution by way of opening an account can assist to enhance your business.

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Banks are the predominant lending institutions to which people and organizations go for financial assistance especially loans. However, to obtain loans from banks, you need to know what is required before you can qualify for any loan.

It is cardinal to note that banks no longer just give out loans to everyone that reach out to them. They need sufficient proof from whoever wants to borrowmoney from them to rest assure that the person or institution has the potential to paybackthe loan when it is time.

See: How to Start Profitable Restaurant Business in Nigeria

Most times, Banks attach their granting of loans toparticular projects or events such as meeting up urgent situations or to help out the plans of the business.

Usually, it’s far less difficult for employees who work in longstanding and established firms to get loans from banks in which they have their salary accounts so that these financial institutions can deduct a certain amount fromtheir monthly salaries as way of payback tillthe borrowed money is completely paid.

If the person has no salary account, then what will be required is the collateral security. However, some of these banks may still offer some loans without requesting such provided you meet other requirements.

What You Should Do or Know About Getting Loans in NigeriaWith Collateral

Do Your Business Registration:

Do no longer wait until you want a credit facility before you start your commercial enterprise. Have your businesscontemporary account domiciled in your bank. You are likely to get loans with banks that you have a good relationship with, that is, that you have been banking with over time. This is because no bank will give attention toborrowers they arenot familiar with.

Have Specific Purpose For The Loan:

Try as much as possible to convince the bank that you need the money for your business and that you are not using it for something else. The money can be used to acquire new machines or pay for items amongst other uses. The bank wants to be satisfied that you will be able to pay back later based on your intention for the loan.

Know the exact Amount You Want and when you’ll pay back:

Be precise on exactly how much you need as loan from your bank and when you will pay it off. Any SME Loanis not more than a million naira.

You could also try and borrow some money from spouse and children and buddies who will not ask for interest. It will make the burden easier because bank loans could apart from being tedious to get have charges attached to them in the form of interests sometimes up to 10% of the amount borrowed from the bank.

Make Your financial Books and Business Plan Ready:

You must also have good records of your business. Your income and expenditure books must be intact. You must also have a good business plan because some banks will want to see it before they can give you loan. You may have to tender all these to the bank as proof of your income and expenditure flow, your vision and business strategy, your capacity to payback as at when due, etc.

You Need Guarantors:

When applying for bank loan, you may be required to provide a guarantor or guarantors. So, you need to get someone or people who will help surety you by filling the guarantor form for you. This is done just in case your business plan is not working according to plan or for onereason or the other, youcannot repair your loan.The guarantor you must present must be someone of financial integrity, working in a reputable organization

You Need Bank Statement Of Account:

One of the documents needed is your current statement of account showing how you operate the business.

How to Get Loan In Nigeria Without Collateral

To the general public and a wide section of the society, getting a loan in Nigeria without providing a collateral or guarantor is not feasible. But I want to say congratulations to anyone in need of such opportunity or someone that has been struggling to get started out in any business, but due to insufficient fund, he or she has been stranded.

AB Micro Finance

Getting a loan in AB Micro finance is quite simple due to the fact that the bank is owned by a group of Germans, that doesn’t work with protocols.

All you can do is to stroll into their office located in 9, Oba Akran road, Ikeja, Lagos and request for information on how you could get a loan for your business.

The staff will certainly bring out the form for the loan and you’ll fill it under the assistance of the micro finance staff in charge.

Within the next 24 hours, a loan officer can be assigned to you in order to come visit your shop or workplace and source information from you like the type of business you do, your weekly or monthly income and some little other information .

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Since the banking network covers mainly the Mainland of Lagos, it is important to be smart and get an area around Mainland as a physical location for your business.Within a week after all the regular procedures have been settled, your loan will be authorized.

Features Of The Bank

  1. Fast and transparent
  2. No hidden charges
  3. No preceding savings required
  4. All you need is an existing business

Kinds of loans

  1. AB commercial enterprise Flexi
  2. AB commercial entreprise Plus
  3. AB entreprise Max

AB micro finance is a part and parcel of worldwide micro finance network with distinct shareholders such as

  1. Get right of entry to maintenance (Germany)
  2. African development bank AFDB
  3. KFW (Germany)
  4. IFC (international financial institution)
  5. The Impulse (Belgium)

Ways To Acquire Soft Loan Without Collateral In Nigeria Using Mobile Apps

The processinvolved in getting a loan from banks in Nigeria is a long and rigorous one. As for people that have applied for the loan utility of any banks, the process is always too tedious and getting the loan itself almost impossible with requirements for several security instruments (i.e., guarantors). The terms can affect small-scale business owners, and many people want to apply for a quick loan in the country without going through the stress of seeking collateral and much interest charges.

It is also discouraging to have to wait till the end of the month before you can access the money when what you need is urgent money for your business.

Paylater and AellaLoan are technological driven startups that offerloans to people free of charge without requesting for anything. Theycharge as low as 7% interest rate or even less. They, in particular, have their target clientswho’re constant monthly income earners (i.e. salary earners)

Here are the easy steps to get a loan in Nigeria in 24 hours or less

Step 1

Download PaylaterorAellaLoan application from the Google Play store or iTunes; theydo not exceed a file size of 35MB each.

Step 2

Enter your financial info along with your credit card details and Bank Verification number (BVN) as they will be used to debit your account when the agreed repayment date reaches.

Step 3

After filling the form, submit the application form from within the app and if your request is granted, your account will be credited in much less than seventy two hours.

The loans normally start from around ₦10,000 and grow with each repayment which is being made. Please be aware that your loan request could be rejected if it does not meet the statutory criteria. The reasons for loan rejection range from an incomplete application form to not supplying the right information while signing up

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