Loans For Startup Business in Nigeria: How to Apply & More

Loan For Startup Business in Nigeria: Many people have the zeal to start a business in Nigeria, but getting the startup capital is always challenging.

Imagine having that striking business idea. A business that can fetch you a good amount of money, but damn! no capital to make it a reality.

I want to reassure you that it’s not yet over, so don’t lose hope. There are so many ways to catch a rat, and one of those ways in this situation is accessing a startup business loan!

The good news is that this article covers all the vital information you need to know about startup business loans in Nigeria, including where to get these loans, how to apply, and their eligibility criteria.

We kindly advise you to read to the end to avoid missing any important information.

Loan For Startup Business in Nigeria: Introduction

Starting a business is, no doubt, a bold and proactive step and one of the coolest ideas one can ever think of.

Whether you are a worker or looking forward to establishing a source of income, starting a business can be a perfect choice for you.

Nigeria as a country is blessed with a lot of business-minded individuals who want to strive and succeed in various fields of business. However, you need something to make something. Taking money to make money is what business is all about.

The smart business idea you are thinking about may not materialize if there is no money to finance it to become a reality.

Thank God for the development of business loans. You can now access a loan of your choice and start a business conveniently.

Business loans have assisted many individuals to overcome initial startup challenges and establish.

Additionally, they serve as a valuable tool to support entrepreneurs to aid their growth and expansion financially.

I started my poultry farm with a loan of 250k, and now I am counting 350k and more monthly from the farm.

Indeed, it was not an easy task at the start, but I can now testify how the decision added to my financial status.

With the experience I had, let me quickly share with you the common challenges of starting a business with a loan and how to potentially overcome them. I believe that this will help you overcome the obstacles and establish a solid and successful business.

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Common Challenges & How to Overcome Them

Below are the common obstacles of starting a business with a loan and how to overcome them:

1. Financial Pressure

The monetary stress associated with repaying your loan and sustaining your business may initially feel like a weight on your shoulders.

To overcome this, meticulously plan your budget, factoring in potential highs and lows. This will help you navigate through lean periods without feeling crushed.

2. Market Fluctuations

In the marketing system, changes in market demand and prices are inevitable. This can catch you off guard, and impact your earnings projections.

You can conquer this by staying up to date on market trends. Flexibility in adjusting your strategies based on marketplace conditions allows you to adapt to fluctuations more efficaciously.

3. Loan Interest Burden

Dealing with interest rates can eat into your profits if not managed wisely.

To conquer this, shopped around for lenders, negotiated terms, and explored government-backed programs with friendlier interest rates.

4. Unexpected Expenses

Equipment breakdowns and sudden farm emergencies can derail your financial plans.

In this situation, developing a devoted emergency fund can be a game-changer. It cushioned the impact of unexpected fees, allowing business to run smoothly.

5. Competition

In the business system, there are always competitors, and overcoming them calls for a strategic technique.

Focus on building a sturdy brand identity. Emphasize quality and consumer satisfaction. Word-of-mouth referrals performed a vital position in standing out.

6. Inadequate Planning

By failing to plan, you are preparing to fail.

Regularly revisiting and updating business plans can keep you heading in the right direction. Also, Seek advice from experienced mentors to get precious insights.

7. Emotional Stress

Emotional stress is something you will come upon in this situation. Yes! Balancing the needs of your business and loan repayments can take a toll on your well-being.

To triumph over this, it’s critical to prioritize self-care, take breaks, and find a support network. Also, don’t forget to celebrate victories, whether big or small. This can help keep your spirits high.

Remember, the journey might be difficult, but every challenge is an opportunity to learn and develop. Stay determined, and I’m confident you will build a thriving business!

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Top Lenders Offering Loans for Startup Businesses in Nigeria

Below are the top lenders offering startup loans in Nigeria:

1. Standard Chartered Smart Business Loan

Standard Chartered plc, headquartered in London, United Kingdom, is one of the world’s leading international banks.

This bank was established in 1969 and is currently having about 1,000 branches located in 59 markets around the world.

In Nigeria, the Bank began its full operations in 1999 and was opened to customers on 15 September 1999. Their headquarters is located at No.142 Ahmadu Bello Way, Victoria Island, Lagos 106104, Lagos.

This financial institution offers different types of loans, including business loans.

With the Standard Chartered Smart Business Loan, you can borrow up to N20 million. The loan tenure is 24 months (2 years). No collateral, and no guarantor.

One good thing about this loan offer is that the repayment plan can be structured to suit your business flexibly. They also offer a top-up if you need additional financing.

You can visit the loan page to apply or learn more about the loan offer.

2. Access Bank Instant Business Loan

Access Bank is one of the leading financial institutions in Nigeria. The bank is currently topping the chart when it comes to customer deposits.

This bank is known for providing amazing financial services. They also offer different types of loans, including business loans.

With the Access Bank Instant Business Loan, users can borrow up to N10 Million. The loan tenure is 180 days (6 months) and the interest rate is 5.5%.

You can visit this page to apply or learn more about the loan offer.

3. Advans Nigeria Business Loan

This is another loan offer for you if you are looking for a loan for a startup business in Nigeria!

With the Advans Nigeria Business Loan, business owners can borrow from N10 Million to N75 million. The repayment term is 6-24 months. The processing fee is 1% and the insurance fee is 0.99%.

Advans Nigeria Business Loan is available for Nigerians and non-Nigerians who have been residents for 10 years. However, you must be above 21 years old. You must also provide a valid means of identification and 3 passport photographs.

You can visit this page to apply or learn more about this loan offer.

4. GT Bank QuickCredit for Small Business

The Guarantee Trust Bank QuickCredit for Small Business is aimed at providing funds needed for day to day needs of SMEs. The loan is focused on education, healthcare, retail pharmacies, diagnostic centers, trade, and service.

If your business happens to be among the mentioned sectors then this loan offer will favor you.

This financial institution believes that running a business shouldn’t involve unnecessary running around. In line with this belief, they have designed this loan option to serve as a solution.

With the GT Bank QuickCredit for Small Business, you can borrow from N250,000 to N10 Million. The loan tenure is 6 months (12 months for schools) and the interest rate is 1.5% per month (16% per annum).

One good thing about this loan is that funds are disbursed instantly once approved. Customers can also access up to 50% of the average annual turnover.

You can visit this page to apply or learn more about the loan.

5. Moniepoint Small Business Loans

This is another loan offer for you if you are looking for a loan for a startup business in Nigeria!

This loan is provided by Moniepoint Microfinance Bank and is aimed at providing financial support to businesses to help them grow flexibly.

With this loan offer, you can borrow up to N90 Million. The interest rate is as low as 10% per annum and the repayment term is selected to match your pace. No guarantor, and no collateral required.

You can visit this page to apply or learn more about the Moniepoint Small Business Loans.

6. Zenith Bank Business Loans

Zenith Bank Plc is another reputable financial service provider in Nigeria that provides business loans.

They offer both MSME loans and SME loans. Whether you are looking forward to starting a business or want to fund your existing business, Zenith Bank got you covered.

Here, you can borrow up to N10 Million. The loan tenure is from 12 to 24 months. The interest rate is 9% to 27% per annum (depending on the loan type), and the repayment term is monthly or quarterly repayments.

You can visit this page to apply or learn more about Zenith Bank Business Loans.

7. ALAT By Wema SME Loans

ALAT by Wema is a digital banking platform provided by Wema Bank Plc. This platform allows users to conveniently perform all their financial transactions online without any need to physically visit any of their branches.

With the platform, you can send and receive money, pay bills, perform bulk transactions for businesses, and do more, from anywhere in the world.

The good news is that this platform also offers instant loans, including Small and medium-sized enterprises (SME) Loans.

With the ALAT By Wema SME Loans, users can borrow up to N5 Million. The interest rate is 9% per month and the tenure is 12 months.

You can visit this page to apply or learn more about the Loan offer.

8. Lapo Microfinance Bank SME Loan

You can also access small and medium-sized enterprises (SME) loans with the Lapo Microfinance Bank.

This loan offer is provided to help individuals overcome the obstacles of running a business to aid their growth and expansion.

With the Lapo Microfinance Bank SME Loan, users can borrow up to N10 Million. The tenure is 12 months. No collateral is required and the interest rate is highly competitive.

You can visit this page to apply or learn more about the Loan offer.

9. First Bank SME Loans

The First Bank SME Loan is another option for you if you are looking for a loan for a startup business in Nigeria!

First Bank believes that Small and Medium Scale Enterprises are key drivers of the economy, and by so doing, designed this loan offer to facilitate and support their growth.

This loan comes with highly competitive interest rates and the repayment term is very fair.

You can visit this page to apply or learn more about the Loan offer.

10. Bank of Industry Business Loans

Bank of Industry Limited, founded in 1959, is the oldest and largest Development Finance Institution in Nigeria.

This financial institution, headquartered at No. 23 Marina Street P.M.B 12855 Lagos Island, in Lagos State, is owned by the Ministry of Finance Incorporated Nigeria, the Central Bank of Nigeria, and private shareholders.

They offer various financial services. These include trustee services, leasing services, savings, insurance products, term loans, and working capital loans.

With this bank, you can also access business loans. These include micro businesses, SMEs, and large enterprises loans.

You can visit this page to apply or learn more about the Bank of Industry Business Loans.

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Loan For Startup Business in Nigeria: Final Thoughts

Getting a loan for a startup business in Nigeria is no doubt a bold and proactive step to establish and gain financial freedom.

Even though you may encounter some challenges, it’s wise to take the bull by the horns. Remember that fire in your belly that sparked your dream? Fan it until it roars! Work smart, work hard, and never let a setback dim your light like a harmattan wind.

While getting a startup loan is helpful, remember to cut your coat according to your clothes. Borrow responsibly! Don’t bite off more than you can chew.

Thanks for following this article to the end! I believe that by now you have understood everything about this topic and can now get your loan for a startup business in Nigeria conveniently.

If you have any opinion or a question concerning this, don’t forget to use the comment section below!

Source: Instantmoni.com.