Looking out for best Loan for sme in Nigeria, SMEs have a hard time getting capital, especially in Nigeria, which is known as the “poverty capital of the world.” But the bank may still be the best place to get quick and easy loans for the part of the economy that is very important to growth.
The National Bureau of Statistics says that there are 37 million Micro, Small, and Medium Enterprises. More statistics show that 59.7 million people were working in the MSME sector in 2013, which was 84.02% of the total workforce. The MSME sector also contributed 48.47% to the nominal value of the nation’s gross domestic product and 7.27% to exports.
Even though SMEs are a big part of the economy, they have trouble running their businesses in Nigeria because of things like inconsistent government policies, poor infrastructure and support, lack of access to markets, multiple taxes, old technology, and, most importantly, lack of access to money.
A number of Nigerian banks offer loans of up to N500 million to help small businesses get the money they need to grow. These loans have low interest rates and can be used for a wide range of businesses. Some of them don’t even require collateral.
1. Standard Chartered – Smart Business Loan offers up to N20 million
Small and medium-sized businesses (SMEs) can use the Standard Chartered Smart Business Loan to borrow up to N20 million to grow their businesses without putting up any collateral. A statement on the bank’s website says that the loan can be paid back in a way that works for the business and can be flexible for up to 2 years.
The repayment process for a Standard Chartered loan, which can be applied for through the bank’s online forms, is automated, and the borrower can also get more money during the loan’s term. This means that if regular payments are made, the business owner can add more after 12 months.
2. Union Bank – Union Biz Account offers 50 million
Union Bank provides banking services for small and medium-sized businesses (SME) in different categories with different loan buckets that have different requirements for each loan facility.
The free cash flow lending program lets businesses borrow up to N10 million for up to 12 months to pay for short-term working capital needs. The school finance program is aimed at school owners and gives them up to N5 million without requiring collateral to pay for things like school uniforms, stationery, and other operating costs for private nurseries, primary, and secondary schools.
There are also local purchase orders, distributor financing, financing of assets, term loans, overdrafts, and other ways to get a loan. Notably, Union bank’s local purchase order and invoice discounting gives the highest amount, N50 million, for a maximum of 90 days.
3. Access Bank – Business loan offers up to N3 million
Businesses can grow with the help of access bank business loans, which come in different types, like micro loans, loans for small businesses, ALDA loans, and overdrafts.
The goal of a microloan is to help small businesses grow by giving them N100,000 for up to 60 months at a rate of 12%. Loans for small and medium-sized businesses make it possible to carry out development plans and solve financial problems. It gives you up to N3 million over a period of 60 months.
In the same way, ALDA loans are seen as special privileges for the growth of agriculture, with up to N200,000 for 36 months starting at 7%, and Overdraft offers up to N200,000 for 12 months with a monthly interest rate of up to 1-1.5 % and no deposit required.
4. First Bank – SME Product Financing offers N20 million – N500 million
The SME product financing is meant to help small and medium-sized businesses, which are very important to the economy, grow as a whole. According to the bank’s website, it offers a number of options for featured SME products at competitive rates and with flexible collateral and products.
The product depends on the type of business, and the amount that can be used to improve businesses is based on the type of business. For example, the cement distributor finance offers up to N120 million for 12 months to help distributors get the working capital they need to grow their businesses. The commercial mortgage offers a maximum loan of N100 million, but it needs a property as collateral. This product is meant to meet the funding needs of established small and medium-sized businesses that are doing well when it comes to buying or building business premises.
In a similar way, offices that want to buy more assets could get an Office Equipment Loan, which lets them borrow up to N20 million and more. This loan is for small and medium-sized businesses (SMEs) that need vehicles for the day-to-day running of their businesses, and the maximum loan is N500 million for 12 months for distributors of fast-moving consumer goods (FMCG) companies on the bank’s approved list of principal for bus.
5. GTBank – SME Banking offers N50 million
GTBank gives small businesses loans to help them grow and connects them with the resources they need. The bank has loans for business accounts and invoice discounting for small and medium-sized businesses.
The business loan facility lets business owners get money for transactions and cash management services. It includes the GT Business Account, which is for small and medium-sized businesses with a monthly turnover of N50 million or less. The domiciliary account has a minimum balance of N20,000 and lets customers keep accounts in foreign currencies, GT Max accounts, which pay the most interest on daily account balances and charge the least for transactions, call accounts, and fixed and tenured deposits.
The SME invoice discounting finance (SME IDF) is a short-term loan that helps businesses with their cash flow needs quickly. Businesses can use invoices (also called “receivables”) to get money before their customers pay for goods or services. This facility lets you borrow up to 50,000,000 (up to 70% of the value of the invoice) at a competitive interest rate for a period of 60 days.
Needed for a loan: a properly filled out SME Invoice Discounting application form.
Invoice from a reputable blue-chip company that has been stamped “b” (name included in the approved list).
Copy of the business’s Certificate of Incorporation and Operating License for Service Providers (Contractors and Professional Firms, only the first time).
Contractors and professional firms (first time only) must show proof that they have successfully completed contracts in the past.
Verified certificate of project delivery or completion.
One year’s statement from your GTBank or other bank account.
Valid contract copy with Principal.
Cross-guarantee from another professional firm or a personal guarantee from the Sponsor.
The Letter of irrevocable domiciliation of invoice proceeds by the customer and is acknowledged by the principal.
6. UBA – SME loans and advances offers up to N50 million
UBA has a variety of ways to help businesses get the money they need to grow. The bank gives up to N50 million for working capital loans, asset financing, and health loans that need a lot of money for business growth, as well as for medium- to long-term loans like school loans to meet the working capital, asset, and mortgage needs of registered privately owned schools.
Also, its Young Entrepreneur Finance Scheme (YEF) gives loans to young business owners in Africa who have good ideas for small and medium-sized businesses and need money to start or grow them.
7. Zenith Bank – MSME loan offers up to N500 million
The MSME program from Zenith Bank offers a set of customized value propositions that help small businesses grow in a sustainable way by letting them use the right accounts.
The MSME loan is meant to help small and medium-sized businesses reach certain financial goals. It gives these businesses anywhere from N500,000 to N2 million, while loans for education get more at N5 million and loans for women (Z-Woman) get up to N10 million.
The bank gives the most money to the Creative Industry Financing Initiative, which gives out loans of up to N500 million for projects in the creative industry, such as fashion, making and distributing movies, music, and other things.
8. Fidelity Bank – SME loans and advances offers up to N720 million
The bank loan products for MSMEs are designed to help ease the problem of poor access to finance that MSMEs face in Nigeria. They also provide funding and other support for MSMEs, which help the Nigerian economy grow and develop.
The loans for MSME are Fidelity EduLoan, which gives working capital and asset/expansion finance (between N30 million and N250 million) to standardized and structured private schools registered with relevant state Ministries of Education, Fidelity Private Medical Support Scheme, which helps eligible private hospitals get the drugs and equipment they need, and Fidelity Pharmacy Support Scheme.
Other MSME loans are Clustered based quick loan with single obligor limit of N5 million for MSMEs, Development finance loan product alternative funding window that gives loans from N5 million to N720 million to eligible MSMEs playing in any sector of the Nigerian economy, at less-than-commercial rates, while other quick loans are aimed at working capital finance facility usually given as a 30-day overdraft to trading MSMEs to help them meet their needs.
9. FCMB Business loan offers competitive prices
First City Monumental Bank offers a range of business loans of up to N5 million to help a business grow. At competitive prices, these SME development facilities offer a minimum of N500,000 and a maximum that can be negotiated.
These loans are for SME development finance facility, SME asset finance facility, SME working capital facility, SME invoice discounting finance facility, SME local purchase order, and Quick loan.
10. Ecobank lending solution up to N5 million
Ecobank’s commercial banking offers loans that help businesses meet a wide range of needs. Business Overdraft, Business Revolving Credit Plan, Debtor Finance, Distributor Finance Scheme, and Vehicle and Asset Finance are some of the flexible lending products it offers.
11. Polaris bank – SME loan offers up to N10 million
Polaris bank has facilities that are meant to help businesses grow. This is done by filling in any gaps in a client’s business. Here are some details: The company Polaris Education, Maximum loan amount is N10 million per borrower. Polaris market loan lets traders who deal in fast-moving consumer goods get up to N5 million in financing. Polaris health loan helps professionals in the health sector get short-term to medium-term financing.
Also, the Central Bank of Nigeria has a N100 billion credit support intervention fund for the health sector called the CBN Health Sectors Support Facility.
12. Stanbic IBTC – SME Loan up to N10 million
The SME Loan is a custom-made loan that businesses can use to meet their working capital needs and reach their business goals.
Agribusiness finance is a short-term to long-term business loan for growing crops, raising livestock, and buying farm equipment. Distributor finance offers flexible loans to help large manufacturers or distributors of wholesale goods keep their cash flow steady. Invoice discounting is designed to help businesses get money against invoices for completed contracts before they get paid by their creditors.