Would you like to learn how to get a business loan in Nigeria? This guide was written with you in mind.
In this article, I’m going to show you how to easily get a business loan in Nigeria. You will discover the best companies that offer business loans to young entrepreneurs, their application requirements and process.
I have also written how to get a salary loan without collateral for salary and non salary earners. You will see the link to read it at the end of this guide. Sounds interesting, right? Read on then.
How Do I Get A Business Loan In Nigeria?
The cost of setting up a new business in Nigeria can be very draining. As a result of this, most businesses without a strong financial backup fail in their first or second year of operation. The very few that succeed usually do with the help of a business grant or loan.
Speaking of a business loan, there are 3 major ways to get it in Nigeria:
The first is to get it directly from banks. These can be commercial banks or microfinance banks.
In the later part of this article, I will show you the best microfinance banks to approach for a loan in Nigeria presently. For now you need to keep reading this to see other loan alternatives.
The second way to get a business loan in Nigeria fast is to get it from loan apps like FairMoney, Kwik Kash and several others.
I will also show you a complete list of the best loan apps in Nigeria currently at the end of this article. Just read on.
The third easy way to get a business loan in Nigeria presently is to get it from the Federal Government through their numerous empowerment programs like the NYIF, Non-Interest Household and Business Loans etc.
You can get more information on this Government empowerment loan schemes from NIRSAL official website.
Requirements For Getting A Loan In Nigeria To Start And Run Your Business
The following are the basic requirements for applying and getting a business loan in Nigeria currently:
1. A well detailed plan
If you want to apply for a business loan from any Nigerian commercial or microfinance bank, you need to first develop a business plan. Not just any kind of business plan – a well structured business plan.
Avoid business plans that make bogus and unrealistic claims all in a bid to get the loan. The people that will read them at the banks are highly rated professional business admins and loan experts. Don’t think they won’t know when you are just talking balderdash just to get approved.
Also avoid making your business plan look like an official money begging letter. Including things like “please sir, my mother died, I am orphan, my father didn’t leave any money for us etc.” inside the business plan.
The bank doesn’t give a crap about your late mum or your poor dad. Just give them your business idea and how you plan on repaying the loan if approved. That’s the main thing they want to see in the business plan.
2. A valid means of identification
This can be your Nigerian voters card, drivers license, international passport or national identity number.
3. A utility bill
The utility bill is for confirmation of your physical location. It’s always best to bring your own utility bill and not that of a friend or relative.
4. Active bank account
This is the bank account where the money will be paid into. Most times, you will have to make the loan repayment using this same account.
The Application Process
Once you have met the loan requirements, the next thing to do is to apply for it.
Depending on the company and type of business loan you are applying for, you can submit your application online through their website or mobile app.
You may also be required to do that in person at any of their branches nationwide.
After submitting your application, the company or rather financial institution, will review the application and then get back to you.
For some, this application review can take up to 3 months. Especially if you applied for NIRSAL Loan. For others like loan apps, it can take less than 24 hours to get a feedback on the status of your application.
Where To Get A Business Loan In Nigeria Fast
I have compiled a list of the best places to apply for a business loan and get fast approval.
Please see the following guides for more information:
Need a quick business loan in Nigeria? Kindly follow the information in this guide to get it as fast as you can.
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