One of the major problems affecting the growth of businesses in Nigeria is the availability and easy accessibility of business loan. I have seen lots of young people brimming with ideas, but they lack the financial capacity to bring their business ideas into reality, due to lack of funds.
The government, has, however, created avenues, to make grants available. The government, for instance, has made efforts to create avenues for grants to be made accessible, but those grants are primarily open to companies in the health sector, or, science and technology, leaving only charity organizations to help create avenues where young entrepreneurs in other fields can be funded.
Recently, some privately owned companies that give out loans without collateral are springing up in the country and we will be looking at them below.
Renmoney is a consumer finance organization, founded in Lagos in 2012. Renmoney has branches scattered across Lagos State. It has presence in Ikeja, Lagos Island, Apapa and Surulere.
With Renmoney, customers could have access to as much as N4million in loans and payback within 3 to 9 Months.
As long as one can provide a viable source of income, a functioning bank account and a valid means of identification, such a person is qualified to apply for and access a business loan. It is easy, fast and efficient to access.
Individuals can apply for a loan of, between, N3,000 and N150,000, without a face-to-face meeting, lengthy application processes, collateral or paperwork, as a first-time user. The earlier you pay back, the easier you have access to a large amount of business loan.
According to Matthew Flannery, CEO of Branch, “more than 75% of customers use Branch loans to help start or grow their businesses, or, meet financial obligations”.
Aella credit is based in Lagos State and offers up to N200,000 in loan to first-time customers.
According to Akin Jones, the Founder of Aella Credit, “the major aim of Aella Credit, is to enable customers apply for loans online, instantly and in a matter of minutes”. Borrowers are rewarded and encouraged to request for more loans.
The platform offers loan credit of up to N500,000, with no collateral. Once an individual applies and the application is approved, funds are typically received within 1 to 3 business days.
On a final note, one needs to critically study and assess the terms and conditions, (T&C), of a loan company, before pitching in their application. Some other things to consider include the interest rate chargeable on the loan and its payback period.