Securing funding is a critical step for startups aiming to establish and expand their operations in Nigeria. As of 2024, several financial institutions and programs offer tailored loan options to support new businesses. Here are five notable business loan options for startups in Nigeria:
- LAPO Microfinance Bank – SME LoanLAPO Microfinance Bank provides SME loans specifically designed to support small and medium-scale enterprises in Nigeria. Startups can access credit facilities of up to ₦5,000,000 to expand their operations. The loan comes with an affordable interest rate and a repayment period of up to 12 months.
- Letshego Microfinance Bank – SME LoanLetshego offers SME loans to both registered and informal businesses, including startups. Loan amounts range from ₦20,000 to ₦20,000,000, with a monthly interest rate of 5% and flexible collateral requirements. This loan is suitable for various industries, including trade, manufacturing, and services.
- Bank of Industry (BOI) – Working Capital LoanThe BOI Working Capital Loan is designed to support startups by providing funds for day-to-day operations, inventory purchases, and cash flow management. The loan offers flexible terms and competitive interest rates, with a repayment period of up to 12 months. Applicants must have been in business for at least 12 months and provide necessary documentation, including bank statements and valid identification.
- Renmoney – Business LoanRenmoney offers business loans to startups with amounts ranging from ₦100,000 to ₦5,000,000. The loan features a flat monthly interest rate of 6.3% and a repayment period between 3 to 9 months. To qualify, businesses should have been operational for at least one year, with a minimum monthly revenue of ₦50,000.
- FairMoney – Business LoanFairMoney provides quick and accessible business loans to startups, with amounts ranging from ₦50,000 to ₦5,000,000. The loan has a flat monthly interest rate of 3% and a repayment period of 3 to 12 months. The application process is entirely online, and funds are disbursed within 24-48 hours upon approval. Eligibility criteria include a minimum of six months in business, valid identification, and business registration documents.
When considering these options, it’s essential to evaluate each lender’s specific requirements, interest rates, and repayment terms to determine the best fit for your startup’s financial needs.
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