Nigeria Loans – Federal Government and Private Loans For Businesses and Personal Use

Nigeria Loans – Federal Government and Private Loans For Businesses and Personal Use

Getting a loan can be easy and sometimes difficult but how easy or difficult it is, depends on the loan option you picked or decided to apply for. 

In Nigeria today, there are several loan options(both government and private loans) that can be explored by individuals for personal loan or business loan options. 

In this post, we will share some very popular loan options and some not-so-popular loans for both individuals and businesses. So make sure you read carefully and click on the attached links for each loan to get more comprehensive and detailed information on the loans shared and remember to leave a comment if you find any of the loans useful or you are confused about any of them. 

Nigeria Loans – Federal Government Loans

The Buhari lead administration has released several loan options, especially during this post-COVID-19 period and some of these loans are available for businesses in the agricultural sector while others are there for SMEs and households. The Central Bank of Nigeria (CBN) recently announced the addition of NGN 50 billion ($120 million) to its Targeted Credit Facility, a stimulus program for micro, small, and medium-sized enterprises (MSMEs) as well as households affected by the Covid19 pandemic. Below are some of the FG loans available; 

• AGSMEIS Loan
• Covid-19 Household Loan
• SEIFAC 
• BOA-SMEDAN
• NYIF Loan

Nigeria Loans – Private Loans 

These are loans offered by companies, Microfinance banks, and Instant loan apps. 

In this category, there are several loan platforms, microfinance banks, and cooperative societies from which you can get loans to finance your business or personal needs. Below are some of the options we have carefully reviewed and you can take advantage of the details here to get your loan almost instantly. 

• Stecta Loan
• Dangote Foundation/ bank of industry loan
• Kwaba Loan
• Accion Microfinance Loan
• Branch Loan and 
• Opay Loan

The above-mentioned options are just a few of the options we have reviewed here on our site and have provided full detailed information to help you get started. 

I Need a Small Loan, which Option is Best?

If you need a small loan ranging from N1,000 to N100,000, then using the instant loan options is the best solution for you because they are usually very fast with no collateral. The interest rate for all loan options has been mentioned and calculated where necessary. 

Nigeria Loans – Interest Rate for FG Loans 

During this post-COVID-19 period, the federal government has reduced the interest rate of most CBN loans including the various Anchor borrower program loans to 5% and all loans are capped at a 9% interest rate. This does not apply to private or personal loans listed above(except the Dangote Foundation fund). 

Nigeria Loans – Interest Rate for Private Loans 

The loans offered by various microfinance banks, instant loan apps, and other companies usually have an interest rate of 15 – 30 percent depending on the repayment plan set by the organization.   

TraderMoni

Tradermoni has been around for some years now and for some persons, it appears to have ended but that’s far from the truth because the President Tinubu administration has relaunched this interest-free loan and has increased the loan amount from N10k(Ten Thousand Naira) to N50k(Fifty thousand Naira) and all Nigerian in the small business sectore and artisans are eligible to get this loan. Details are here.

IYALOJA FUND

Iyaloja Fund is a N75bn(Seventy Five Billion) market women fund aimed at giving 50,000 Naira to 1.5 Million Nigerian market Women at zero interest to help increase their capital base and increase their business performance.

JAIZ BANK PLC-SMEDAN Matching Fund

Nigeria by Development Finance Institutions (DFIs), fund matching has since been embraced by most financial institutions for making credit/financing available to micro and small enterprises (MSEs).

AGSMEIS Loan 

AGSMEIS is an acronym for Agri-Business/Small and Medium Enterprise Investment Scheme. It is an initiative to support the Federal Government’s efforts and policy measures for the promotion of agricultural businesses and small/medium enterprises (SMEs) as vehicles for sustainable economic development and employment generation. 

Covid-19 Household Loan

There are various loan options under the COVID-19 targeted facility loan and the household loan is just one of the options. This loan option is meant for households in Nigeria whose income has been impacted by the COVID-19 pandemic.

SEIFAC Loan

SEIFAC is an acronym for Smallholder Economic Interest Farmers Agricultural Cooperative. The SEIFAC was established in 2015 with the launch of the CBN Anchor Borrowers’ Programme (ABP) which was launched by President Muhammadu Buhari (GCFR) on November 17, 2015.

BOA-SMEDAN

The Bank of Agriculture(BOA) and Small and Medium Enterprises Development Agency of Nigeria(SMEDAN) machining fund is a joint intervention fund created by the above-mentioned bodies to create synergy so as to boost the output of micro and small enterprises (MSEs) across the country.

NYIF Loan

The Nigeria Youth Investment Fund (NYIF) is a three(3) years ring-fenced fund designed to empower youth-owned businesses and fundable ideas with funds to start up or boost their existing business in Nigeria. So far, the 2020 application is completed while the disbursement process is still on and the 2021 phase is set to commence. 

NG-CARES Grant

Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES). The NG-CARES program seeks to mitigate the impact of the COVID-19 crisis on the livelihoods of poor individuals, farmers, vulnerable households, communities, and owners of micro and small enterprises. The financial instrument is the Programme for Result (PforR) at the states and FCT while the Federal level is financed through the Investment Project Financing (IPF).

NEDIS COVID-19 Special Fund

NEDIS is an acronym for Nigeria Enterprises Development Interactive Scheme. NEDIS is an NGO(non-governmental organization) that is determined to support and build a stable economy in Nigeria through collective efforts(I believe the collective effort here means crowdfunding) which is why the NEDIS COVID-19 special fund grant is a contributory Intervention Fund (CIF).

CBN TIES

CBN TIES is an acronym for the just-launched Central Bank of Nigeria Tertiary Institutions Entrepreneurship Scheme for polytechnic and university graduates with entrepreneurial skills for Entrepreneurship Development, Economic Development, and Job creation. Under this scheme, Nigeria graduates who wish to venture into entrepreneurship can access up to 5 Million Naira to run a sole proprietorship business and up to 25 Million Naira for a partnership business. The loan has a single interest digit of 5% to 9% and is currently open for all Nigerians.

Read also: Presidential Conditional Grant Programme

Specta Loan

Specta Loan is a product of Sterling Bank Limited designed to give you an online lending platform without the need to visit the bank or office and requires zero paperwork and no collateral. Specta gives you loans of up to 5 Million in one transaction which can be received within a few minutes.  

Dangote Foundation/ bank of industry loan

The Dangote Foundation/BOI Fund is a N5 billion(five billion Naira) matching fund, which could be accessed by Enterprises and Limited Liability Companies engaged in the Manufacturing, Agro-Processing, and Merchandising sectors for made in Nigeria goods, with a single obligor limit of N50.0 Million with an interest rate of 5%.

Kwaba Loan

Kwaba is not a conventional loan company that hands out loans for business or medical bills rather Kwaba is a loan company that helps interested Nigerians pay their rent directly to the landlord in bulk while the person repays the loan amount monthly as selected by the individual at the point of signing up.

Accion Microfinance Loan

Accion MfB Limited was founded in 2006 and began operations in May 2007 on license from the Central Bank of Nigeria.

Accion microfinance bank is an old name in the microfinance industry and they have been around for a long but are still very active.

Over 30% of SMEs in Nigeria today use Accion microfinance banks as their major loan option when it comes to raising funds to boost their business.

Read also: P-yes Registration 2022

Branch Loan

Branch is a microloan app that enables its users to request loans instantly from the comfort of their Android or iOS phone. Branch as an online lender offers loans such as; single payment loans, installment loans, and payroll loans to interested borrowers without collateral and all operations are carried out using a smartphone.

Opay Loan

Opay loan or Okash is a feature in the Opay app introduced by Opay in 2019 to enable individuals to request a microloan(small loan) from the comfort of their smartphone using the Opay app and you can get as much as 60,000 Naira loan using this loan app.

The loan options available in Nigeria today are so much that we can’t list them all in one post. As you read the details of each loan listed here, you will find links to other loans in Nigeria we have covered in previous posts. Do well to read them and try them out if they meet your requirements.

Read also: Top Grants for Africans

NAPE SoftLoan

Established in 2015, the National Alliance for Poverty Eradication in Nigeria (NAPE) is a non-profit making group that is driven by Nigeria’s youth concern for economic growth. Since the establishment of the alliance, it has contributed greatly to the eradication of poverty and hunger and economic development in Nigeria. NAPE offers two loan options to Nigerians looking for loans to run their business or manage their homes or even service existing loans. See details here

Nigeria Loans – Final Words

A loan is good when utilized properly and the repayment plan is well drawn out. Do not apply for a loan if you don’t have intentions of repaying or don’t know how you can get the money to repay as this can lead to depression as the loan companies or banks start calling to request a payback. 

Read also: Grants for Africans

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