Several banks in Nigeria offer business loans to entrepreneurs and business owners. The procedure for obtaining a business loan may vary depending on the bank and the type of loan you are applying for. The banks that offer business loans will be discussed in this article
The purpose of the loan is to finance small and medium business
Ideas capable of reshaping our world often require vast sums of money to bring to life. The loans have never met an idea they could not birth. Some banks offer business loans.
General steps involved in the processing of the banks that offer business loans
- You should do research and compare different banks, Before applying for a business loan, it is important to research and compare different lenders to find the best loan options, interest rates, and other requirements if it is favorable. In other words to know their terms and condition.
- Know and determine your eligibility, Most banks have certain eligibility requirements from other banks that businesses must meet to qualify for a loan. It may include factors such as credit score, revenue, and time in business.
- Get your document ready, To apply for a business loan, you will typically need to provide documentation such as financial statements, tax returns, and business plans to enable the bank to see the seriousness.
- Submission of application: Once you have gathered the necessary documents, you should apply for the banks that offer business loans.
- You should wait for approval after submitting your application, you will need to wait for the bank to review your application and make a decision on whether to approve your loan or not.
Types of Banks that Offer Business Loans
1. Zenith Bank Loan
Zenith Bank is one of the banks that offer business loans, including overdrafts, term loans, and asset finance. The application process can be completed online, and decisions are usually made within 48 hours
Types of Zenith bank business loan
A.Loan for SME
The loan amount: the minimum and maximum amount is 500,000-2000,000 naira.
The rate is 27%
The tenor is 12 months.
Condition:
Customers’ BVN should be provided
All transactions should be done by the customer to Zenith bank
Customers should have a personal guarantee
The customer should allow positive Credit Checks in the account.
B.Z-Woman
Z-Woman is our loan product for female-owned businesses for all sectors primarily geared toward growing our SME sub-sector and diversifying our customer base. it is among the type of loan
Eligibility for the loan
A. Female-owned businesses with a shareholding of 50% or any majority shareholding provided it’s owned by a woman.
Purpose of the Loan
Business Expansion (Working Capital Requirements, Purchase of Raw Materials, Raw Materials & Infrastructure upgrade).
Rate: 16% p.a
Maximum Loan Amount: N10M
Loan tenor: 12 to 24 months
Repayment Time for the loan
Monthly or quarterly repayments in line with the customer’s cash flow from sales and collections into a zenith bank account.
Management Fee: 1% flat
Security inquire about the loan
The customer must accept the BVN covenant
The customer must provide a personal guarantee
Insurance
Customers must have positive Credit Checks and a Company Profile
How to Apply for the Loan
To apply for Z-Woman Business Package is to visit the nearest Zenith Bank plc branch their official website
C.The SME Sub-KD/Sub-Dealer Finance Scheme
This loan enables businesses to access working capital for inventory purchases from Key Distributors of primary fast-moving customer goods(FMCGs) to drive up sales targets, and increase the volume of their business and other expansion needs. this is one of the branch loans for banks that offer business loans
Eligibility for the loan
The Customer Eligible for the Sub-KDs loan should meet up at least N50m in average six months turnover
The purpose of giving the loan
Customers who need business expansion
Sectors that the loan is given
Food, Bakery & Confectionery
Beauty, Style & Fashion
Health & Fitness
Rate: 19% p.a
The maximum Loan Amount is N5M
Loan tenor 12 to 24 months
Repayment method
Flexible repayments in line with customer cash flow from sales/collections into account with Zenith Bank
Management Fee: 1% flat
Security plans
The customer should accept the BVN covenant,
Have a personal guarantee of the customer,
Have Insurance,
On a positive credit check, and Company Profile
How to Apply
To apply for the Zenith SME loan, visit the nearest Zenith Bank branch and speak to any of our relationship managers
Related topic
2. Access Bank
Access Bank is one of the leading commercial banks that offer business loans in Nigeria and helps, to meet the diverse financing needs of businesses in Nigeria including overdrafts, term loans, and invoice discounting. The application process can be completed online, and decisions are usually made within 48 hours.
Types of Access Banks that offer business loans
A.Access Bank Business Loan
This is a term loan designed to provide financing for small and medium-sized businesses in Nigeria to meet their short-term funding needs.
The loan amount ranges from N50,000 to N100 million
It has a flexible repayment period of up to 36 months.
B.Access Bank Creative Sector Loan
This loan is designed to provide funding for businesses in the creative industry, such as fashion, music, film, and art.
The loan amount ranges from N500,000 to N10 million
With a repayment period of up to 12 months.
C.Access Bank Asset Acquisition Loan
This loan is designed to provide financing for businesses to purchase assets such as machinery, equipment, and vehicles.
The loan amount ranges from N50,000 to N100 million
Repayment period of up to 36 months.
D.Access Bank Women Entrepreneurial Loan
This loan is designed to provide financing for women-owned businesses to meet their funding needs.
The loan amount ranges from N500,000 to N10 million
The repayment period of up to 36 months.
E.Access Bank Agric Loan
This loan is available to provide financing for businesses in the agricultural sector if you are into agriculture this is a great opportunity.
The loan amount ranges from N500,000 to N10 million with a repayment period of up to 24 months.
F.Access Bank Contract Finance Loan:
This loan is designed to provide financing for businesses that have contracts with reputable organizations.
The loan amount ranges from N500,000 to N50 million
The loan repayment period is up to 12 months.
G.Access Bank Trade Finance Loan
This loan is designed to provide financing for businesses involved in international trade. The loan amount ranges from $10,000 to $1 million with a repayment period of up to 180 days.
The specific eligibility requirements, interest rates, and application processes for each loan type may vary. It is advisable to contact Access Bank or visit their website for detailed information on their business loan products. There are still other banks that offer business loans
3. First Bank Loan
First Bank of Nigeria is one of the banks that offer business loans, including overdrafts, term loans, and asset finance. The application process can be completed online, and decisions are usually made within 72 hours.
It is one of the leading commercial banks in Nigeria and offers a range of loan products to meet the diverse financing needs of businesses.
First bank Loan Requirments
The specific eligibility requirements, interest rates, and application processes for each loan type may vary. It is advisable to contact First Bank or visit their website for detailed information on their business loan products
The types of business loans offered in first bank
A.First Bank SME Loans
This loan is designed to provide financing for small and medium-sized businesses to meet their working capital needs, purchase equipment, or expand their operations.
The loan amount ranges from N500,000 to N500 million
It has a flexible repayment period of up to 48 months.
B.First Bank Contract Finance Loan
This is one of the first bank loans, designed to provide financing to businesses that have secured contracts with reputable organizations.
The loan amount ranges from N1 million to N500 million
The repayment period is up to 12 months.
C.First Bank Oil and Gas Loan
This loan is designed to provide financing for businesses in the oil and gas sector to meet their funding needs.
The loan amount is from N1 million to N500 million respectively
The repayment period is up to 12 months.
D.First Bank Agriculture Loan
This loan is designed to provide financing for businesses in the agricultural sector.
The loan amount ranges from N500,000 to N50 million only
The repayment period is up to 24 months.
E.First Bank Asset Acquisition Loan
This loan is designed to provide financing for businesses to purchase assets such as machinery, equipment, and vehicles.
The loan amount ranges from N1 million to N500 million only
The repayment period is up to 36 months.
F.First Bank Personal Loan Against Salary
This loan is designed to provide financing for employees of reputable organizations to meet their personal financial needs.
The loan amount ranges from N50,000 to N10 million
The repayment period of up to 48 months.
E.First Bank Mortgage Loans
This type of loan is designed, to provide financing for individuals or businesses to purchase or build a property.
The loan amount ranges from N5 million to N500 million
It has a repayment period of up to 20 years.
The specific eligibility requirements, interest rates, and application processes for each loan type may vary. It is advisable to contact First Bank or visit their website for detailed information on their business loan products
4. Guaranty Trust Bank
Guaranty Trust Bank is also one of the banks that offer business loans or a range of business loans, including overdrafts, and term loans.
The application process can be completed online, and decisions are made within 48 hours of your application.
Guaranty Trust Bank (GTBank), is one of the leading commercial banks that offer business loans range of loan products to meet the diverse financing needs of businesses.
Types of loan business loan offered in GTBank
A.GTBank Quick Credit
Quick credit is a digital loan product designed to provide financing for small businesses to meet their working capital
The loan amount ranges from N10,000 to N5 million
The repayment period of up to 6 months.
B.GTBank Max Advance
Max advance loan is designed to provide financing for salaried workers to meet their personal financial needs.
The loan amount ranges from N50,000 to N10 million,
The loan repayment period of up to 12 months.
C.GTBank Commercial Loans: This loan is designed to provide financing for businesses to meet their long-term funding needs, such as expansion or acquisitions.
The loan amount ranges from N1 million to N50 million,
The loan repayment period of up to 48 months.
D.GTBank School Fees Advance
This loan is designed to provide financing for parents and guardians to pay their children’s school fees. The loan amount ranges from N50,000 to N5 million
The loan repayment period of up to 12 months.
E.GTBank Asset Finance: This loan is designed to provide financing for businesses to purchase assets such as machinery, equipment, and vehicles.
The loan amount ranges from N1 million to N50 million,
The loan repayment period of up to 48 months.
F.GTBank SME Loans
This loan is designed to provide financing for small and medium-sized businesses to meet their working capital needs, purchase equipment, or expand their operations. The loan amount ranges from N500,000 to N50 million, with a repayment period of up to 48 months.
The specific eligibility requirements, interest rates, and application processes for each loan type may vary. It is advisable to contact GTBank or visit their website for detailed information on their business loan products
5. United Bank for Africa
United Bank for Africa is among the banks that offer business loans in a wide range, which include overdrafts, term loans, and asset finance. The application process can be completed online, and decisions are usually made within 72 hours.
United Bank for Africa (UBA), one of the leading commercial banks in Nigeria, offers a range of loan products to meet the diverse financing needs of businesses.
Types of UBA business loans
A.UBA Business Loans
This loan is designed to provide financing for businesses to meet their working capital needs, purchase equipment, or expand their operations. The loan amount ranges from N500,000 to N50 million,
The loan repayment period is up to 36 months.
B.UBA Asset Finance Loan
An asset finance loan is a loan designed to provide financing for businesses and to purchase assets such as machinery, equipment, and vehicles.
The loan amount ranges from N5 million to N500 million
The loan repayment period is up to 48 months.
C.UBA Export Finance Loan
This loan is designed to provide financing for businesses that engage in export activities.
The loan amount ranges from N1 million to N500 million,
The loan repayment period is up to 12 months.
D.UBA Agriculture Finance Loan
An agricultural finance loan is a loan designed to provide financing for businesses in the agricultural sector.
The loan amount ranges from N500,000 to N10 million
The loan repayment period is up to 12 months.
E.UBA Personal Loan
This loan is designed to finance individuals to meet their financial needs. The loan amount ranges from N50,000 to N30 million,
The loan repayment period of up to 36 months
F.UBA Credit Card Loan
This loan is designed to finance individuals to meet their financial needs.
The loan amount ranges from N50,000 to N5 million,
The repayment period of up to 36 months
6. Union Bank loan
Union Bank is included in the list of banks that offer business loans. Just like First Bank, they offer a series of loans to individuals and business owners. union bank loan focuses majorly on financing businesses to upscale their services. with Union Bank, you can obtain self-employed loans, cash-backed loans, and self-employed revolving overdrafts.
Features of the union bank loan
- Collateral required
- The maximum Tenor is 48 months
- The loan amount is dependent on the business’s cash flow
Document require for the loan
- Cashflow statement
- Customer’s request letter
- Audited Financials(if applicable)
- Proforma Invoice of an asset to be financed
- Copy of Corporate Affairs Commission (CAC) registration certificate
- Other documents will be required subject to what we are financing
Conclusion: discussing banks that offer business loans, specific eligibility requirements, interest rates, and application processes for each loan type may vary. It is advisable to contact each of the banks or visit their website for detailed information on their business loan products.