In this article, we would be profiling the top 5 small business loans and grant opportunities for small businesses during this coronavirus pandemic. All small business owners, entrepreneurs and investors can grab this opportunity. Many Nigerian companies and businesses already had great projections for this year 2020 and did expect coronavirus was going to surface. These grants and loans are for both essential and non essential businesses. Also we would be discussing the best stimulus package for small business in 2020.
Nigeria is one of the fastest growing counties in Africa in terms of economy with a population of about 200 million people. When the pandemic started in 2020, a lot of essential and non-essential businesses were affected and. some companies had to shut down productions at some point. This had a great impact on the economy as a lot of people were rendered jobless. The governments and other private sector investment programmes have come up with great loan and financing schemes to help both small businesses and large companies during this period and we would be discussing on the various options so you can choose the one that suits you.
Over the years, Loans were only accessible to large businesses and corporations and were mostly being disburses by commercial banks who required lengthy documentations and collateral. It was very difficult for small busineses and SME’s owner to get access to loan, but with the increase penetration of internet in Nigeria and spring up of tech enabled fintecth companies, these SME’s can now get loans without collateral and easily from the comfort of their homes and with little documentations. Also commercial banks have also joined the bandwagon of dispersing loans to small scale businesses.
From a recent PWC report , SME’s contribute about 48% to Nigeria national GDP and account for more than 80% of employment. This means SME is a very important sector of the cuntry.
Sme Loans Without Collateral In Nigeria
Kiakia.co is the first on out list. if you are loking for a purely digital application loan app in Nigeria, they are the one. The loan company which is based in Abuja and backed by sterling bank is one of the fastest loan disbursement platform for small businesses with no collateral. It uses machine learning and psychometric est for credit scoring. They offer loans for both personal and busieness needs. The minimum amount of loan you can request for is #50,000 naira and their interest rate is about 3.5% per month. They also provide opportunities for private individuals to invest in giving loans through their platform.
Lydia is one of the most efficient and robust loan disbursing platforms in Nigeria. They are well known by small & medium scale business owners in Nigeria. They disurs loans from 150,000 naira to millions to businesses and they use over 100 data points for credit scoring business applications. They charge an interst rate of about 3.5%.
Renmoney is also a fairly recognized loan platform in Nigeria. They provide loans to bth employees and small business owners and they provide up to 4 million naira. They use your business financial history to perform credit score on your application. They check your history and income statement to determine your chances of repayment before disbursing loans to you. They charge abut 3% interest monthly.
Grofin provides financials and business loans to business all across Africa. They check your business income and financial statement and also target existing businesses who have good numbers but are looking for loans for expansions. They provide loans starting from 100,000US dollars to millions of dollars.
Formerly Paylater, carbon is a well recognized loan brand in Nigeria, they offer loans to both individuals and small businesses.They offer up to 20 million naira and after reviewing your application, they disburse the loan within 1 to 3 days. Carbon requests for your Bank Verification or BVN number to determine your credit score