• Business - Your Money
  • Updated: May 16, 2020

How To Obtain Loans Without Collateral In Nigeria


Are you a student, self-employed, small business owner or just another individual in need of emergency funds to pay your rent, school fees or to expand your business, but unable to obtain a loan due to collateral requirements of banks? Don't give up yet, there are other ways to secure loan of five to seven figures without collateral.

Getting a loan has become increasingly necessary, and luckily, obtaining a loan is no longer rocket science as banks made the world believe. Apart from not needing collateral and documents to obtain a loan in today's financial industry, the credit process is done within minutes.

Accessing loan is now as seamless as purchasing airtime without leaving the comfort of your home. And this has been made possible by technology. The advancement of technology has collapsed the wall built around obtaining loans that made it cumbersome or impossible for the middle-class and lower-class population to get access. 

Below are five ways you can obtain or access loans ranging from five figures to millions of naira to help you achieve that goal you've set for yourself or withstand the twist and turns of life.

Financial outlets offering loan without collateral

As stated earlier, technology has dug a hole in the financial industry, allowing easy access to credit. And those using technology to create an entry point are Fintech companies, through which many middle-class and lower-class populations have been able to secure loans without offering collateral in return.

To obtain loans from these Fintech platforms, three things are required, download their app, register, request for your loan and you get your money. Although, new customers are often offered less; the credit amount increases after your first loan.

(1). Zedvance: This is a quick credit platform that offers salary earners and business owners up to N5 million. All that is required by the loan seeker is registration of your details to enable Zedvance contact you when your loan repayment is due.

Zedvance offers one of the cheapest interest rates in the Fintech market. Regardless of the amount requested for, Zedvance places 5.4% interest on the loan. To access Zedvance loan opportunity, you need to download its app on Google playstore.

(2). Branch: This is an online lender that provides loans for education purposes, rent and business. Borrowers can obtain single payment loans, installment loans and payroll loans by registering. New customers can obtain up to N200,000 from Branch before the loan amount increases.

For Branch, the more loan you obtain, the more credit you unlock. Branch loan opportunity is accompanied by 13% to 29% interest rate, but the Fintech lender doesn't charge late fees or rollover fees, while the loan can be repaid within 4 to 48 weeks.

(3). Quick Credit: This is also an online lending platform that offers loans at the speed of light without collateral or physical contact. Quick Credit offers loans tailored to the needs of the borrower. You can obtain loans amount between N5000 to N500,000, with an interest rate of 12%.

Payment of this loan is expected within 180 days, and if you need more money than being offered, Quick Credit advises borrowers to contact the company. Just like other online lenders, Quick Credit is available 24/7 for individuals in need of quick loans. It doesn't charge service fees like some Fintech companies.

(4). Eyowo: Eyowo is a different kind of lender. Although the credit made available to borrowers depends on your credit history and transaction rate, the lending platform allows individuals to borrow at zero interest rate  This is unlike any lending platform.

But just like other lenders, potential borrowers are required to download Eyowo app before having access to their loan opportunity. Besides, that's the only way a borrower can know the amount he or she is entitled to.

(5). GTBank Quick Credit: Yes, GTBank has an online lending platform. Unlike other Fintech lenders, this quick credit allows you to access a loan with USSD code (*737*51*51#). It is one of the cheapest loans offered by any Nigerian lender, as It offers you access to as much as N5 million with a 1.33% interest rate, and allows you pay back in six to twelve months.

However, the N5 million is for salary earners, while non-salary earners can obtain as much as N500,000. Also, if you have existing loan you haven't completed at other banks, you can still access credit on this platform; this is another advantage the GTBank quick credit has above other lenders.

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Olalekan Fakoyejo
Olalekan Fakoyejo

Fakoyejo Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ)....

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