Struggling to secure a loan in Nigeria? This guide breaks down top lenders, low rates, and key requirements in 2026.
Getting a loan in Nigeria can be very difficult, especially if you’re not familiar with the requirements.
In this article, you’ll learn everything you need to know about getting a loan in Nigeria.
Types of Loans Available in Nigeria
The types of loans in Nigeria differ from one another by the terms, mode and duration of repayment.
Knowing the differences between the various types of loans can help you decide which of the loans suits your needs.
Some of the most common types of loans offered in Nigeria include:
Secured Loan
To secure this type of Loan, you need an asset. If the borrower defaults on the Loan, the lending company has a right to take the asset used as collateral.
Secured loans are commonly used when buying a vehicle, such as a car loan in Nigeria
You can usually borrow large amounts with a secured loan and at a lower interest rate.
Additionally, a secured loan can be paid over 15 years.
Unsecured Loan
Unlike a secured loan, this type of Loan does not require collateral. Thus, the interest rates are usually higher.
An unsecured loan often is a personal loan and is not secured against any asset.
Of course, you still have to pay the money back and the lender could sue you in court if necessary to get its money back.
Single payment loans
Single-payment loans allow you to borrow an amount of money and then agree to repay that amount in full at some point within a period.
Monthly payment loans
These types of loans are repaid every month for some time. The repayment dates are scheduled at the start of the Loan.
Salary advance loans
It is usually for salary earners. You borrow cash for a short period and pay it back when you receive your salary.
Documents Required for a Loan in Nigeria
The requirements for getting a loan depend on the type of Loan you’re applying for.
However, there are general requirements for getting a loan in Nigeria. These include:
A valid means of identification
It can be a National ID card, International Passport, or Driver’s License.
Proof of Income
It can be a recent salary slip, bank statements, or any other evidence of regular income.
Proof of Address
Proof of address can be found in your utility bills or tenancy agreements if you’re a tenant.
Credit History
One other major requirement is having a good credit score. It increases your chances of getting a loan approval.
However, business loans have more requirements, including:
Business registration certificate
To get a business loan, you must have a Corporate Affairs Commission (CAC) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) registration certificate.
Your business status on these platforms must also be active, and this means that you file for your annual returns.
Business Plan
You also need a detailed business proposal outlining the purpose, viability, and expected returns on the loan facility you intend to get.
Financial Statements
For existing businesses, lenders request audited financial statements from the past 1-3 years.
These include profit and loss statements, balance sheets, and cash flow records to evaluate the financial health and performance of your business.
Collateral or Security
Most Nigerian lenders require collateral, which could be land or house, equipment, vehicles, or other valuable assets.
Collateral serves as security in case of default.
Bank Statements
You need 6–12 months of recent bank statements to verify cash flow and determine repayment capacity.
It is essential for small and medium businesses and startups with a limited financial history.
Tax Clearance Certificate
A valid Tax Clearance Certificate (TCC) proves that your business complies with tax obligations. It shows that your business is credible and has financial discipline.
Banks Offering Low-Interest Loan in Nigeria
Banks are one of the financial institutions that offer loans in Nigeria.
Some of the banks offering a low-interest loan in Nigeria include:
GTBank
Through its platform, Quick Credit, GTBank offers personal loans to its customers.
As a non-collateral loan, Quick Credit provides borrowers with loans for their personal needs.
The Loan is available to salary earners as they can access the cash they need instantly and pay it back in up to 12 months.
If you bank with GTBank, you can request QuickCredit instantly by dialing *737*51*51#. This service is also available on all GTBank online and mobile banking platforms. For more information you can read this article to learn how to get a loan from GT Bank
FCMB – FastCash
First City Monument Bank (FCMB) FastCash is a convenient, paperless credit facility with no collateral required for emergencies and urgent needs. It is an instant loan, and it gives access to funds of up to N200,000 without paperwork or any form of collateral.
WEMA Bank
Personal Loan is a loan facility currently available to employees who operate a Salary Current or Savings Account with Wema Bank.
Wema Bank’s Personal Loan helps borrowers cover medical bills, purchase a car, make home improvements, give your side hustle a little boost, pay for training to improve yourself, and do so much more!
Stanbic IBTC
Stanbic IBTC also offers personal loans to its customers with zero collateral, targeted at meeting the financial needs of parents and guardians looking to pay the school fees for their children or wards in any tier of the education system in Nigeria.
In addition, it has an SME Loan, a tailored lending facility that is available to businesses.
Fidelity Bank
Fidelity Bank offers Payday Loan, an online loan to the staff of public and private organizations whose staff salary accounts are domiciled with the Bank.
It requires no documentation or any form of collateral. The Salary Account must be in Fidelity bank and be active for at least three months.
First Bank
First Bank offers FirstCredit, a product designed to provide you with a quick and simple loan to fund your transactions. The loans can be accessed from anywhere in Nigeria without visiting the Bank.
UBA Personal Loan
The United Bank for Africa (UBA) Personal Loan product is designed to support all salary earners. With this product, borrowers can cover medical bills, make home improvements, give and meet other sundry needs.
Interest Rates on Loan in Nigeria
The interest rate on loans in Nigeria varies depending on the lender, loan type, and the applicant’s credit score.
Commercial Banks, like FirstBank, UBA, and GTB, typically offer interest rates between 15% and 25% per annum for personal and business loans.
Microfinance Banks’ interest rates are higher, ranging from 20% to 40% per annum. It is because of the perceived risk of lending to individuals and micro-businesses.
However, Fintech Loan Platforms provide quick, unsecured loans with monthly interest rates ranging from 3% to 10%. Fintech platforms offer convenient options for getting an online loan in Nigeria.
The loans with the lowest interest rates are usually government-backed loans, such as the Bank of Industry (BOI).
The interest rates are more favorable, usually between 5% and 10% per annum.
Frequently Asked Questions About Loan in Nigeria
How to get urgent money in Nigeria
Which app can borrow me 50K now ?
Carbon
Fairmoney
Migo
Branch
Palmcredit
How to get 5k urgently
What is the code for Migo loan?
How much can I borrow from Migo for the first time?
Migo offers loans starting from ₦500 to a maximum of ₦500,000. The service is available across Nigeria.
The primary requirements for a Migo loan include a phone number, Bank Verification Number (BVN), and a bank account.
Conclusion
Getting a loan in Nigeria is achievable with the right knowledge and guides we’ve provided in this article. By understanding loan types, eligibility requirements, and interest rates, you can choose the best option for your needs.
Whether for personal or business purposes, ensure your documentation is in order, maintain a good credit score, and compare lenders to secure favorable terms.