How to Apply for a Loan in any Nigerian Bank in 2024

Filed in Articles, Tutorials by on February 9, 2024

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Are you thinking about how to apply for loan in any Nigerian Bank? If yes, then we will provide you with a list of some banks in Nigeria you can apply for a loan. There is no doubt that many small businesses are struggling with funding for them to expand.

Apply for Loan in any Nigerian Bank

Apply for Loan in Any Nigerian Bank

One of the major reasons that often kill great business ideas of most entrepreneurs in Nigeria is their inability to meet the requirements for obtaining loans from banks.

However, bank loans as small as N50,000 and as big as N100,000,000 depending on your type of business.

Also, they offer the least interest funding for SMEs and charge interest rates of 5-25% and more, for 1-5 years (short to long-term loans).

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Below are some banks you can apply for loans in Nigeria:

1. First Bank of Nigeria

First Bank of Nigeria has made plans to provide non-collateral loans for Small and Medium Enterprises as part of the bank’s initiative to power growth in the SME sub-sector.

The loans are offered to SMEs in different sectors of the economy; hence, we can say there are no favorites.

The non-collateral loans offered by First Bank do not require collateral. The only thing you need to do is to go through a psychometric test, pass the test, and provide the bank with your business plan and financial projections.

The great thing about First Bank’s unsecured loans is that it is easily accessible to entrepreneurs irrespective of the type or size of your business.

How to Apply

Make the following documents available:

• Completed application form

• Company profile

• Business plan

• Cash flow budget

• Bank statements (12 months)

• Audited financial accounts

• Certificate of Incorporation

• Valid means of identification (driving license, passport, voters card)

• Proof of address

• Details of collateral offered (if any)

2. Diamond Bank Plc

Diamond Bank Plc offers entrepreneurs an opportunity to obtain loans without securing the loan against collateral. The non-collateral loans are designed to stimulate growth for Micro Small and Medium Enterprises (MSME).

Diamond Bank has about 5 SME-friendly accounts but if you want a loan without collaterals, you’ll most likely be looking at the bank’s SME loans.

Diamond Bank’s SME loans can be accessed as; Revolving Credit, Installment Loan, Local Purchase Order (LPO) Finance, and Contract Finance.

However, you’ll need to open a corporate bank account with Diamond Bank before you can apply for its SME loans.

How to Apply

a). To begin the processing of the loan, you will need to write a letter of application introducing your business and stating what the loan is meant for.

b). Also, one must attach the resolution of your company’s board of directors authorizing the loan application if your company is a limited liability company.

c). But before you can apply successfully, the bank says your business should have been in at least three months banking relationship with Diamond Bank.

For more details on this loan, you need to visit the bank.

3. Standard IBTC Bank

Stanbic IBTC Bank offers Nigerian entrepreneurs a great opportunity to obtain business loans without providing collateral.

The loans are designed to help SMEs buy assets, but the asset only becomes yours when you make the last payment on the loan.

How to Apply

To apply for a non-collateral loan with Stanbic IBTC, you should be prepared to provide the bank with the following information:

• The full names and capacities of those who will sign.

• The CV of each member of the management team.

• The reason why you need the finance.

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

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

• A 12-month cash flow forecast.

• The amount of your contribution and the source of the funds.

• Lastly, if you do not have a business account with Stanbic IBTC Bank, you must provide the business bank statements for the past six months.

For more information, please visit a Stanbic IBTC Bank branch closest to you or send an email to [email protected].

4. AB Microfinance Bank

The least amount you can borrow from AB Microfinance Bank is N15,000, the highest is N30,000,000. However, it doesn’t mean that you can receive such a loan at once when you come to the Bank.

The amount they give to clients depends greatly on clients’ ability to pay back the loan in the estimated time and in full.

These loans are not given for just any purposes. They are given to businesses that have been operating for some time. Of course, if you get such a loan, you will need to prove that you will spend it on the purpose or purposes it is meant for.

How to Apply

a). On the official website of AB Microfinance Bank, you will see the online application options, just click and apply this way.

The system will ask you for some information on your business and once you submit them, the next stage will begin.

b). The second stage is the approval of your data. Your approval process begins as soon as you submit the required information and documents.

c). Lastly, you will receive your loan within 48 hours after your application has been verified and approved.

CSN Team.

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