Securing a bank loan without collateral in Nigeria is a significant opportunity for small businesses and individuals looking to invest in their ventures. While it might sound improbable, several reputable banks in the country offer this service. In this comprehensive guide, we will explore the top 12 banks that provide loans without the need for collateral, ensuring that you have access to the necessary financial resources to achieve your goals.

1. First City Monument Bank (FCMB)

First City Monument Bank (FCMB) holds a prominent position on our list of the best banks offering collateral-free loans in Nigeria. FCMB is one of Nigeria’s leading financial institutions, known for its commitment to customer satisfaction. FCMB offers four loan services without the requirement of collateral:

  • Auto Loan: This loan is designed for purchasing vehicles.
  • Salary Top-Up Loan: It helps you supplement your salary.
  • Fastcash Loan: Provides quick access to cash when you need it.
  • Premium Salary Loan: Designed for salaried individuals with premium benefits.

Without any collateral, you can easily access instant loans through FCMB’s Fastcash loan service by dialing *329*11#. This service allows you to borrow up to 200,000 Naira, with interest rates ranging up to 15% for non-salaried individuals and approximately 8% for salaried borrowers.

2. Access Bank

Access Bank is a rapidly growing financial institution in Nigeria, known for its exceptional services. The bank offers the QuickBucks loan service, providing instant collateral-free loans that can be applied for without visiting a physical branch. You can access this loan by dialing *901*11# or *426# on your mobile phone.

Additionally, Access Bank allows you to apply for the QuickBucks loan conveniently through their QuickBucks App, Internet Banking, or their mobile banking app. The loan offers flexible terms and conditions, with loan tenure extending up to 36 months.

3. WEMA Bank

Wema Bank is well-known for its wide range of online banking services and also offers collateral-free loans in Nigeria. Regardless of whether you have a Current or Savings account with Wema Bank, you are eligible to apply for their Personal Loan service, which provides loans of up to 2 million Naira without requiring any documentation. You can expect the loan to be disbursed into your account within 48 hours of application. Wema Bank offers flexible terms and a competitive interest rate, making it accessible to all account holders.

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4. Fidelity Bank

Fidelity Bank is another fast-growing bank in Nigeria that offers payday loans without collateral. To apply for this loan, you can simply use the USSD code *770*08# without the need for a guarantor. However, there are certain eligibility criteria, including being a staff member of public or private organizations with salary accounts domiciled with Fidelity Bank for at least three months. Non-Fidelity customers with salaries processed by payroll companies like REMITA, Tenece, and Veripay can also access the loan. Fidelity Bank typically approves loans in less than 48 minutes, and the interest rates are competitive.

5. First Bank

First Bank, with over 10 million active accounts, is one of Nigeria’s most popular commercial banks. They offer the FirstCredit service, providing quick and hassle-free loans to salaried employees and individuals. To access a loan of up to 300,000 Naira with a 30-day tenure, you can dial *894# on your mobile phone. The interest rate for FirstCredit is a flat 10% on the principal amount, ensuring affordability.

6. Zenith Bank

Zenith Bank offers an exclusive bank loan without collateral in Nigeria with a loan period of up to 12 months. This loan is available to customers with a current account. Zenith Bank’s no collateral loan is structured as an overdraft, allowing borrowers to access a certain amount over the credit balance in their current account. The loan comes with a fair interest rate and flexible terms and conditions.

7. Stanbic IBTC

Stanbic IBTC is among the banks that provide loans in Nigeria without collateral. They offer personal loans tailored to meet the financial needs of parents, guardians, and businesses looking to pay school fees or cover working capital requirements. Stanbic also provides collateral-free SME loans for both new and existing customers. These loans are designed to meet working capital needs and business goals. You can apply for Stanbic IBTC personal loans through their mobile banking app or USSD, allowing you to choose a repayment term that suits your needs.

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8. United Bank for Africa (UBA)

UBA offers personal overdraft loans without collateral in Nigeria, making it a top choice for salary earners. With a convenient repayment period of 60 months and an attractive floating interest rate, borrowers can use the loan for various purposes. To apply, you need a functional savings or current salary account, a valid means of identification, and proof of residence. Unlike other no-collateral bank loans that can be applied for through your phone, UBA requires a visit to a UBA branch for the application process.

9. GT Bank

GT Bank, another popular bank in Nigeria, offers collateral-free loans through their Quick Credit product. This product is designed to provide hassle-free personal loans without the need to visit a physical branch. To apply for the GT Bank Quick Credit loan, dial *737*51*51#. You can also access the loan through GTBank’s online and mobile banking platforms, including the GTB banking app. Like the UBA personal loan, GTB’s loan is available exclusively to salary earners, offering loans of up to 5 million Naira with a monthly interest rate of approximately 1.66% for a maximum tenure of 12 months.

10. Providus Bank

While not as widely recognized as other banks on this list, Providus Bank offers quick bank loans in Nigeria without requiring extensive documentation. Providus Bank’s lending service allows you to access 50% of your net monthly salary for a maximum period of three months. Like the others mentioned above, this loan is exclusively available to salary earners who have their salaries domiciled with Providus Bank. Providus Bank’s lending service offers flexible terms and a competitive interest rate.

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11. Sterling Bank

Sterling Bank offers a popular loan product called Specta, designed for salary earners, entrepreneurs, or youth corps members looking for hassle-free loans. Specta eliminates the need for paperwork, collateral, guarantors, or in-person visits. The application process is straightforward: visit the Specta website, sign up, and provide your personal details. After assessing your credit score, your loan will be disbursed into your account within minutes. Specta loans come with a competitive interest rate and flexible terms, making repayment easy once the tenure is due.

12. Kuda Bank

Kuda Bank, while lacking physical branches, provides one of the best instant loans without collateral in Nigeria. Kuda is an online banking platform that offers a wide range of banking services, including money transfers, savings, bill payments, airtime purchases, investments, and loans. You can apply for an instant loan of up to 50,000 Naira through the Kuda app, with an interest rate of about 0.3% daily for a maximum period of 90 days. No collateral, documentation, or guarantor is needed for loan approval.

In conclusion, obtaining a bank loan without collateral in Nigeria is a valuable opportunity for businesses and individuals alike. While it may require effort to demonstrate your creditworthiness, these top banks provide accessible loan options without the need for collateral. It’s essential to explore these opportunities, consider your financial goals, and choose the bank and loan product that best suits your needs. Additionally, alternative lending options, such as microfinance institutions and peer-to-peer lending platforms, can complement your financial strategy. By continuously working on improving your creditworthiness, you can increase your chances of securing a loan without collateral and achieve your financial objectives.