In the past, getting a loan required some form of pledge as a guarantee that the person borrowing would repay the loan. However, due to the high demand for loans without collateral on both banking and non-banking institutions, this service had to be rolled out, and now it is common to be able to borrow up to millions of naira without the need for collateral. The providers of these loans can be broadly divided into banking and non-banking institutions and will be discussed under 5 categories:
Prior to now it was difficult getting loans without collateral from commercial banks. Perhaps, due to the influx of financial institutions offering unsecured loans, banks had to consider it. Some banks offering such loans include Sterling Bank, WemaBank, Guaranty Trust Bank and Jaiz Bank to mention a few.
Backed by the Central Bank of Nigeria, banks like the Bank of Agriculture, Development Bank of Nigeria and the Bank of Industry offer loans without collateral in some cases.
MOBILE LOAN APPS:
These apps have to be the game changers in the Nigerian financial market. It was with their services of unsecured loans that banks had to relax their demand for collateral. Mobile apps like FairMoney and PalmCredit have been consistently providing fast loan services in this aspect.
Here, it appears the most reliable source is Quickteller. But if you are looking for a loan exceeding ₦10,000, they might not be the right place for you. Also, repayment is within 14 days.
CREDIT CARD FACILITIES:
Although banks like Standard Chartered Bank and Access Bank have been said to issue credit cards, it is not so pronounced. In Nigeria, it may appear that O3 Capital (the company behind O3 Cards) operates the best credit card facility offering loans without security to users. Being a credit card, the money withdrawn or used to make a purchase will have to be repaid at a later date while interest is charged.
The options of cards issued by O3 Capital are friendly and convenient.
Interested persons are availed the opportunity to select from a credit card type of their choice — Classic Credit Card with a credit limit of ₦500,000, Platinum Credit Card with a credit limit of ₦1,000,000, and Prestige Credit Card with a credit limit of ₦1,500,000, all of which are offered without collateral and are accepted nationwide and without any bank account restriction.