Getting a Soft Loan in Nigeria

The number of astounding business ideas that are being stifled in this country is baffling to say the least.

We have talked at length of many multi-million naira businesses such as plantain plantation business and many more, but without the required finance, you really can’t venture into any of these businesses. #How to get a soft loan in Nigeria without collateral.

soft loan nigeria

In view of the foregoing, we decided to bring you an article that shows you how and where you can easily acquire soft loans in Nigeria without Collateral.

Soft loans are loans that do not require so much interest. Soft loans are usually offered by the government or Multi-billionaires and they usually do not need collateral to access. Below are a few ways you can get soft loans in Nigeria.

Instant loan mobile application

Mobile loan applications have become very popular in Nigeria in the last three years, and for great reason. These loan applications have totally revolutionised the entire process of borrowing. You don’t even have to file paperwork and participate in the stringent application process that banks subject loan applicants to. These Loan apps allow you to borrow monies or loan cash without paper. They employ innovative technological integration and interfaces. They will give you an instant loan if you meet their criteria.

We did an analysis of the best loan apps in this article: Top 12 Loan Apps in Nigeria for Both Business and Personal Purposes (2021 updates)

Here’s why loan apps are the best platform to get soft loans in Nigeria:

  • Instant approval With loan apps, you don’t have to wait for days or weeks for your loan to be approved. Most loan apps use artificial intelligence and some other risk-assessment algorithms to quickly review your creditworthiness in minutes. This means you will get a loan within minutes.
  • Online verification Remember those days when bank officials will accompany you to ascertain the value of your properties or collaterals? With loan apps, these incidents are in the pasts. Loan apps have digitalised the entire verification process. This means you will only need your BVN and account number and your verification process will be done in seconds.
  • Flexible tenures and loan amounts.

Look for business angels

Business angels are billionaires or multi-millionaires who are willing to invest in small start-ups and other legitimate businesses.

A business angel could be a relative or very wealthy person who is sold on your idea and would like to see you succeed. I won’t deceive you here, just as it is almost impossible to see a heavenly angel, so also it is, to find a business angel.

But I can beat my chest and tell you that a number of thriving businesses in Nigeria owe their initial start-up capital to business angels. If you need soft loans without collateral, I’ll suggest you start looking for business angels, and when you find one, ensure you present your case well.

Join a corporative society

I know of at least 15 thriving businesses who started their business from the soft loans they got from corporative societies and built these businesses into becoming money-spinning ventures.

All you need to do is research about corporative societies and join one close to you that seems reasonable. After some time, you can then request for a loan.

Corporative societies can deal with you worse than banks if you dare try to chop their money so be careful. Work hard and payback when your loan is due.

Talk to MFBs

So as not to sound too cliché, Microfinance banks (MFBs) might not readily give you a loan, but they are still a better option when compared to new generation banks. Microfinance banks have been known to give soft loans with no collateral to Nigerians who own account with them and have a valid business idea with no capital to startup.

If you find a good and reliable Micro Finance bank to bank with, they can give you a loan for your business when you need one.

Join local loan schemes (Adashé)

They call it Adashé, or ‘Contribution’, this can be a source for a soft loan that does not require collateral.

What they do is, every member contributes a daily, weekly or monthly amount of money then at the end of the month or year, a loan is given to a member. The procedure continues until everyone has been given a loan.

Some people might tell you that Adashé is a fraud, and those people sometimes lose their money, but I’ll tell you that it’s better to take a risk than taking none at all.

I’ve seen people get loans from this loan scheme and are currently doing well in business.

Federal government agencies

The federal government of Nigeria has various agencies who give out soft non-collateral loans to Nigerians with solid business ideas and entrepreneurship skills.

The ministry of Agriculture gives soft loans to farmers, while other ministries also give loans sometimes, you just need to keep searching and asking questions.

Also See: Business Ideas for the Unemployed


Dear reader, I won’t lie to you, getting a soft loan without collateral in this country is as difficult as cracking a coconut with an egg, but I can assure you that with due diligence, perseverance and prayers you will surely get a soft loan.

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