Business Loans in Nigeria: Funding for SMEs (2026)
Business loans in Nigeria: funding options for SMEs (2026)
Access to finance is one of the biggest hurdles for Nigerian businesses. This guide runs through the main funding routes, what lenders look for, and how to compare the true cost so you borrow on the right terms.
Where SME funding comes from
- Commercial banks (CBN-licensed) — term loans, overdrafts and working- capital facilities. Larger amounts, stricter requirements, slower approval.
- Licensed digital / fintech lenders — faster, smaller working-capital loans. Confirm the lender is FCCPC-approved (same register as consumer digital lenders).
- Development finance — schemes such as the Bank of Industry (BOI) and government/CBN intervention programmes, often at concessional rates for qualifying sectors. Check current eligibility and whether the scheme is open.
What lenders look for
- Time trading (many want 6–24+ months).
- Turnover and cash flow (bank statements).
- Business registration (CAC) and, often, director identification.
- Sometimes collateral or a personal guarantee.
Get your paperwork in order first — clean bank statements and registration speed everything up.
Compare the total cost, not just the rate
- Interest rate and the effective cost over the term.
- All fees (arrangement, management, insurance).
- Amount and term available.
- Security required (collateral / guarantee).
- Speed to payout.
Cheaper isn't always right if it's too slow for your need — but don't let speed blind you to an expensive total cost.
Frequently asked questions
Bank loan or fintech loan for my business? Banks for larger, cheaper, slower funding; fintech lenders for fast, smaller working capital. Match the loan to the need and compare the total cost.
Are there cheaper government-backed options? Development-finance schemes (e.g. BOI) can offer concessional rates for qualifying businesses — check current eligibility and availability.
What do I need to apply? Typically business registration (CAC), bank statements, director ID, and sometimes collateral. Requirements vary by lender.
Compare and dig deeper
- Compare funding options on our business loans page — development banks, fintech lenders and the true cost of each.
- Go deeper: BOI loan requirements & how to apply, SME loans without collateral, and how to register a business with the CAC.
Educational information, not financial advice. Verify terms with the lender and confirm licensing before borrowing.
Compare business loans
View all & filter →
Cheapest (government DFI)
Bank of Industry (BOI)
★★★★★
≈9%/yr (subsidised)
Interest
From ₦5m (SME schemes to ₦1bn)
Loan Amount
3–5 years (moratorium up to 12mo)
Term
Federal govt development bank
Provider
≈30–40 working days
Processing
Registered SMEs with a solid plan
Best For
large
Amount Tier
Pros
- Single-digit interest (≈9%/yr) — far cheaper than commercial credit
- Large amounts and 3–5-year terms with a moratorium
- Government-backed; apply directly on boi.ng (no paid facilitators)
Cons
- Slow: roughly 30–40 working days to process
- Needs CAC registration, business plan, feasibility and collateral
- Not for urgent cash-flow gaps
Fees, eligibility & documents
Fees
InterestApprox. 9%/yr (subsidised)
Other chargesProcessing/appraisal/commitment fees may apply
Term3-5 years; moratorium up to 12 months
Eligibility
- A CAC-registered business
- Trading history / bank statements
- A Tax ID (your NIN or CAC number)
Documents needed
- CAC certificate
- Recent bank statements
- Valid director ID; a business plan for larger facilities
Best for long tenors
Development Bank of Nigeria (DBN)
★★★★☆
Concessional (set by your bank/MFB)
Interest
MSME-scale (via your lender)
Loan Amount
Longer tenors (up to ~10 years)
Term
Federal wholesale development bank
Provider
Through participating banks/MFBs
Access
Longer-term MSME finance
Best For
large
Amount Tier
Pros
- Longer tenors than commercial loans
- On-lent through licensed banks/MFBs (regulated)
- Serves MSMEs that banks often overlook
Cons
- You can't borrow from DBN directly — apply via a participating bank/MFB
- Final rate and terms depend on that intermediary
- Still needs registration and business records
Fees, eligibility & documents
Fees
InterestConcessional (set by your bank/MFB)
AccessVia a participating bank/MFB (not direct)
TermLonger tenors (up to ~10 years)
Eligibility
- A CAC-registered business
- Trading history / bank statements
- A Tax ID (your NIN or CAC number)
Documents needed
- CAC certificate
- Recent bank statements
- Valid director ID; a business plan for larger facilities
Best for existing merchants
Moniepoint (business loans)
★★★★☆
By profile (above a DFI)
Interest
Working-capital scale
Loan Amount
Short-term
Term
CBN microfinance bank
Provider
Often none for smaller amounts
Collateral
Existing Moniepoint merchants
Best For
small
Amount Tier
Pros
- Fast decision based on your transaction history
- Often no separate collateral for smaller loans
- CBN-licensed microfinance bank (deposits NDIC-insured)
Cons
- Best rates need a Moniepoint transaction record
- Costlier than a BOI/DBN facility
- Short terms — for cash flow, not big capex
Fees, eligibility & documents
Fees
InterestBy profile (above a DFI)
CollateralOften none for smaller amounts
TermShort-term working capital
Eligibility
- A CAC-registered business
- Trading history / bank statements
- A Tax ID (your NIN or CAC number)
Documents needed
- CAC certificate
- Recent bank statements
- Valid director ID; a business plan for larger facilities
FairMoney (SME loans)
★★★★☆
By credit profile (runs high)
Interest
Small-business scale
Loan Amount
Short-term
Term
CBN microfinance bank
Provider
Light / none for small amounts
Collateral
Fast, small bridging loans
Best For
small
Amount Tier
Pros
- Fast in-app decision and disbursal
- CBN-licensed microfinance bank (deposits NDIC-insured to ₦2m)
- Little or no collateral for smaller amounts
Cons
- Rates run high for thin-credit borrowers
- Small amounts and short terms
- Requires BVN and data access
Fees, eligibility & documents
Fees
InterestBy credit profile (runs high)
CollateralLight/none for small amounts
TermShort-term
Eligibility
- A CAC-registered business
- Trading history / bank statements
- A Tax ID (your NIN or CAC number)
Documents needed
- CAC certificate
- Recent bank statements
- Valid director ID; a business plan for larger facilities
Renmoney (SME loans)
★★★★☆
≈2.5–4%/mo
Interest
Up to ₦6,000,000
Loan Amount
Longer (up to ~24 months)
Term
CBN microfinance bank
Provider
Larger amounts, lower fintech rates
Best For
large
Amount Tier
Pros
- Larger amounts and longer terms than payday apps
- Lower rates than most instant-loan apps
- CBN-licensed microfinance bank
Cons
- Slower and stricter than instant apps
- Still costlier than a BOI/DBN facility
- Needs verifiable income or business turnover
Fees, eligibility & documents
Fees
InterestApprox. 2.5-4%/mo
AmountUp to ₦6,000,000
TermLonger (up to ~24 months)
Eligibility
- A CAC-registered business
- Trading history / bank statements
- A Tax ID (your NIN or CAC number)
Documents needed
- CAC certificate
- Recent bank statements
- Valid director ID; a business plan for larger facilities
CBN-licensed MFB
Accion Microfinance Bank
★★★★☆
Micro and SME business loans (working capital, asset finance) plus in-app instant loans
Loan Type
Structured instalments — varies by product and loan size
Tenor
Licensed by the Central Bank of Nigeria (stated on its site)
Licence
Instant for small in-app loans; branch-assessed for larger SME facilities
Speed
Small businesses that want a banking relationship and advisory support, not just cash
Best For
mfb
Type
Pros
- Two decades of MSME lending and 70+ branches across 12 states — physical support most digital lenders cannot offer
- Business advisory services alongside credit, which improves approval odds and financial management
- Backed by the global Accion network with a stated CBN licence
Cons
- Larger loans go through branch assessment — slower than app-only lenders
- Microfinance interest rates are well above commercial-bank pricing; confirm the rate sheet at a branch before committing
- Physical presence is concentrated in 12 states, so coverage is not nationwide
Fees, eligibility & documents
Fees
InterestMicrofinance-level pricing — higher than commercial banks, lower than most loan apps for equivalent amounts; get the current rate in writing from your branch or the app before accepting
Eligibility
- Operating micro, small or medium business (registered or informal, depending on product)
- BVN and basic KYC; trading evidence for business facilities
- Guarantor or collateral requirements vary with loan size
Documents needed
- Valid ID and BVN
- Evidence of business activity (shop, records, statements)
- Guarantor details for larger facilities
Widest branch reach
LAPO Microfinance Bank (SME Loan)
★★★★☆
SME loan plus micro/group business loans, agric and asset finance
Loan Type
Structured instalments — set per product at the branch
Tenor
National microfinance bank licence from the CBN (per independent records)
Licence
Branch-based assessment — days, not minutes
Speed
Informal and small traders outside big cities who need a lender that is physically present
Best For
mfb
Type
Pros
- Presence across 30+ states including rural and peri-urban areas most lenders ignore
- Track record measured in trillions of naira disbursed across SME, agric and consumer lending
- Serves informal businesses that banks and most digital lenders decline
Cons
- Applications run through branches with guarantor requirements — much slower than digital lenders
- Microfinance rates are significantly higher than commercial-bank SME products
- Its website publishes little product detail, so you must visit a branch to get concrete terms
Fees, eligibility & documents
Fees
InterestMicrofinance-level pricing — expect materially more than a commercial bank; insist on the full repayment schedule in writing at the branch before signing
Eligibility
- Operating small or medium enterprise (SME Loan); micro loans serve informal traders, often via groups
- Valid ID and BVN
- Guarantors and/or savings history with LAPO commonly required
Documents needed
- Valid ID and BVN
- Evidence of business operation
- Guarantor details; product-specific requirements set at the branch
Bank rate
GTBank (QuickCredit for Small Business)
★★★★☆
Digital small-business loan against account turnover
Loan Type
Monthly instalments — confirm the current maximum with the bank
Tenor
Product of Guaranty Trust Bank, a CBN-licensed commercial bank
Licence
Fast for pre-qualified customers via GTBank digital channels
Speed
Small businesses already banking with GTBank that want cheap working capital
Best For
bank
Type
Pros
- Commercial-bank pricing — substantially cheaper than microfinance or digital SME lenders
- No separate application bureaucracy for pre-qualified customers; drawn through GTBank's digital channels
- Sits inside a full business-banking relationship (accounts, POS, collections)
Cons
- Only for existing GTBank business customers — turnover in your GTBank account drives your limit
- Newer businesses or those banking elsewhere will not qualify
- The bank publishes little public detail on the product page; terms only become clear once you are pre-qualified
Fees, eligibility & documents
Fees
InterestBank-level monthly rate — among the lowest available for SME credit in Nigeria; confirm the current rate and any insurance/management fees on your offer before drawing down
Eligibility
- Active GTBank business account with consistent turnover
- Satisfactory credit bureau record
- Pre-qualification is at the bank's discretion based on account behaviour
Documents needed
- Generally none — the bank relies on your account history and BVN/RC records
Sterling Bank (business loans)
★★★★☆
Working capital, asset/lease finance, contract & LPO finance, distributorship finance
Loan Type
Structured per facility — agreed during assessment
Tenor
Products of Sterling Bank, a CBN-licensed commercial bank
Licence
Online application, then bank assessment — days, not minutes
Speed
Registered SMEs with contracts, distributorships or asset needs beyond simple cash loans
Best For
bank
Type
Pros
- Four distinct facility types cover real SME needs — LPO/invoice finance and distributorship finance are rare in digital-lender line-ups
- Commercial-bank pricing, far below microfinance and app-based SME credit
- Straightforward online application to start the process
Cons
- Not instant — applications go through bank credit assessment
- Amounts, rates and tenors are not published upfront; terms emerge only during assessment
- A Sterling business account and formal registration are effectively required
Fees, eligibility & documents
Fees
InterestBank-level pricing set per facility and risk profile — no rates published upfront; negotiate and get the full term sheet before accepting
Eligibility
- Registered business, generally with a Sterling Bank account
- Trading history and financial records supporting the facility requested
- Contracts/LPOs or distributorship agreements for the specialised facilities
Documents needed
- CAC registration documents
- Bank statements and financial records
- Contract or LPO documentation where applicable
CBN-licensed MFB
Carbon for Business
★★★★☆
Working capital, asset finance and small flex loans for registered businesses
Loan Type
1-12 months (longer tenors for returning customers)
Tenor
Carbon Microfinance Bank (RC 1642222), licensed and regulated by the CBN; NDIC-insured deposits
Licence
24-48 hours to disbursement, per Carbon
Speed
Registered SMEs that need working capital in days without pledging collateral
Best For
digital
Type
Pros
- CBN microfinance-bank licence and NDIC-insured deposits — regulated footing most digital SME lenders lack
- No collateral on working-capital loans, with rates confirmed before you accept
- Repayments structured as daily, weekly or monthly auto-debits matched to cashflow
Cons
- Expensive relative to bank SME credit — advertised rates start around 3.99% per month, which annualises steeply
- Short tenors: months, not years — this is cashflow finance, not expansion capital
- Requires a registered business with about six months' trading history; auto-debit repayment can strain thin cashflow
Fees, eligibility & documents
Fees
InterestHigh — monthly-rate digital credit; Carbon advertises rates 'from 3.99% per month', so the annualised cost far exceeds bank lending. Check your exact offer before accepting
Eligibility
- Registered Nigerian business (CAC)
- Roughly six months or more of trading history
- Business bank account for assessment and auto-debit repayments
Documents needed
- CAC registration
- Bank statements
- BVN/director KYC in the app
