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Collateral-free loans have become popular in Nigeria over the last few years. Many individuals and small businesses have benefited from these loans, which require no collateral. In this article, we will examine 21 collateral-free loans available in Nigeria, their eligibility criteria, and the application process.
1. TraderMoni
TraderMoni is a collateral-free loan scheme initiated by the Federal Government of Nigeria through the Bank of Industry (BOI). The scheme targets petty traders and artisans with a loan amount of N10,000 to N100,000. The loan is repayable in six months, and beneficiaries can access higher loan amounts upon repayment.
2. MarketMoni
MarketMoni is another collateral-free loan scheme initiated by the Federal Government of Nigeria through the BOI. The scheme targets traders, artisans, and small business owners with a loan amount of N50,000 to N500,000. The loan is repayable in six months, and beneficiaries can access higher loan amounts upon repayment.
3. FarmerMoni
FarmerMoni is a collateral-free loan scheme initiated by the Federal Government of Nigeria through the BOI. The scheme targets smallholder farmers with a loan amount of N300,000 to N2 million. The loan is repayable in six months, and beneficiaries can access higher loan amounts upon repayment.
4. Youth Entrepreneurship Support (YES) Programme
The YES Programme is an initiative of the Bank of Industry aimed at providing collateral-free loans to Nigerian youths between the ages of 18 and 35. The loan amount ranges from N1 million to N10 million, and the loan is repayable over a period of three to five years with an interest rate of 9%.
5. GEEP Loan
The Government Enterprise and Empowerment Programme (GEEP) is an initiative of the Federal Government of Nigeria aimed at providing collateral-free loans to traders, artisans, and farmers. The loan amount ranges from N10,000 to N100,000, and the loan is repayable over a period of six months.
6. AGSMEIS Loan
The Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) is an initiative of the Central Bank of Nigeria aimed at providing collateral-free loans to entrepreneurs in the agricultural sector and other small and medium enterprises. The loan amount ranges from N1.5 million to N10 million, and the loan is repayable over a period of seven years with an interest rate of 9%.
7. NIRSAL Microfinance Bank Loan
The Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) provides collateral-free loans to smallholder farmers, agro-allied businesses, and micro, small, and medium enterprises. The loan amount ranges from N100,000 to N10 million, and the loan is repayable over a period of ten years with an interest rate of 9%.
8. CBN Anchor Borrowers Programme
The Central Bank of Nigeria Anchor Borrowers Programme provides collateral-free loans to smallholder farmers engaged in the production of key agricultural commodities such as rice, maize, wheat, cotton, and fish. The loan amount ranges from N250,000 to N10 million, and the loan is repayable over a period of seven years with an interest rate of 9%.
9. GroFin SME Loans
GroFin is a private development finance institution that provides collateral-free loans to small and growing businesses in Nigeria. The loan amount ranges from $100,000 to $1.5 million, and the loan is repayable over a period of four to six years with an interest rate of 12%.
10. SMEDAN Loan
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) provides collateral-free loans to micro, small, and medium enterprises in Nigeria. The loan amount ranges from N50,000 to N5 million, and the loan is repayable over a period of three to five years with an interest rate of 9%.
11. Bank of Agriculture (BOA) Loan
The Bank of Agriculture provides collateral-free loans to farmers and agro-allied businesses in Nigeria. The loan amount ranges from N250,000 to N50 million, and the loan is repayable over a period of five to ten years with an interest rate of 9%.
12. Development Bank of Nigeria (DBN) Loan
The Development Bank of Nigeria provides collateral-free loans to micro, small, and medium enterprises in Nigeria. The loan amount ranges from N500,000 to N10 million, and the loan is repayable over a period of ten years with an interest rate of 9%.
13. National Youth Investment Fund (NYIF) Loan
The National Youth Investment Fund is an initiative of the Federal Government of Nigeria aimed at providing collateral-free loans to Nigerian youths between the ages of 18 and 35. The loan amount ranges from N250,000 to N5 million, and the loan is repayable over a period of five years with an interest rate of 5%.
14. Lagos State Employment Trust Fund (LSETF) Loan
The Lagos State Employment Trust Fund provides collateral-free loans to micro, small, and medium enterprises in Lagos State. The loan amount ranges from N50,000 to N5 million, and the loan is repayable over a period of three to five years with an interest rate of 5%.
15. Oyo State Youth Entrepreneurship Scheme (OYES) Loan
The Oyo State Youth Entrepreneurship Scheme is an initiative of the Oyo State Government aimed at providing collateral-free loans to Nigerian youths between the ages of 18 and 45. The loan amount ranges from N100,000 to N5 million, and the loan is repayable over a period of three to five years with an interest rate of 10%.
16. Delta State Micro, Small, and Medium Enterprises Development Agency (DSMSMEDA) Loan
The Delta State Micro, Small, and Medium Enterprises Development Agency provides collateral-free loans to micro, small, and medium enterprises in Delta State. The loan amount ranges from N10,000 to N10 million, and the loan is repayable over a period of three to five years with an interest rate of 9%.
17. Bayelsa State Microfinance and Enterprise Development Agency (BYMEDA) Loan
The Bayelsa State Microfinance and Enterprise Development Agency provides collateral-free loans to micro, small, and medium enterprises in Bayelsa State. The loan amount ranges from N50,000 to N5 million, and the loan is repayable over a period of three to five years with an interest rate of 10%.
18. Katsina State Economic Empowerment Development Programme (KASEED) Loan
The Katsina State Economic Empowerment Development Programme
(KASEED) Loan is an initiative of the Katsina State Government aimed at providing collateral-free loans to micro, small, and medium enterprises in Katsina State. The loan amount ranges from N50,000 to N2 million, and the loan is repayable over a period of three to five years with an interest rate of 5%.
19. Kaduna State Women Empowerment Fund (KADWEF) Loan
The Kaduna State Women Empowerment Fund provides collateral-free loans to women-owned businesses in Kaduna State. The loan amount ranges from N50,000 to N500,000, and the loan is repayable over a period of six months to one year with an interest rate of 5%.
20. Ebonyi State Microfinance and Enterprise Development Agency (EBMAEDA) Loan
The Ebonyi State Microfinance and Enterprise Development Agency provides collateral-free loans to micro, small, and medium enterprises in Ebonyi State. The loan amount ranges from N50,000 to N5 million, and the loan is repayable over a period of three to five years with an interest rate of 9%.
21. Osun State Micro-credit Agency (OSMA) Loan
The Osun State Micro-credit Agency provides collateral-free loans to micro, small, and medium enterprises in Osun State. The loan amount ranges from N10,000 to N5 million, and the loan is repayable over a period of three to five years with an interest rate of 5%.
Eligibility Criteria and Application Process:
The eligibility criteria and application process for collateral-free loans in Nigeria vary depending on the loan scheme. However, some common requirements include a valid means of identification, proof of residence, a bank account, and a viable business plan.
To apply for most of these loans, you need to visit the loan provider’s website or their office to fill out an application form. Some loan providers also require that you have a guarantor or provide a form of collateral.
Conclusion:
Collateral-free loans have become a lifeline for many individuals and small businesses in Nigeria. The loan schemes listed in this article offer various loan amounts, repayment periods, and interest rates to cater to the needs of different entrepreneurs. If you are an entrepreneur in Nigeria, you can take advantage of these loan schemes to grow your business and achieve your financial goals. However, it is important to carefully review the eligibility criteria and terms and conditions of each loan before applying.
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