15 Loans for Small Scale Businesses in Nigeria

Nigerian Woman wearing orange dress
Nigerian women entrepreneur

 15 Loans for Small Scale Businesses in Nigeria

Wondering how you can secure a loan for your small scale business in Nigeria?

You are in the right company.

I’ll take you through how you can get loans for your small scale business here in Nigeria and expand your ministry…..your business, I mean.

I am of the school of thought that funding is not the most important factor that determines success in any business, big or small. And loans are the last options you want to go for.

Fund, loaned or given gratis, could get in the way of potentially successful small businesses and startups and such from achieving their goals and of course, scaling up.

On the other hand, many viable business ideas have died in the belly of their owners or at best after a few years in operation due to lack of needed fund to inject into the business and grow it.

See Also: Trusted Venture Capital Firms for Businesses in Nigeria

So, while capital solely does not determine the success of your business (market viability, product viability, business model, etc. do), the right amount of funding just at the right time will do a lot of good for any scalable business to achieve their profit goals.

To put this in context, take a business that deals in wigs for example. Human hair wigs for the upwardly mobile.

If you are into that sort of products, you do not necessarily need any funding to start. Yes, I say so!

All you need to do is to put your internet data into good use. Instead of following celebrities on IG up and down, Open an Instagram business page and start publishing intentionally promotional posts of your business – in this case your wigs.

See also: 13 Tips: How to Become a Social Media Influencer in Nigeria

Fine, you do not have the money to buy the wigs already right? Okay, get pictures online (at least you know how to Google); get the pictures from distributors who you intend buying from… just make sure you get good pictures to represent your kind of brand.

Accompany your posts with great well written emotive captions and follow these other tested strategies I shared on how to promote your business on Instagram for free. 

Once orders start knocking at your DMs, then all you’ll need is get the specifications of your potential customers and send to your wig distributor who then sends good to you and then you to your customer.

Make sure the buyer sends money before you get the goods across to them, this is very important. Also, ensure you work with a trusted wig merchant, please there are way too many 419ners in this country.

With an increased order, you could then think of growing your business. You may want to have a warehouse or get one or two staff on-board, etc. In any case, you now need some funding for your small business.

See also: Difference between Small business and startups

Now that I have convinced you – I hope so – that when it comes to business, especially, small scale businesses, money is not everything, in fact, money is the last thing you need.

Now that you have to inject funds into your business or else you will kiss it goodbye, you may need to get some loans after exploring these surefire ways to raise funds for business in Nigeria. Remember, loans are always the last options for business owners.

Here are top 15 Loans sources for Small Scale Businesses in Nigeria

If you are thinking of where to borrow money to start a business, then this list is a great help.

  1. Cedar Microfinance Bank

What they do: Cedar Microfinance Bank is a Financial Institution which recognizes the different needs of their unique and different customers and provides suitable financial services.

Who they finance: Small business owners, school fees loans, etc.

Loan size: Loan sizes range from ₦200,000.00 to ₦500,000.00

Repayment Period: Up to six months.

  1. Specta by Sterling Bank 

What they do: Specta is an online lending platform that gives you loans in 5 mins!

Who they finance: Loans to entrepreneurs in Nigeria, employed and youths

Loan size: Up to 5 million

  1. Pennylender: What they do: Pennylender is a lending platform that provides access to credit at lower borrowing cost for millions of Nigerians that other lenders are unable to serve.

Who they finance: Entrepreneurs who need financial assistance for their small scale businesses.

Loan size: N10,000 – N500,000

  1. lydia.co 

What they do: They are online platform that provides loans for small businesses to give them the opportunity to expand their businesses and generate more income. They are in USA, Nigeria, Poland and the Czech Republic. Loans are accessed in three steps.

Who they finance: Loans to entrepreneurs and small scale businesses.

Loan size:

  1. kiakia.co 

What they do: They help Nigerians have access to personal and small business loans, and also enable savers lend out funds at negotiated interests through intuitive conversations.

Who they finance: Kiakia loans provides financial services for entrepreneurs and small businesses.

Loan size: Up to N500,000

  1. Grofin

What they do: GroFin provides investment finance and business support to growing businesses in Africa and the Middle East.

Who they finance: GroFin provides Small and Medium Enterprise (SME) finance/business loans in South Africa, Zambia, Nigeria, Ghana, Ivory Coast, Senegal, Uganda, Tanzania, Kenya, Rwanda, Egypt, Iraq, Jordan and Oman

Loan size: US$100k and US$1.5M

  1. Onefi 

What they do: OneFi is on a mission to democratise access to finance by leveraging data and technology. Our lending process is fully online via the Carbon Mobile App.

Who they finance: Businessmen and women, employers, employees, etc.

Loan size: Up to 1,000,000

  1. ALAT by Wema:

What they do: They provide access to loans without paperwork, no visitation to any physical location and response time between acceptance of offer and loan disbursement is in minutes.

Who they Finance: Open to all validated customers.

Loan sizes: Up to N200,000

  1. C24

What they do: they provide Nigerians with online loan application can be completed within 5 minutes. Their loans are flexible and have great rates.

Who they finance: They provide personal loans, business loans and quick cash.

Loan size: As much as N5,000,000

  1. Quick-Check 

Who they are: They provide digital financial services to help you get closer to your personal and business goals.

Who they finance: Individual and businesses

Loan size:

  1. Aella-credit

Who they are:  They exist to simplify and open up financial access for all in emerging markets – by leveraging technology and widespread mobile adoption, they build products to make an impact at the frontier of Financial Inclusion. They operate in other African countries like Ghana.

Who they finance: All but they believe in, and support women and women-owned businesses, and they represent 45% of their active user base.

  1. Zedvance

What they do: They provide access to quick loans without collateral. Users can apply for up to 5million naira with loan tenors of up to 18months and have their money sent straight to their bank account in minutes.

Who they finance: Small business owners and others.

Loan size: Up to N5,000,000

  1. RenMoney 

What they do: they provide convenient loans to meet your financial needs of Nigerians.

Who they finance: Employees and small and medium-sized  business owners

Loan size: ₦4,000,000 today.

  1. Smedan 

Who they are: Some of their mandates are Stimulating, monitoring and coordinating the development of the MSMEs sub-sector; initiating and articulating policy ideas for small and medium enterprises growth and development.

Who they finance: Small and medium enterprises

  1. Fastcredit

What they do: They provide value-based lending to this bottom of the pyramid that may not have access to credit from the traditional banking system in line with the financial inclusion policy of the Central Bank of Nigeria.

They are in over 5 states in Nigeria.

Who they fund: Personal loans, SME loans, corporate partnership (group) loan.

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