Top 7 SME Loans Without Collateral in Nigeria & How to Apply in 2024

SME Loans Without Collateral in Nigeria: Have you ever imagined a world where getting a loan for your Small and Medium Enterprises (SMEs) in Nigeria doesn’t mean risking your hard-earned assets?

In this detailed guide, we’re highlighting the top 7 SME loans without collateral in Nigeria.

These aren’t just stories, but practical financial options crafted to boost economic growth by supporting SMEs.

Check out Loan in Minutes in Nigeria Without BVN

Top 7 SME Loans Without Collateral in Nigeria

The following is the list of best SME loan companies without collateral in Nigeria;

  1. Zedvance
  3. Lidya
  4. Grofin
  5. Aella Credit
  6. KiaKia
  7. Brass


Zedvance is one of the top SME loans without collateral in Nigeria 2024.

This lending platform provides loans worth up to 5 million Naira for various business needs.

Simply by signing up, applying for a loan, and answering a few simple questions, you can have funds deposited into your account within minutes.

Zedvance offers loan terms of up to 18 months, with fair interest rates.

Even salaried individuals can benefit from loans through this platform, which can be used to support a side business venture.

SME Loans Without Collateral in Nigeria


SMEDAN is another best SME loan in Nigeria.

SMEDAN, a government-supported initiative, offers swift and hassle-free SME loans without requiring collateral in Nigeria, catering to entrepreneurs seeking business capital.

Beyond providing financial support, SMEDAN is dedicated to nurturing small and medium-sized enterprises.

With no collateral required, you can join the ranks of over 700 empowered SMEs through this initiative.


If you’re seeking a collateral-free business loan in Nigeria denominated in dollars, Lidya stands out as one of the select platforms offering this service.

With Lidya, you can access SME loans ranging from a minimum of $500 to a maximum of $15,000.

To secure loan approval from Lidya, you must conduct your business transactions through their wallet.

This enables them to continually assess your transactions and determine the loan amount, duration, and repayment flexibility you qualify for, facilitating instant loan offers.

Lidya’s loan terms are highly flexible, and accompanied by fair interest rates.


This list won’t be fully accurate if we don’t include Grofin as one of the top SME loan without collateral 2024.

If you’re managing a medium-sized business, Grofin offers loans ranging from $100,000 to $1.5 million without requiring any collateral once you meet their basic criteria.

Grofin facilitates online loan applications through its website, streamlining the process for entrepreneurs.

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Aella Credit

Aella Credit also emerges as one of the reliable SME loans without collateral.

This app provides Nigerians with instant loans in as little as five minutes for diverse purposes, without requiring collateral or documentation.

To access a loan from Aella Credit, simply download the app from the App Store or Play Store, create an account using your authentic information, and apply for a loan.

The platform offers a sizable loan amount with a comparatively extended tenure.

Aella Credit stands out as one of the most flexible apps for obtaining online business loans without collateral in Nigeria.


Here is another top-notch SME loan without collateral in Nigeria.

KiaKia operates as a peer-to-peer lending platform, linking borrowers directly with lenders. Small business owners can register on KiaKia, connect with investors, and accept loan offers.

Despite originating from individual platform users rather than traditional lending institutions, loan offers on KiaKia feature comparatively low-interest rates and are highly secure.

KiaKia utilizes credit scoring and risk assessment algorithms to provide both personal and SME loans without requiring collateral in Nigeria.


Brass is the last on our list of SME loans in Nigeria but that doesn’t mean it is low-rated.

Brass is a regulated micro-finance bank providing quick and straightforward loans to small business owners and low-income earners, enabling them to invest in their businesses or pursue side ventures.

Similar to other options on this list, Brass doesn’t mandate any collateral for loan approval.

Through the Brass mobile app, users can access a variety of banking services, including loan applications, conveniently from their smartphones.

About SME Loans in Nigeria

In Nigeria, SME loans without collateral, also known as unsecured business loans, are a lifeline for small business owners.

These loans offer the freedom to access funds without the pressure of having to put up assets as security.

They’re especially appealing for entrepreneurs who may not have valuable assets to pledge as collateral.

You’ll find these loans available through various financial institutions like banks and credit unions.

Business owners can use these funds for a range of purposes, from restocking inventory to expanding operations or even hiring new staff.

While they often come with strict terms, these loans represent a valuable opportunity for entrepreneurs to grow their businesses without risking their personal or business assets.

Now, let’s proceed to the prerequisite of obtaining the SME loan in Nigeria without the collateral below.

Requirements to Get a Collateral-Free Loan as a Small Business Owner in Nigeria

  1. Valid Identification: You’ll need some form of government-issued ID, like your National ID card, driver’s license, or international passport.
  2. Business Registration: Your business should be officially registered with the Corporate Affairs Commission (CAC).
  3. Bank Verification Number (BVN): This one’s important, it’s like your banking fingerprint and is necessary for anyone in the Nigerian banking system.
  4. Bank Statement: Lenders usually want to see your recent bank transactions, typically around 3 to 6 months’ worth, to understand your financial habits.
  5. Business Plan: While not always required, some lenders might ask for a detailed business plan to get a clearer picture of your goals.
  6. Proof of Business Address: You’ll need to show where your business operates, which can be as simple as a utility bill or any official document confirming your business location.
  7. Steady Income: Some lenders prefer to see evidence of consistent business income, which you can demonstrate through bank statements or financial records.
  8. Credit Score: Although not every lender checks this, having a good credit score can boost your chances of loan approval.

Having known the requirements for SME loans without collateral in Nigeria, let’s proceed to the application method to secure the loan.

How to Get SME Loans without Collateral in Nigeria 2024

Now that you know what you need, applying for a collateral-free SME loan is easier than you might think.

Here’s a simple guide to get you started:

  1. Research Lenders: Take some time to explore different options. Banks, fintech platforms, and microfinance institutions all offer collateral-free loans. Look for one that matches your needs in terms of loan amount, interest rate, and repayment flexibility.
  2. Prepare Necessary Documents: Gather all the documents mentioned in the requirements section. This usually includes things like your ID, business registration, bank statements, and so on.
  3. Fill Out Application: You can usually apply online or visit the lender’s office in person. Complete the application forms and submit your documents.
  4. Wait for Approval: Once you’ve submitted your application, the lender will review your information to determine your eligibility. This could take anywhere from a day to a week.
  5. Get the Funds: If your application is approved, congratulations! The loan amount will be transferred directly to your bank account or provided to you in cash.
  6. Prepare for Repayment: Stick to the repayment plan you’ve agreed upon with the lender. They’ll usually provide options like wallet fund transfers or bank transfers for making repayments.

FAQs on SME Loans Without Collateral in Nigeria

How to get a business loan without collateral in Nigeria?

To get a business loan in Nigeria without collateral simply apply for a Zedvance loan application on their official website.

What are SME loans without collateral?

SME loans without collateral are like a helping hand for small and medium-sized businesses in Nigeria.

They’re loans that let you get the funds you need for your business without having to put up any collateral.

How do I qualify for an SME loan without collateral?

To qualify, you will need to meet certain requirements set by the lender.

This includes things like having your business registered, showing a steady income, providing valid ID, and sometimes having a good credit score.

What documents do I need to apply for an SME loan without collateral?

The documents you need can vary depending on the lender, but you’ll usually need things like valid identification, documents showing your business is registered, bank statements, proof of where your business is located, and sometimes a business plan.

How long does it take to get approved for an SME loan without collateral?

Approval times can vary. It might take just a few days, or it could be up to a week, depending on the lender and their process.

How do I repay an SME loan without collateral?

Repayment methods can vary too. Some lenders will let you pay back the loan through bank transfers or electronic payments, while others might use different methods.

It’s important to understand how the lender expects you to repay the loan and stick to their repayment plan.

Are interest rates higher for SME loans without collateral?

Interest rates can differ from lender to lender and depend on your financial situation.

Don’t miss the 10 Best Loan Apps in Nigeria With Low Interest Rate

Wrapping Up SME Loans Without Collateral in Nigeria

And that is it, we are done with all the information you need to know about SME loans without collateral in Nigeria in 2024.

Do you have any questions you want to ask us?

Kindly drop them in the comment section.

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