73 Views

How To Get Business Loans Without Collateral In Nigeria

If you are a small or medium business owner, establishing a relationship with a bank by opening an account can help boost your personal business.
Banks are the major lending institutions to individuals and organisations in the society. However, to access loans from banks, the borrower needs to understand what they require in order to qualify for any credit facility.
It is relevant to know that banks do not just give out loans to anybody that approaches them. The lender needs enough evidence from the borrower on his ability to repay the facility that he is asking for.
Banks usually tie their approval of loans to specific projects or purposes such as meeting urgent exigencies or supporting business plans.
Generally, it is easier for employees who work in well established organisations to get loans in banks where they domicile their salaries. This is because the banks can always deduct a certain percentage of their monthly salaries until the total money borrowed is repaid.
When the borrower does not have a salary account with the bank, the lender usually asks for collateral before granting loans.
However, without collateral, some banks can still give you loans if you meet the following conditions.
 
Register your business: Do not wait until you need a loan before you start your business. Have your business current account domiciled in your bank. When you already have an established relationship with your bank, it will be easy to get a credit facility because banks will only relate with their customers and not strangers.
 
Be specific on why you need the money: You have to be able to convince the bank that you will use the money for your business and not divert it to other things. The money may be needed to acquire new machines or pay for goods among other things. The bank wants to be convinced that you will be able to pay back.
How much do you need: Be specific on how much you want to borrow from your bank and when to repay. Loans for small and medium businesses do not usually exceed N1m.
You may also try and borrow some money from relatives and friends who will not ask for interest. This will reduce the loan you want to take from the bank because the bank will determine the interest rate you have to pay back on the money.
Also, keep proper account of your income, expenses and profit. Have a well researched financial projection that you can present to the bank to show your current financial flow and ability to repay the loan.
 
Guarantor: Because the bank is not requesting you to produce collateral, in most cases, it will demand for a guarantor in case your business plan fails and you are unable to repay the loan. Your guarantor is usually required to be working in a corporate organisation and he will show evidence of his financial worth in the form he will fill for you.
Bank statement: You may be required to present recent bank statements to show your business is still operating.
Source: Punch.

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Leave a Comment

Your email address will not be published.

Latest Posts

Meet The 99-Year-Old Inmate On Death Row In Enugu Prison With His Son. Photos
Shocking
37 views
Shocking
37 views

Meet The 99-Year-Old Inmate On Death Row In Enugu Prison With His Son. Photos

MT - December 14, 2017

A 99-year-old man identified as Celestine Egboluche from Imo State is arguably the oldest man in a Nigerian prison. According to evangelist Christian Okezie Chukwuka who paid…

How Nigeria Almost Lost Its Place At The 2018 Word Cup After FIFA Sanction
Sports
25 views
Sports
25 views

How Nigeria Almost Lost Its Place At The 2018 Word Cup After FIFA Sanction

MT - December 14, 2017

The Super Eagles escaped being kicked out of the 2018 World Cup, after FIFA awarded three goals and three points to Algeria on Tuesday. Nigeria was sanctioned…

#NobodyUgly: This Throwback Photo Of Olamide Baddo Before The Fame And Money Will Leave You Inspired
Entertainment
33 views
Entertainment
33 views

#NobodyUgly: This Throwback Photo Of Olamide Baddo Before The Fame And Money Will Leave You Inspired

MT - December 14, 2017

Nigerian indigenous rapper, Olamide Adedeji had a very rough background in the ghetto area of Bariga, Lagos State where he struggled with his poor family. The humble…

How Policeman Who Assaulted Tinsel Actress, April Joju Muse Was Punished
Entertainment
41 views
Entertainment
41 views

How Policeman Who Assaulted Tinsel Actress, April Joju Muse Was Punished

MT - December 14, 2017

April Joju Muse took to her Facebook profile on Tuesday, December 12, to share the video she made while the police officer was trying to make his…

I Go Dye Bags UK Ambassadorial Award And Who He Dedicated It To Will Amaze You
Entertainment
37 views
Entertainment
37 views

I Go Dye Bags UK Ambassadorial Award And Who He Dedicated It To Will Amaze You

MT - December 14, 2017

  Comedian, I Go Dye, was recently honored with a Make A Difference Against Corruption Today award by the UKAID and youth alive foundation MADACT. Posting photos of the…

Nigeria’s 2017 Trending Videos On YouTube
Entertainment
31 views
Entertainment
31 views

Nigeria’s 2017 Trending Videos On YouTube

PH - December 14, 2017

YouTube, on Wednesday, released its annual Rewind lists, showcasing the moments that captured the attention of Nigerians and YouTube users around the globe this year. The top…

Chimamanda Adichie’s “Dear Ijeawele, Or A Feminist Manifesto In Fifteen Suggestions” Listed Among the Best Books of 2017
Best of Nigeria
36 views
Best of Nigeria
36 views

Chimamanda Adichie’s “Dear Ijeawele, Or A Feminist Manifesto In Fifteen Suggestions” Listed Among the Best Books of 2017

PH - December 14, 2017

Chimamanda Ngozi Adichie‘s “Dear Ijeawele, Or A Feminist Manifesto In Fifteen Suggestions” has been listed among the Best Books of 2017 by both NPR Books and Audible.…

Ubi Franklin Throws Welcome Party For Daughter As She Arrives Nigeria
Entertainment
53 views
Entertainment
53 views

Ubi Franklin Throws Welcome Party For Daughter As She Arrives Nigeria

MT - December 14, 2017

Back in November 2017, Music executive turned entrepreneur Ubi Franklin revealed in an Instagram post that he’s a father-of-two and not one as people assume. He and his ex-wife, Lilian Esoro share…

Adesua Etomi, Late Moji Olaiya, Others Top List Of Nigeria’s Google Searches For 2017
Entertainment
33 views
Entertainment
33 views

Adesua Etomi, Late Moji Olaiya, Others Top List Of Nigeria’s Google Searches For 2017

MT - December 14, 2017

So much has happened in 2017 that it’s almost impossible to believe they all happened in one year. Today, Google announced the results of its 2017 Year…

Lepacious Bose Recounts How She Hated Herself Due To Her Weight, Yet Still Made People Laugh
Entertainment
46 views
Entertainment
46 views

Lepacious Bose Recounts How She Hated Herself Due To Her Weight, Yet Still Made People Laugh

MT - December 14, 2017

Comedian Lepacious Bose is celebrating 5 years of her weight loss journey with this inspiring post. According to her, the devil stole 25 years of her life…

Daddy Freeze Challenges Davido To Use A Tithe Of His Income To Help Someone And Here’s His Reply
Entertainment
63 views
Entertainment
63 views

Daddy Freeze Challenges Davido To Use A Tithe Of His Income To Help Someone And Here’s His Reply

MT - December 14, 2017

Top Nigerian singer, Davido, has accepted the challenge to use ten percent of his income to bring someone out of poverty. Recall that controversial Nigerian OAP Daddy…

How To Reduce The Risk Of Having Cancer – Oncologist Gives Important Tips In Ibadan  
Food and Health
54 views
Food and Health
54 views

How To Reduce The Risk Of Having Cancer – Oncologist Gives Important Tips In Ibadan  

MT - December 14, 2017

Dr Adebayo Oladeji, a Consultant with the University College Hospital, Ibadan, on Wednesday said youths could reduce their cancer risk by 90 per cent  through  healthy living,…

REVEALED: How EFCC Boss Ibrahim Magu Escaped Assassination
Politics
56 views
Politics
56 views

REVEALED: How EFCC Boss Ibrahim Magu Escaped Assassination

PH - December 14, 2017

The Acting Chairman of the Economic and Financial Crimes Commission (EFCC) Mr. Ibrahim Magu on Tuesday night escaped death by the whiskers as some gunmen stormed his…

Channels Television Emerges TV Station Of The Year For 12th Time
Best of Nigeria
45 views
Best of Nigeria
45 views

Channels Television Emerges TV Station Of The Year For 12th Time

PH - December 14, 2017

Channels Television has won the Nigerian Media Merit Award for Best Television Station Of The Year for a record 12th time. The award-winning station was presented with the coveted…

Davido In A Relationship With A New “Girlfriend”? (See Photos)
Entertainment
92 views
Entertainment
92 views

Davido In A Relationship With A New “Girlfriend”? (See Photos)

MT - December 13, 2017

Since the news of the birth of her 2nd child, whose mother is an American, the music star, Davido, has been reassured to keep his relationships hidden. Earlier…

5 Nigerian Politicians PDP Should Consider As ‘Presidential Candidate’ To Defeat Buhari In 2019
Politics
98 views
Politics
98 views

5 Nigerian Politicians PDP Should Consider As ‘Presidential Candidate’ To Defeat Buhari In 2019

MT - December 13, 2017

Nigeria’s major opposition party, Peoples Democratic Party (PDP), has hinted that it has begun the search for a ‘sellable candidate’ who can match President Muhammadu Buhari in…

Why I Did Not Choose Jos As Nigeria’s Capital – Yakubu Gowon
Politics
65 views
Politics
65 views

Why I Did Not Choose Jos As Nigeria’s Capital – Yakubu Gowon

PH - December 13, 2017

Yakubu Gowon, former head of state, says he would have made Jos Nigeria’s capital, but for the fear of being accused of “parochialism and favouritism”. He said…

New Study: Women More Attracted To Strong Men With Broad Shoulders
Romance and Love
67 views
Romance and Love
67 views

New Study: Women More Attracted To Strong Men With Broad Shoulders

PH - December 13, 2017

Women are more attracted to strong looking men with broad shoulders and big muscles, researchers have said. According to the study, men’s upper body strength accounts for…

Loading...