18 Best Loans Without Collateral in Nigeria Year 2023

Paydayloanskentucky.org – There are several choices for getting loans without collateral in Nigeria. Each choice comes with its drawbacks and benefits.

Which one should you go with? And can you borrow the money without collateral to buy a home?

This time, we’ve gathered all the information on this subject for you. We also have several recommended apps and banks to obtain good unsecured loans.

loans without collateral in Nigeria 2

Why You Need Loans Without Collateral in Nigeria?

Collateral is basically an asset. It could be a house, a plot of land, a car, or even gold. Loans that use collateral are called secured loans. This type of loan is commonly offered by mortgage lenders.

For instance, you want to borrow money to buy a car. You then go to a mortgage company. They agree to accept your request, but under several conditions. One of them is that the new car will be used as collateral. In other words, if you are unable to repay the loan, the mortgage lender will basically seize that car.

This practice is actually quite fair. However, some of us simply lack any valuable assets to obtain a loan. As a result, some financial institutions offer products in which borrowers are not required to provide backups.

Which Bank Gives Loan Easily in Nigeria

To this day, loans without collateral are quite common in Nigeria. There are several banks where you can obtain a loan without providing any assets at all.

Some of the banks that provide loans without the need for backup are the government banks. The Central Bank of Nigeria is an example.

As a government body, the CBN surely has various loans to support its citizens. They launched Agri Credit. It’s basically a farmer assistance program with an annual interest rate of 8%. Unfortunately, the program for entrepreneurs involves secured loans, meaning you need to provide collateral first.

Other banks also offer unsecured loans. In fact, a lot of private banks offer far more unsecured loan products. However, it’s mostly limited to personal loans. If you want to borrow money from mortgage lenders to buy a home, the home will be treated as collateral.

Online Loans Without Collateral in Nigeria

In today’s era, it’s quite easy to borrow cash online without providing any backup. We can use apps or websites, depending on how the lenders provide their services.

1. Bank Loans

As stated, several banks provide a personal loan where you can borrow money for various purpose without collateral. Some of those banks are listed below.

  1. UBA: up to N30 million with interest rate of 4.20%-5.50% per annum
  2. Access Bank: up to N300,000 with interest rate of 4.65%-5.50% per annum
  3. Zenith Bank: up to N2,000,000 with interest rate of 9% per year
  4. GTBank: up to N50,000,000 with interest rate of 4.45%-4.95% per annum
  5. First Bank: up to N300,000 with interest rate of 10% flat on the principal amount
  6. Fidelity Bank: up to N10,000,000 with interest rate of 4% flat
  7. Polaris Bank: up to N10,000,000 with interest rate of 2.5% flat
  8. Chartered Bank: up to N20,000,000 with interest rate of 4.65% per annum

2. Payday Loans

Aside from the bank loans, you can also borrow loans without collateral in Nigeria from payday lenders.

  1. Kuda: up to N150,000 with interest rate of 15% per year
  2. ALAT: up to N2,000,000 with interest rate of 8.75% per year
  3. Page Financials: N100,000-N5,000,000 with interest rate of 3.75% per month
  4. Migo: N50,000 to N1,000,000 with interest rate of 5% to 25% per year
  5. Quick Check: up to N200,000 with interest rate of 1% per day
  6. SC: up to N20,000,000 with interest rate starts from 1.083% per month
  7. Fair Money: from N1,000 to N150,000 with interest rate of 2.5% to 30% per year
  8. Branch: from N1000 to N200,000 with interest rate of 2% to 30% per year
  9. Carbon: from N5000 to N1,000,000 with interest rate of 1.75% – 30% per year
  10. Wema Bank: from N2,000,000 with interest rate of 13.13%

NoTypes of LoansLenders
1Bank LoanUBA
Access Bank
Zenith Bank
GTBank
First Bank
Fidelity Bank 4% flat
Polaris Bank
Chartered Bank
2Payday LoanKuda
ALAT
Page Financials
Migo
Quick Check
SC
Fair Money
Branch
Carbon
Wema Bank

Urgent Loans Without Collateral in Nigeria

Sometimes, you need not only a loan without collateral but also a fast loan. In that circumstance, it’s better to apply for a loan from a bank or a payday loan app that will let you borrow the money within a day.

Some payday loan apps can provide the cash within an hour. Banks, on the other hand, will take several hours, and it’s already considered fast. In fact, most banks will process the request for days.

However, borrowing money from banks is generally safer and cheaper. That’s why it’s better to consider the bank option first before you obtain any loans from payday loan lenders.

Mobile Loans vs Loans Sites in Nigeria

While the internet penetration in Nigeria is growing, it still needs a lot of improvement. In 2022, the Alliance for Affordable Internet found that only 12.1% of Nigerians enjoyed good internet connectivity.

For fintech companies, this situation definitely creates some limitations. That’s why, while in Europe or Asia, almost all lending companies provide their service through apps and websites, in Nigeria they also provide a mobile service.

Which one is better for taking loans without collateral in Nigeria? Which one is cheaper among them?

The answer is relative. In general, a good loan is not determined by this aspect. However, it’s indeed more convenient to use apps or visit websites to obtain loans, as we can read the information easily.

Basically, according to all the explanations above, it can be stated that there are numerous options to get loans without collateral in Nigeria. We can obtain an unsecured loan from a bank or a payday loan app.

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