Everybody knows that salary earners stand a better chance of obtaining loans from banks and other financial institutions in Nigeria. This is because of the security that comes with having a consistent source of earnings each month. Although this limitation greatly benefits salary earners in Nigeria, entrepreneurs are left out since their earnings are not consistent, especially when their businesses are still growing. For this reason, entrepreneurs have to consider alternatives available for them to obtain loans for business use. If you are an entrepreneur seeking to obtain loans in Nigeria without salary account, read through this guide to see details about other alternatives that you can explore.
Considerations and Cautions to Note Before Taking Out a Loan Without Salary Account
Before we list the options that offer hope for the financial inclusion of entrepreneurs in Nigeria, you should take note of some things before borrowing a loan. Below, we’ve listed out the key considerations you should note before taking a loan:
1. Interest Rates
Loans without salary accounts usually carry higher interest rates than payday loans due to the perceived increased risk. You must carefully compare interest rates and loan terms before deciding to commit to any loan.
2. Borrowing Responsibly
Only borrow an amount that you can realistically pay back without facing any trouble. Overborrowing can lead you to a debt trap, which eventually makes your financial situation worse.
3. Loan Terms
You also need to understand the reimbursement schedule, penalties for late payments, as well as any hidden fees associated with the loan you want to obtain.
4. Beware of Scams
Unfortunately, Nigeria has a high rate of predatory lenders and scams targeting people seeking loans. Hence, you must be cautious of platforms that have hidden fees, offer unrealistic promises, and give ambiguous terms.
5. Check your credit score
Your credit score greatly impacts your loan terms and interest rates. So you must ensure that you are creditworthy and not indebted to any bank or company before trying to take out a loan. You can obtain a credit report from your bank and address any flaws before applying.
6. Shop around for the best rates
Compare the interest rates, fees, as well as repayment terms from different lenders and pick the most suitable offer for you based on your current needs.
7. Consider alternatives
You should also try to explore other options if they suit you. Alternatives like personal savings, credit cards, or even family loans may be better than online lenders.
Best Ways To Obtain Loans in Nigeria Without Salary Account
If you are considering taking loans in Nigeria without salary account, then it may be difficult to get one from traditional Nigerian banks. Nonetheless, there are other alternatives you can explore. Here are some other promising options you can explore:
1. Digital Lending Apps
Leveraging the power of 21st-century technology, companies have been able to develop mobile apps to offer you quick and hassle-free loans. The best part is that this kind of loan generally doesn’t require a salary account, guarantor, or even collateral. Nonetheless, digital lending apps generally require you to provide basic details of yourself such as your full name, phone number, email address, BVN, etc. Subsequently, you will be learning about some top mobile apps that you can borrow loans in Nigeria without salary account.
2. Peer-to-Peer (P2P) Lending Platforms
Peer-to-Peer (P2P) online platforms help to connect borrowers directly with prospective lenders, bypassing conventional banks and other financial institutions. Borrowers only need to post loan requests, delineating their needs and repayment capacities, while lenders just have to browse through the list of borrowers available and invest in people they deem worthy. Platforms like KiaKia, AjoBox, and P2Vest are good examples of P2P lending platforms that provide convenient access to a broader pool of lenders. These platforms generally have less stringent requirements than traditional banks.
3. Microfinance Banks (MBs)
Microfinance Banks are financial institutions that cater specifically to the underbanked populations in Nigeria, offering smaller amounts of loans with less stringent conditions and very flexible repayment terms. Many MBs operate in local communities, demanding only minimal documentation and concentrating on alternative credit assessments which are based on business activities or social networks. Some of the most popular Microfinance Banks in Nigeria include LAPO Microfinance Bank, ACCION Microfinance Bank, Fortis MFB, FINCOM Microfinance Bank.
5. Asset-Based Loans
Asset-based loans are loans reserved for individuals with very valuable assets, such as motorcycles, land, or electronics. Any of these valuable assets can be used as collateral for securing this kind of loan. Some commercial banks and private lenders in Nigeria provide asset-based loans to people in need, however, interest rates can be very high. Hence, you must carefully weigh the risks and benefits of this kind of loan before pledging valuable assets.
Top Digital Loans in Nigeria Without Salary Account
Now that we’ve listed the options you can explore if you want to borrow loans in Nigeria without a salary account, here’s a list of some of the best digital lenders in Nigeria.
1. Branch
Branch is one of the leading Fintech companies in Nigeria that offers quick loans in very straightforward steps. Besides the loan service, this platform also provides basic financial services, such as instant transfer, bill payments, airtime purchases, etc
Branch currently has offices in some of the major cities in the world, such as Lagos, Nairobi Mumbai, and San Francisco.
You do not have to be a salary earner to be eligible for a Branch loan. The platform just needs your full name, phone number, bank account number, Facebook account, and BVN to verify your details. Once your details are verified, the platform will offer you a loan based on your creditworthiness. The sizes of loans offered by Branch range from N2,000 to N500,000. If you pay back loans as scheduled, your borrowing limit will increase.
2. RenMoney
Renmoney is a platform that was founded in 2012 and functions with a microfinance banking license in Nigeria. This fintech platform combines both traditional and alternative data sources via statistically driven models and leverages technology to provide convenient loans, savings, deposits and banking services to every Nigerian. When it comes to obtaining loans in Nigeria without salary account, RenMoney is one of the platforms that you can trust. Here are the two types of loans you can get from RenMoney:
- Personal loans: RenMoney Personal loan product offers you up to 6 Million Naira for you to pay back within 1 to 24 months.
- Business loans: RenMoney business loan product offers loan amounts within the range of 1 million to 15 Million Naira. The duration for this loan varies between 1 to 24 months depending on the loan amount you obtain.
3. FastCash
FastCash, a service by FCMB, is another reasonable service through which non-salary earners can obtain loans for either business or personal use. FCMB FastCash is a very fast, convenient and paperless loan facility with no collateral or guarantor required.
To get access to this package, all you have to do is dial the USSD code *329*11# on your smartphone and you will be given a loan based on your creditworthiness. With this service, you can get up to N200,000 in 10 minutes, as long as you have an account domiciled with FCMB.
4. Carbon
Carbon is a reputable fintech service in Nigeria that allows you to access quick loans in Nigeria without salary account, guarantor, or even collateral. Also, this platform allows you to transfer funds, pay bills, buy airtime, and even save money with reasonable interest.
The maximum loan amount you can obtain from Carbon is N1,000,000. Usually, you will be eligible for a small amount of loan at first, then your loan limit will increase if you repay the loan you took on time. The loan duration on this platform varies between 1 to 12 months depending on the amount of loan you borrow.
5. KiaKia.com
Kiakia loan is one of Nigeria’s most reputable peer-to-peer loan platforms that cater to both salary earners and non-salary earners. Essentially, this platform helps Nigerians access personal and business loans very fast and conveniently. What KiaKia does is connect you with potential lenders who can offer you loans to repay at a specific date.
You can obtain up to 500,000 Naira loan from this platform, with tenor ranging between 1 to 12 months. Ensure that you pay back your loan to the lender on or before the due date to make you eligible to receive a higher amount.
6. Specta
Specta is a quick loan product provided by Sterling Bank. You can get a personal loan from Specta if you are self-employed, a business owner, a trader, or a professional so it doesn’t matter if you are not a salary earner. As long as you have an active account domiciled in Sterling Bank or any other Nigerian bank, you are eligible for this offer.
Specta can provide you with a personal loan ranging between 100,000 Naira to N2 million Naira if you don’t belong to a Sterling Community. However, if you belong to a Sterling community and your organization has been onboarded on Specta, you can access a loan of up to 5,000,000 million.
The loan tenor for people who don’t belong to the Specta community varies between 1 to 12 months, while people who belong to the Specta community can access loans with a tenor of up to 36 months.
7. Fair Money
FairMoney is a fintech platform authorized to operate as an online lender in Nigeria. This platform not only offers loans to individuals but also provides transfer services, bill payments, as well as airtime purchase services.
It is possible to apply for a FairMoney loan even if they are not salaried, as their loans are collateral and guarantor-free. As long as you have an active bank account and BVN, you can get a loan from the FairMoney app.
What makes FairMoney unique from other platforms is its speed of delivery. The amount of loan you request will be disbursed in 15 minutes or less. Also, the flexibility of this platform is another forte to commend, as borrowers can pay back their loans on or before their due date with a lesser interest rate.
FairMoney loan offers vary between N1,500 to N500,000 for a loan tenor within one to three months, depending on the loan amount you obtain. The better your lending history on FairMoney, the greater the amount of loan you can access and the longer the tenor!
8. Grofin
Grofin is a financial service provider that is well known for providing fast and reliable loans for business owners. So if you need a loan to grow your existing business, then you can apply for it from this platform.
Grofin has a proven track record of assisting business owners to start or grow their successful businesses. Currently, this company has offices across numerous countries in Africa, including Nigeria. To qualify for a loan from Grofin, you need to have an already established business that should have been operating for at least 2 years and has a yearly turnover of 1.5 times the amount of loan you want to borrow.
9. SMEDAN
SMEDAN, short for Small and Medium Enterprises Development Agency of Nigeria, was founded by the SMEDAN Act of 2003 to facilitate the growth and development of the MSME sector of the Economy. This Agency places itself as a one-stop-shop for the development of all MSMEs in Nigeria.
If you are non-salaried but own a small business that needs funding, you can try applying for a SMEDAN loan or grant that caters for small businesses. Just visit the official SMEDAN website and go through the list of requirements. If you meet the stipulated requirements you can submit your application and expect to receive a loan.
10. Quickcheck
Quick Check is also another fintech platform where you can access loans in Nigeria without salary accounts. If you have a good credit score, you are eligible to take out a loan from this platform and can access the service anytime and anywhere. With this platform, you can get up to 3 million Naira in just a few minutes with a loan tenor varying between 3 to 12 months.
As a first-time user of QuickCheck, you can access loans of up to 10,000 Naira for a tenor of 30 days. Note that your loan limit can increase if you pay back your loans on time, as it builds your credibility as a borrower.
11. Aella Credit
If you need loans in Nigeria without salary account, the Aella Credit platform has got you covered. Essentially, this app can give you access to quick loans all at the tip of your fingers. Aella App also makes it very easy for you to get insurance, make payments, and invest in assets. The loan amount for this app ranges between N1,500 to N1,000,000, with a repayment tenor ranging between 1 to 12 months.
12. Migo
Migo, formerly called KwikMoney, is a lending platform that provides personal loans to Nigerians with amounts ranging between N2,500 to as high as N500,000. The tenor for loans obtained from this platform lasts between 1 to 6 months (180 days) and varies depending on the amount of loan you received. Usually, the higher your loan amount, the higher the loan tenor. However, first-time users will not be able to access high amounts of loans until they build their credibility on the platform.
13. BlockaCash
One of the best lending platforms that makes access to loans easy and hassle-free is BlockaCash. With this app, you escape long queues, paperwork and too much waiting time. All you need to access loans is your smartphone and the Blocka Cash mobile app!
Although the financial industry in Nigeria is blessed with numerous loan apps, the platforms listed above are some of the most popular options among the rest.
Tips for Borrowing Successfully from Online Lenders
Before you consider borrowing from online lenders, here are a few tips that can guide you through the process:
- Always maintain a good repayment history on all your previous loans to boost your credit score and increase your eligibility for accessing higher loan amounts.
- If you want to boost your creditworthiness, ensure that you use the lending app regularly for other functionalities, such as money transfers, bill payments, and airtime purchases.
- Borrow responsibly and make sure that you only borrow an amount of loan that you can conveniently pay back within the stipulated timeframe.
How Can I Borrow Loans in Nigeria Without Salary Account?
One of the fastest and most convenient ways to borrow loans in Nigeria without salary account is through online lending apps. Now that we’ve provided you with some of the best lending apps where you can borrow loans without a salary account, you should learn how to borrow from these apps. Follow the steps below to borrow from any loan app in Nigeria:
Step 1: Sign Up or Log Into the app
- First, start by downloading any loan app of your choice from Google PlayStore or AppStore.
- Open the lending app and create an account for yourself using your phone number, email address or Facebook account.
- If you already have an existing account, just log in using your credentials.
Step 2: Verify Your Details
- Input your BVN, phone number and bank account number to link the account to your banking profile.
- The digital lender will ask for access to your phone data. This will help them to assess your creditworthiness. You can decide to allow or deny them access.
Step 3: Apply for a Loan
- Once the platform assesses your credit score based on the information you provide, navigate to the “Loans” section you find in the app.
- Input your desired loan amount and reimbursement period.
- Review all the loan terms as well as the interest rates carefully.
- Tap on the “Apply” on the screen and follow the prompt.
Step 4: Get Your Loan
- If your application is approved, your loan will be credited to your bank account within a few minutes.
What Should I Know Before Assessing a Loan
Securing a loan is just a part of your financial journey. Financial literacy and responsible borrowing are also very important for sustainable success. Here are a few key tips:
- Borrow only what you need: Resist the urge to borrow more money than you need. Carefully examine your needs and borrow just the amount required to fulfil them.
- Read through and understand the loan terms and conditions: Take your time to read and understand the loan agreements. Make sure you thoroughly read through and understand the loan terms and conditions, such as the interest rates, repayment schedules, tenor, and late fees.
- Create a repayment plan: Create a practical plan for paying back your loan on time. Ensure that you prioritize loan payments in your overall budget to avoid amassing unnecessary debt.
- Build your credit history: Consistent and timely repayment of your loan can contribute to building credibility on the platform and a positive credit history. This automatically opens doors to better loan options in the future.
- Seek financial education: Fully equip yourself with the knowledge required to make informed financial decisions. You can speak to a financial expert, consult online resources, attend workshops, and join community programmes to effectively boost your financial management skills.
Alternative Solutions to Loans in Nigeria
Before resorting to taking loans, there are other alternative solutions you can consider to address your pressing financial needs. These include:
- Negotiating payment plans with creditors: Open communication with vendors around you can lead to flexible payment plans for things you want to purchase. This reduces the need for loans.
- Seeking financial aid from family or friends: Although borrowing from family and friends comes with its unique dynamics, it is still a viable option in some situations.
- Building savings: Establishing a good savings habit, even if you are only saving small amounts. Saving can create a protector for future financial needs, which will reduce the reliance on loans.
Eligibility and Requirements For Obtaining Loans in Nigeria Without Salary Account
Here is a list of some factors that can boost your eligibility for loans in Nigeria without a salary account:
- Regular business income: If you are a business owner, ensure that you provide precise documentation of your revenue stream, such as your bank statements or tax returns.
- Strong credit history: Demonstrating trustworthy past borrowing behaviour, even without having a salary account, can help to increase your creditworthiness.
- Guarantors: Having a guarantor who has a good credit history may increase your likelihood of loan approval. However, guarantors are not required to borrow loans from digital lenders.
- Positive digital footprint: Building a robust online presence with very active social media accounts can help to portray your financial stability to potential lenders.
Which App Allows Me to Borrow Money Instantly?
Most loan apps in Nigeria allow you to borrow money instantly without the need for a guarantor or collateral. Some of the most notable loan apps that give you instant loans are:
- FairMoney
- PalmCredit
- Branch
- Carbon
- RenMoney
- Migo loan
- Aella Credit
- QuickCheck
Final Thoughts
With the advent of online lending platforms, it has become very easy to obtain loans in Nigeria without salary account. All you need to have is an active bank account and BVN to apply for loans from these online lenders. Nonetheless, if you don’t fancy obtaining loans from online lending platforms, there are other alternatives that you can explore. You can decide to borrow a loan from any authorized Microfinance Bank around you or from your bank via their asset-based loan service (if you have a tangible asset). Lastly, ensure that you don’t borrow an amount that will be difficult for you to pay back, as there are dire consequences of late repayments of loans.
