A collateral-free loan can be obtained by a business owner without having to pledge any asset as collateral against the loan amount. In essence, you will be given the loan without the creditor asking you to provide a guarantee in the form of assets (houses/companies), stocks, or other valuables.
Small business owners in Nigeria who have been wondering where to get loans without collateral should not have to worry any further as this article will list five platforms that offer such services.
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Some people need loans to start a business while other entrepreneurs seek expansion of an already existing establishment, but being that they want to invest in a small business, they often look for places to get collateral-free loans.
Listed below are five loan credit platforms:
- EZ Cash
- Quick Credit
- Fast Credit
- Carbon
- Kiakia
1. EZ Cash
Stanbic IBTC Bank’s EZ Cash for Small and Medium Scale Enterprises is an instant loan that you can apply for if you have an account with the bank and meet certain eligibility criteria. Also, you are not required to provide collateral. An applicant or customer is given the option of repaying between one to twelve months.
2. Quick Credit
QuickCredit by GTBank comes in handy for those whose businesses fall under such sectors as Health, Education and Trade. You must have a GTBank account. It is a time loan product aimed at supporting the working capital needs of SMEs.
3. Fast Credit
A business owner will not need collateral to obtain loan from this platform, but the loans are backed by guarantors. FastCredit offers services to micro, small, and medium enterprises to support business growth. The loan validity is for a maximum of six months for applicants that meet the criteria.
4. Carbon
Carbon gives loans to SMEs with the goal of helping you “grow your small business with affordable, collateral-free loans.” SMEs can access up to N1million (One million naira) without collateral, guarantors, or paperwork.
5. Kiakia
Kiakia was set up to be “the financial marketplace to access and lend out personal and business capital.” The repayment tenure for Kiakia loans are usually between 7 and 30 days.
It is important to note that if you are looking for a huge amount to invest in your business, collateral-free loans may not be the solution. When obtaining collateral-free loans which are also called unsecured loans, the loan amount is less but the interest rate would be high.
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