10 Best Online Platforms for Small Business Loans in Nigeria

Thinking about how to get a quick loan to start up a business in Nigeria? This article will provide you with the 10 best online lending platforms for quick and efficient loan services that can meet your needs.

The online loans provide a digital form of credit which lasts for a specified period of time on fixed-interest terms. The loan can be repaid on a regular installment basis or in full on the redemption date.

Loans play a vital role in stimulating the Nigerian economy because of the comparatively under-developed capital markets. Loans from traditional lenders are strained for low financial gain and freelance customers because of high-interest rates, strict documentation requirements, short loan maturities, and the inability to supply collateral.

The following are the 10 best online lending platforms in Nigeria:

Renmoney

Renmoney is a leading fintech company, which provides loans to businesses as high as N4 million at an interest rate of 4.9 percent. Loan types vary as well as repayment plans for the different categories offered. Applicants can access the service online via the website or by calling the number 0700 5000 500  to speak with a customer service agent to process a loan request. Applicants are required to provide six months bank statement, utility bill and a recent passport photograph.  Loan applications take 24 hours to get approved.

Once approved the money will be paid into the account of the beneficiary as provided.  Applicants are expected to payback loans within the stipulated time to enable them enjoy favorable rating and access a higher sum when applying next time.

  • 2. Quickteller Loan 

This is an online platform that provides easy financial support to customers from as low as N5,000 at a fairly reasonable interest rate, within sixty seconds. It is accessible via a web browser or on a feature phone, using the USSD code *322*6#.

The loan applicant is required to have an account with a Nigerian bank where the money will be paid into. Successful applicants are expected to repay the loan within the stipulated time, usually  in order to get a favourable rating for future loan request which will qualify the applicant for higher amount.

  • 3. Pennylender

Pennylender is an online moneylender that provides single payment loans, installment loans, and payroll loans for borrowers through their employer. The amount borrowed is then deducted from your monthly salary. The minimum amount for loan is N10,000 and the upper limit for a new customer is N500,000.

The size of loan and interest rate charged is determined by data provided by your employer such as salary, length of service and position. The loan can be up to 50% of your Monthly Salary and the loan tenure is from 3 months to 6 months.

Once you decide on the amount you want and you have set up your repayment schedule, money is sent to your salary bank account instantly.

  • 4. Credit Direct

Credit Direct is an online moneylender that provides Payroll based consumer loans to eligible individuals through their employer. The amount borrowed is then deducted from your monthly salary. The minimum amount for loan amount is N100,000 and the upper limit for a new customer is N2,500,000.

The size of loan and interest rate charged is determined by data provided by your employer such as salary, length of service and position. The loan can be up to 50% of your Monthly Salary and the loan tenure is from 3 months to 6 months.

Once you decide on the amount you want and you have set up your repayment schedule, money is sent to your salary bank account instantly.

  • 5. C24

C24 is a moneylender that provides retail loans for consumers in need of quick financial solutions. The minimum loan amount is N40,000 and the upper limit for a new customer is N750,000, while for existing customers is up to N1,000,000. Both depend on borrower’s capacity to repay assessed based on verifiable income level and other selection criteria.

  • 6. Microcred Microfinance Bank

Microcred Microfinance Bank is a CBN licensed institution offering loans for multiple purposes in Nigeria. The services offered include:

– Microloans: This is for entrepreneurs, traders and students to access up to N1m for existing businesses. The interest rate charged by Microcred on loans is a minimum of 7% with the total dependent on the tenure of the loan.

Microlending is the provision of financial services for people who do not have access to traditional financial services such as banks. These are borrowers are possibly dealing in small amounts of money daily, living in hard-to-access areas, without credit histories or who do not meet “traditional requirements” within the banking sector.

– SME loans: They provide a loan of up to 20m to help consolidate or invest in your business, which is repayable in up to 24 months. The loan is for use as working capital or for the purchase of fixed assets.

  • 7. Hasal Microfinance Bank

Hasal Microfinance Bank is an institution licensed by CBN that offers loans for multiple purposes in Abuja, Nigeria. The services offered include:

– Microloans: This is for entrepreneurs, traders and students to access up to N1m for existing businesses. The interest rate charged by Hasal is a minimum of 7% with the total dependent on the tenor of the loan. The loan tenure is up to 12 months.

– Group loans: A group loan is a form of rotating credit. A rotating credit scheme is where a group of individuals fill the role of an informal financial institution through repeated contributions and withdrawals to and from a common fund.

– SME loan: Hasal offers loan products tailored to meet the business needs of Small & Medium Enterprises (SME). SME finance is a financing solution accessible for specific business medium-term projects.

  • 8 Page Financials

Page Financials is an innovative retail financial institution offering various quick personal and salary advance loan to meet the financial request of customers.

On Page Financial, it takes six steps to request for a loan and the first one is inputting your BVN details.

For its loan, Page Financials offers a daily rate of 0.5% which accrues on its Debit card issuance also known as Pledge Finance.

Pledge Finance debit card is a preloaded with up to N500,000 depending on your net monthly income. The company also charge a one-off fee of N1,500 for the card valid for a period of 3 years.

The interest rate is accrue daily at 0.5% which is about 15% monthly on the loan card.

  • 9. Cedar Microfinance Bank

Cedar Microfinance Bank is an institution licensed by CBN that offers loans for multiple purposes in Nigeria. The services offered include:

– Microloans: This is for entrepreneurs, traders and students to access for existing businesses. Microlending is the provision of financial services for people who do not have access to traditional financial services such as banks.

Loan sizes offered by Cedar ranges from ₦200,000 to ₦500,000 and have a repayment period of up to 6 months.

– Group loan: Cedar Microfinance Bank group based loans are loan facilities designed for micro-enterprise operators, who do not have conventional collateral. These loans are up to ₦200,000 and have a short tenure.

To supplement collateral requirements, the loans are secured partly by cash and partly by group guarantees. To access these types of loans one has to be a member of registered and unregistered groups of 5-30 members.

– Asset Financing: This is a short to medium term loan granted to customers for the purchase of movable capital assets, mainly Motor Vehicles, agricultural equipment, construction equipment, industrial plant & machinery, Office and I.T equipment.

10. Paylater

Paylater is an easy online lending platform that provides short-term loans to individuals and small businesses in Nigeria to help cover unexpected expenses or urgent cash needs.

With Paylater, you can access up to 500,000 Naira loan with no collateral. Once your application is approved, funds are typically received within 1 to 3 business days. Making on-time repayments can grant you access to higher credit limits for your next loan.

In conclusion, although these platforms claim to offer quick loans without collateral, it is advisable to read the Terms & Conditions carefully with understanding before going through with the application.

Another factor to consider is the interest rate and payback period. As a business, you will not want to go in for loans with a very short payback period except you very sure you will earn back the money in no-time.

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