Banks In Nigeria That Offer Business Loans

No doubt, many good lucrative business ideas have died because banks are not willing to give loans to young entrepreneurs. Even when running a business, there are certain projects that you might need to access a loan to be able to finance the project. However, getting a loan from a bank, especially as a startup business can be very tough and rigorous. Because most banks rather give loans to established businesses than take risks with SMEs.

In Nigeria, many commercial banks claim to offer affordable and accessible loans to small-and-medium scale businesses but only a few are actually accessible. Most banks require young entrepreneurs to provide all sorts of documentation that they might not even have. Nevertheless, it is  understandable why banks are lenient in lending to small businesses because they have been burnt a lot by small business owners.

However, as a business owner who wants to obtain business loans from banks, it is necessary to have a good strategy that cuts across administration, efficient management, customer service, proper financial records, and a good marketing plan. If you want to know about banks in Nigeria that offer business loans then you are in the right post. Let’s get started…

Top Banks in Nigeria That Offer Business Loans

Most commercial banks in Nigeria offer business loans but only a few are accessible to small and medium-sized businesses. Below are some of the top  banks in Nigeria that offer business loans.

First Bank

First Bank SME Loans are designed to help small and medium businesses expand their daily activities. This type of loan can be used to purchase equipment and inventory and to augment working capital. First Bank is committed to providing huge opportunities to SMEs in order to help them grow through their loan schemes.

Moreover, the most interesting fact about First Bank loan is that it is easily accessible to young entrepreneurs irrespective of their business type or size. Basically, all you need to do to be able to obtain a loan is to take a test and provide a good business plan and financial projection.

Stanbic IBTC Bank

Stanbic IBTC Bank is a popular bank in Nigeria that offers business loans to entrepreneurs. The bank SME loans are designed to help businesses to meet working capital needs and to achieve business goals. However, when the loan is approved, you can use it to purchase business assets and other business facilities but these acquired assets can only become your own officially when you have completed your loan repayment.

Stanbic IBTC Bank Requirement

• • Applicant’s formal letter of request for loan
  • Applicant must have a good credit score

• • Applicant must provide a banking history of at least six months with Stanbic IBTC Banks or 12 months with other banks.
  • Applicant must provide Tax Identification Number
  • Applicant must provide the business registered documents.

Union Bank

Union Bank was established in 1917 and licensed by the Central Bank of Nigeria to serve individual, small, and medium-scale firms and large organizations and corporations. It is one of Nigeria’s oldest banks and also has its head office in Lagos.

Union Bank has built initiatives around promoting access to the Market for SMEs. The bank has made it easy to access different loan packages ranging from cash flow lending to Term Loans. You can get up to N10 million with an affordable interest rate for the maximum tenor of 12 months.

 

Union Bank Requirement

• • Applicant request letter for loan
  • Applicant must have a good credit score

• • Applicant must provide a cash flow statement
  • Applicant must provide Tax Identification Number
  • Applicant must provide a copy of the Corporate Affairs Commission (CAC) registration certificate.

Wema Bank

Wema Bank SME Loans are a short-term type of business loan designed for those who are planning to start their own SME to make a progressive impact on the industry and society. With a Wema SME loan, your business has an edge over your competitors and also saves you from loan sharks. Moreover, both new and existing customers can easily access the SME loan using the bank app with minimum documentation.

Wema Bank Requirement

• • Applicant must have an ALAT account

• • Applicant must provide a cash flow statement with ALAT or Wema
  • Applicant must provide Tax Identification Number
  • Applicant must provide a copy of the Corporate Affairs Commission (CAC) registration certificate.

Access Bank

Access Bank is a multinational commercial bank established in 1989 with its head office in Lagos. The bank is licensed by the Central Bank of Nigeria to provide financial services to Nigerians. Since, its merger with Diamond Bank in 2019, the bank has become the largest bank in Nigeria by assets and has one of Africa’s largest customer bases.

 

Access Bank offers SME loans to help businesses meet working capital needs and to achieve business goals. You can get a business loan of up to N10 million without any collateral if you are a business owner with an access bank business account. however, before you can be eligible to obtain a loan from the bank, you must have a business account with steady transactions for 6 months.

Guaranty Trust Bank (GTB)

Guaranty Trust Bank offers its customers a special loan package called QuickCredit for Small Business. The package is a time loan product aimed at financing the working capital that is funds needed for day to day needs of SMEs. You can get a business loan of up to N10 million with a duration of 6-12 months. In addition, the repayment plan is structured in two ways: Monthly interest payments and Quarterly principal repayments.

QuickCredit for Small Business Requirement

• • Applicant must have actively operated a Corporate or Business account with the bank for at least 6 months.

• • Applicant business must be 3 years and above and also be able to provide at least 1-year bank statement.
  • Applicant must not have any past due obligation with any bank.
  • Applicant must have zero record of returned cheque within the last 12 months.

• Qualified applicant can access 50% of their annual turnover calculated over the last 12 months.

 

FAQs

Which bank can I get a loan for business?

Top 10 Banks that offer business loan

• • Guarantee Trust Bank
  • First Bank

• • Access Bank
  • Union Bank
  • Fidelity Bank

• • Stanbic IBTC Bank
  • Wema Bank
  • Ecobank

• Unity Bank
• UBA

Can I borrow money from a bank for business?

Yes, you can get business loans from banks. However, the requirement and procedure for each bank varies but before you can access a business loan, you will need to provide a good business plan to the bank to lend you the money.

How can I borrow money fast in Nigeria?

The fastest method to borrow money in Nigeria is through instant loan apps like Palmcredit and many more. Instant loan app allows you to obtain a loan in less than 5 minutes without any documentation and collateral.

Conclusion: Banks In Nigeria That Offer Business Loans

The above-mentioned are some of the Nigerian banks that offer business loans to businesses. Even though their requirement or procedures may vary, you need to provide a good business plan to the bank before they would lend you the money. However, there are other ways to obtain loans aside from banks. There are so many instant loan apps willing to leave out loans without any documentation or collateral.

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