10 Best Online Lending Platforms for Small Business Loans in Nigeria – 2019 Update.Best Online
Lending Platforms for Small Business Loans… Thinking about how to get a quick loan to start up a business in Nigeria? This article will provide you with the 10 best online lending platforms for quick and efficient loan services that can meet your needs.
Best Online Lending Platforms
The online loans provide a digital form of credit which lasts for a specified period of time on fixed-interest terms. The loan can be repaid on a regular installment basis or in full on the redemption date.
Loans play a vital role in stimulating the Nigerian economy because of the comparatively under-developed capital markets. Loans from traditional lenders are strained for low financial gain and freelance customers because of high-interest rates, strict documentation requirements, short loan maturities, and the inability to supply collateral.
The following are the 10 best online lending platforms in Nigeria:
1. Pennylender
Pennylender is an online moneylender that provides single payment loans, installment loans, and payroll loans for borrowers through their employer. The amount borrowed is then deducted from your monthly salary. The minimum amount for loan is N10,000 and the upper limit for a new customer is N500,000.
The size of loan and interest rate charged is determined by data provided by your employer such as salary, length of service and position. The loan can be up to 50% of your Monthly Salary and the loan tenure is from 3 months to 6 months.
Once you decide on the amount you want and you have set up your repayment schedule, money is sent to your salary bank account instantly.
2. Credit Direct
Credit Direct is an online moneylender that provides Payroll based consumer loans to eligible individuals through their employer. The amount borrowed is then deducted from your monthly salary. The minimum amount for loan amount is N100,000 and the upper limit for a new customer is N2,500,000.
The size of loan and interest rate charged is determined by data provided by your employer such as salary, length of service and position. The loan can be up to 50% of your Monthly Salary and the loan tenure is from 3 months to 6 months.
Once you decide on the amount you want and you have set up your repayment schedule, money is sent to your salary bank account instantly.
3. C24
C24 is a moneylender that provides retail loans for consumers in need of quick financial solutions. The minimum loan amount is N40,000 and the upper limit for a new customer is N750,000, while for existing customers is up to N1,000,000. Both depend on borrower’s capacity to repay assessed based on verifiable income level and other selection criteria.
4. Microcred Microfinance Bank
Microcred Microfinance Bank is a CBN licensed institution offering loans for multiple purposes in Nigeria. The services offered include:
– Microloans: This is for entrepreneurs, traders and students to access up to N1m for existing businesses. The interest rate charged by Microcred on loans is a minimum of 7% with the total dependent on the tenure of the loan.
Microlending is the provision of financial services for people who do not have access to traditional financial services such as banks. These are borrowers are possibly dealing in small amounts of money daily, living in hard-to-access areas, without credit histories or who do not meet “traditional requirements” within the banking sector.
– SME loans: They provide a loan of up to 20m to help consolidate or invest in your business, which is repayable in up to 24 months. The loan is for use as working capital or for the purchase of fixed assets.
5. Hasal Microfinance Bank
Hasal Microfinance Bank is an institution licensed by CBN that offers loans for multiple purposes in Abuja, Nigeria. The services offered include:
– Microloans: This is for entrepreneurs, traders and students to access up to N1m for existing businesses. The interest rate charged by Hasal is a minimum of 7% with the total dependent on the tenor of the loan. The loan tenure is up to 12 months.
– Group loans: A group loan is a form of rotating credit. A rotating credit scheme is where a group of individuals fill the role of an informal financial institution through repeated contributions and withdrawals to and from a common fund.
– SME loan: Hasal offers loan products tailored to meet the business needs of Small & Medium Enterprises (SME). SME finance is a financing solution accessible for specific business medium-term projects.
6. Kia Kia
KiaKia is a moneylender that provides direct personal loans at flexible rates, and also matches borrowers with individual or corporate lenders at mutually-agreed rates. They offer loans from N10,000 and N200,000 for a minimum duration of 7 days and a maximum of 30 days.
Borrowers who earn financial responsibility trust points over a period of time will be able to access much bigger amounts at longer tenure and more flexible interest rates.
7. Cedar Microfinance Bank
Cedar Microfinance Bank is an institution licensed by CBN that offers loans for multiple purposes in Nigeria. The services offered include:
– Microloans: This is for entrepreneurs, traders and students to access for existing businesses. Microlending is the provision of financial services for people who do not have access to traditional financial services such as banks.
Loan sizes offered by Cedar ranges from ₦200,000 to ₦500,000 and have a repayment period of up to 6 months.
– Group loan: Cedar Microfinance Bank group based loans are loan facilities designed for micro-enterprise operators, who do not have conventional collateral. These loans are up to ₦200,000 and have a short tenure.
To supplement collateral requirements, the loans are secured partly by cash and partly by group guarantees. To access these types of loans one has to be a member of registered and unregistered groups of 5-30 members.
– Asset Financing: This is a short to medium term loan granted to customers for the purchase of movable capital assets, mainly Motor Vehicles, agricultural equipment, construction equipment, industrial plant & machinery, Office and I.T equipment.
8. Chase Microfinance Bank
Chase Microfinance Bank is an institution licensed by CBN that offers multiple purposes in Nigeria. The services offered include:
– Microloans: This is for entrepreneurs, traders and students to access for existing businesses. Microlending is the provision of financial services for people who don’t have access to traditional financial services such as banks.
– Group loan: Chase Microfinance Bank group based loans are loan facilities designed for micro-enterprise operators, who do not have conventional collateral. These loans are up to ₦200,000 and have a short tenure.
To supplement collateral requirements, the loans are secured partly by cash and partly by group guarantees. To access these types of loans one has to be a member of registered and unregistered groups of 5-30 members.
– Asset Financing: The loan is for traders, artisans and low-income earners in paid employment for the acquisition of assets like electronics, generator, kitchen, and other household products.
9. Ibile Microfinance Bank
Ibile Microfinance Bank is an institution licensed by CBN that offers loans for multiple purposes in Nigeria. The services offered include:
– Microloans: This is for entrepreneurs, traders and students to access up to N1m for existing businesses. The interest rate charged by Ibile on loans is a minimum of 5% with the total dependent on the tenure of the loan.
– SME loans: They provide a loan of over N500k to help consolidate or invest in your business, which is repayable in up to 24 months. The loan is for use as working capital or for the purchase of fixed assets. The loan amount is above N500, 000, 3.5% interest rate and 6 months repayment plan.
– Agriculture: This loan can be accessed by arable/field crops farmers, fish farmers, livestock farmers, tree crop farmers, agricultural produce marketers. Ibile Microfinance is committed to serving the rural sector to improve the expansion of small and medium scale Agricultural enterprise. Tenure is between 3-6 months.
– Salary Advance: Staff members of Private Organization with a minimum of 10 Staff, Staff of Blue Chip companies, Civil and Public Servants. The salary must be paid into a bank account. Tenure is between 3-6 months. Management Fee 1%, Insurance Fee 1%.
– Asset Financing: Ibile Asset Finance gives you the opportunity to own that asset you had always longed for, be it a generator, mobile phone, laptops, washing machine, household furniture etc.
10. Paylater
Paylater is an easy online lending platform that provides short-term loans to individuals and small businesses in Nigeria to help cover unexpected expenses or urgent cash needs.
With Paylater, you can access up to 500,000 Naira loan with no collateral. Once your application is approved, funds are typically received within 1 to 3 business days. Making on-time repayments can grant you access to higher credit limits for your next loan.
In conclusion, although these platforms claim to offer quick loans without collateral, it is advisable to read the Terms & Conditions carefully with understanding before going through with the application.
Another factor to consider is the interest rate and payback period. As a business, you will not want to go in for loans with a very short payback period except you very sure you will earn back the money in no-time.
I hope this article will help you in choosing the best online lending platform for you.
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