How To Secure A Business Loan In Nigeria – Easy Guide

Securing a business loan in Nigeria is usually envisioned as a means to an ugly end. Most people, out of fear, would rather remain small and stagnant than to seek a loan that will no doubt sprout the growth of the business to a tremendous height. Thanks to our dear beloved Nollywood, they made securing a business loan look like trading with the devil. They will depict a wealthy man and unexpectedly, the bank will make him poor overnight by ceasing his assets, companies, and houses because of being unable to settle a loan. The real world doesn’t work like that. Securing a business loan in Nigeria is something that I encourage.

If you’ve been a regular reader of this blog, I’m sure you would have read countless times about using OPM (Other People’s Money) to grow your business. My role model, Robert Kiyosaki, through his books have thought me a lot on how to go about this, and the easiest way is through the bank. Most people think that the main work of the bank is to save money. That’s far from the truth. Your money is a liability to the bank, what they would rather do is convert that liability into an asset by loaning it out to corporate individuals and firms. However, some requirements have to be met before you can successfully take a business loan here in Nigeria.


First of all, I would love to talk about how to secure a loan from BOI (Bank Of Industry) and BOA (Bank Of Agriculture). This should be the first alternative before any other cause they are specifically geared into helping small and medium enterprises (SME) grow here in Nigeria. Their interest rate is reasonable and encouraging.


Bank of Industry Limited (BOI) is Nigeria’s oldest, largest, and most successful development financial institution. This financial institution took off in 1964 with an authorized share capital of 2 Million (GBP). According to, its core mandate is to transform Nigeria’s industrial sector by providing financial and business support services for enterprises.

READ ALSO:  Make 2 Million Naira In A Year From Grasscutter Farming

The interest rate on term loans ranges from 5% to 10% per annum and that’s why most business persons prefer it to commercial banks. However, before you can successfully secure a business loan from BOI, lots of requirements have to be met like having a registered company and assets as collateral.

I would advise you to visit BOI’s website to know more about the requirements and how to apply for a loan.


Bank of Agriculture Limited is the nation’s most foremost agricultural and rural development financial institution. It’s supervised by the Ministry of Agriculture and has a key mandate in the provision of credit support to all activities in the agricultural and value chain. If you’re looking for a way to secure a business loan in Nigeria as a farmer, then this route should be exploited.

This financial institution gears mainly in helping farmers acquire loans and further help them to grow the economy. If you’re a farmer, then you’re qualified.

The interest rate is 5%. To know more about the requirements and how to apply for a loan, please visit their website or branch office closest to you.


Currently, there are about three banks here in Nigeria that don’t require you to have collateral before you can qualify for their loan program. Most business loans in Nigeria come with collateral, but you’ll be amazed that some Nigerian banks have chosen to stand out.

READ ALSO:  What Is Hindering Entrepreneurship In Nigeria?


The first bank of Nigeria has a non-collateral loan program that’s aimed at helping small and medium enterprises. All that is required to be eligible is taking and passing their psychometric test. Once that is successfully done, you’re now free to present your business plan and financial projection.


Just like First Bank, Diamond Bank has a non-collateral loan initiative that can be given to small or medium enterprises. If you want a loan in Diamond bank, then you have to take a look at the bank’s SME loans. Stanbic bank is up when it comes to issuing a business loan in Nigeria to deserving individuals. One major requirement before you apply for the SME loans is having a corporate bank account with the bank.


Stanbic IBTC Bank is also among the banks that have vowed to help small and medium enterprises raise beyond their current position through their non-collateral loan. It’s advised you visit any of their branches to know more on how to apply.


One of the ways to transit from a small business to a mega business is by acquiring a loan from any of the above means. Head over to their respective websites or better yet, visit their branch to know the requirements and how to apply. This article was meant to enlighten you on opportunities as it regards business loans in Nigeria. It is now left for you to take hold of this information and make a difference in your business.

If you have got a question, use the comment box and I will do my best to answer you in a satisfactory way. Don’t forget to share this post.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
error: Content is protected !!