Banks That Gives Business Loan without Collateral


The most prominent challenge facing all aspiring entrepreneurs and even the established entrepreneurs is the challenge of raising funds thus the need for a Business Loan. Every business requires funding at the startup stage and often getting the required funds usually the hardest task (aside from generating the business ideas of cause). Most business ideas remain only a dream and never got to the startup stage due to a lack of funding.

There are various means of raising funds for business startups and these includes :

  • Personal savings
  • From grants (Government grants etc)
  • Angel investors
  • Partnership
  • Cooperate Associations
  • Crowdfunding
  • Bank loans


These methods are used to raise funds for business startup, we have written articles on all these types . in this article, however, we will discuss bank loans as ways of obtaining funding and we will introduce the Nigerian Banks that can give you a business loan without collateral.

Have you have been thinking of getting business loans from banks discouraged due to te collateral demands? If yes then this article is for you. there are banks in Nigeria that offer business loans without collateral. Without any further ado, lets jump right into it.

Banks all over the world commercial, industrial, microfinance or online banks b default offer loans to people and small and medium scale enterprise generally with an interest rate which can range from 5% to 25% for short duration time loan in addition to these strings, these banks despite their high-interest rates often still must valid collateral which in most cases equal or of greater value to the loan amount. Nigerian banks are not left out, with different loan plans offered across the different banks which allow people and business owners to apply and get funding with an amount as small as #50,000 and as big as #100 million nairas but with collateral of course.

However, the good news today is that some Banks in Nigeria are embracing the non-collateral loan programs and are willing to give funding for starters, entrepreneurs, and business owners with such amount of money as business loans without collaterals.

In support of the initiative to allow entrepreneurship and growth of Nigerian born small business and medium scale startups, below the band, are willing to give out small to long-duration business loans to Entrepreneurs, business owners, and small enterprise.

Read Also: 5 Proven Ways to Reduce Small Business Expenses

Who is eligible to use these business loans?

The best part of these non-collateral business loans is that all entrepreneurs can easily access these loans irrespective of the size of their business.

Following our research, below is the list of Nigerian banks that will give you a business loan without collateral. Feel free to visit any of these banks in any of their branch around you to find out more about their loan options and the one that meets your business funding needs.


The first bank is a bank all businesses should consider both for loans and saving and investment needs. In line with non-collateral business loans, the first bank has plans in place for providing business and entrepreneurs with the necessary funds they must.

These loans are accessible to entrepreneurs and business owners irrespective of business type, size, and place. To access these loans, walk into any first bank outlet/branch with your business idea and ironclad business plan, follow their outlined rules, and then go from there.

Feel free to share your experience in the comment box below.


If you live in Nigeria and you have been watching your television, am sure you must have seen the series of popular adverts by Heritage Bank about empowering business of all sorts.

Probably you were thinking its just another advert, well it’s not. Heritage bank provides collateral-free business loans for businesses both small and large-scale irrespective of type and place.

Heritage Bank now runs a program called youth innovative Entrepreneurship program and it’s backed by the Central Bank of Nigeria all in support of Entrepreneurship in Nigeria.


Are you looking for smart financing business options for your business that allows you to build a business from scratch to success then you should consider GTBank? This bank offers entrepreneur business loans without collateral.

With a flexible SME loan package, you can easily apply and get a loan without in form of local purchase order (LPO), revolving credit, or installment loan.


Wema Bank is another bank deeply committed to the initiative of empowering the economic growth of the Nigeria business sector. In addition to other programs by these plans which many businesses are leveraging on, Wema is actively involved in their customer business growth and has conducted a transaction with SME. They are also willing to give business loans up to the amount of #1 million without collateral.

Wema bank allows their business owners having coöperation account with them to apply for collateral-free loans after 6 months of steady translations.


Stanbic IBTC is one of the banks in Nigeria that pays higher interest rates on fixed deposits. Also, they offer Nigerian Entrepreneurs the opportunity to apply and get business loans without any form of collateral. These loans is designed by Stanbic IBTC to help small and medium scale business enterprise to comfortably carry out their business operations.


Funding is a crucial aspect of business startup, growth, and expansion. However, funding remains a hard nut to crack during startup thus the thought of other means of funding such as business loans from banks. Unfortunately, most banks that offer business loans do that only with collateral but through this article, you are now acquainted with the top 5 Nigerian Banks that offer business loans without any form of collateral which most entrepreneurs don’t usually have.

Feel free to approach any of these banks to find out the terms and conditions as we know are often dynamic over time.



Please enter your comment!
Please enter your name here