Top 12 Microfinance Banks That Gives Loans Without Collateral in Nigeria

Top 12 Microfinance Banks That Gives Loans Without Collateral in Nigeria

Microfinance banks are financial institutions that provide banking services that provide loans and credit facilities to people. If you are looking for business loans without collateral, you can consider getting such loans from microfinance banks. In this post, we’ll provide you with the best microfinance banks to get loans without collateral in Nigeria.

The objective of MFBs is to alleviate poverty and increase productivity by granting loans to people to start up profitable business ventures.


One of the reasons why microfinance banks are established in Nigeria is to develop the economic-ecosphere by providing funding for Micro, Small and Medium-Scale Enterprises (MSMEs).

Unlike commercial banks, there aren’t made for people to deposit/save money and financial assets. Rather, they serve as a good source for people to get access to capital to start up a business venture.

Getting loans from commercial banks can be difficult; due to the protocol and paperwork which must be completed as a prelude to the loan application.

Also, commercial banks do not give out quick loans. If you need money urgently, you may not get instant loans from commercial banks as the bank will take time to review your application before processing your loan.

Furthermore, a lot of commercial banks will request for a form of collateral before they grant your loan application.

Its harder to get non-collateral loans from commercial banks and this is one of the challenges faced by people who are keen on getting money from them.

RELATED: How To Get Loans From Any Commercial Bank In Nigeria

Alternatively, if commercial banks fail to provide you with financial support, you can be able to get loans from microfinance banks.

Typically, many people borrow small business loans from microfinance banks. If you plan to get money from a microfinance bank, it is equally important for you to read our post on how to get quick loans from microfinance banks in Nigeria.

Microfinance banks are structurally designed to fund small and medium scale enterprises. So, if you are a small business owner, microfinance banks should be your first choice to get business loans in Nigeria.

Likewise, microfinance banks give loans at good interest rates and some of them give loans without collateral. They also have good repayment plans for you to pay back your loans with ease.

History of Microfinance Banks In Nigeria

Before the year 2005, it was difficult for Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria to get access to credit facilities, It is widely known that one of the challenges of doing business in Nigeria is the inability to get access to capital to start a business venture.

Similarly, SMEs in Nigeria were financially incapacitated, so, they set out to borrow money from a commercial bank, who rejected their application after considering them as high-risk debtors.

Therefore, most Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria had to depend on moneylenders, loanmongers, thrifts and cooperative societies to get funding for their businesses.

The fact that the Federal Government of Nigeria did not regulate the thrifts and cooperative societies meant that the finances of Micro, Small and Medium Scale Enterprises weren’t secured.

As a result, the Federal Government of Nigeria (FGN) through the Central Bank of Nigeria (CBN) organized the Microfinance Policy Framework of 2005 to provide support and assistance to micro and small entrepreneurs in Nigeria for them to get better access to business credit.

List of Microfinance Banks That Gives Loans Without Collateral

We have provided a list of the top 12 microfinance banks in Nigeria that gives you loans without collateral. You can consider going to the offices of these banks to acquire startup capital for your business.

1. AB Microfinance Bank Nigeria Limited

AB Microfinance Bank Loan

The AB Microfinance Bank is one of the most successful and oldest microfinance banks in Nigeria. They provide you with quick loans without collateral. This microfinance makes it easy for business owners and entrepreneurs in Nigeria to get access to startup capital.

Similarly, you can get up to ₦20,000,000 from the AB Microfinance Bank Loan. You don’t need to provide an audited financial statement or have a deposit or savings account before you get the AB Microfinance loan.

The repayment plan varies due to the loan plan or size of the loan. Typically, the repayment plan runs from 5 to 18 months. The Business Flexi Loan package offers loans from ₦15,000 to ₦100,000 at an interest rate of 6.6%.

2. LAPO Microfinance Bank Limited

Microfinance Banks In Nigeria

The Lift Above Poverty Organization (LAPO) is one of the reliable and trusted microfinance banks in Nigeria. They offer entrepreneurs with credit facilities, savings instruments and other financial services for them to grow their businesses.

One of the benefits of getting loans from LAPO is that they have convenient and comfortable repayment plans. Hence, you can pay back in small instalments.

Another major advantage of lending money from LAPO is the loans attract small transaction costs, they give you loans without collateral and no paperwork is required.

If you want to get the LAPO Loan, you will be asked to create an account with 10% of the amount which you intend to borrow, fill a registration form and bring 2 guarantors who would be visited by a LAPO liaison officer.

Typically, LAPO loans have a repayment plan of up to 8 months and a 2.2% interest rate.

3. Ren Money MFB Limited

Microfinance Banks That Gives Loans Without Collateral in Nigeria

Ren Money is one of the loan companies that give quick loans without collateral. They provide you with instant loans, but their loan conditions and requirements are a bit strict.

They were founded in 2012 with the headquarters in Lagos; it has other branches in Surulere, Apapa, Ikota, Lagos Island and Ikeja. They offer non-collateral loans of up to 4 million naira fort a period of 3 to 9 months.

One of the requirements of the loan is for you to provide 3 sureties who are workers in the Nigerian banking sector. If you meet their requirements, you will be able to obtain loans without collateral.

4. Accion Microfinance Bank

list of microfinance banks in nigeria

Accion is another microfinance bank that will give you loans without collateral in Nigeria. Simply visit their head office to speak with their staffs, officers or representatives about getting a loan.

The Accion Microfinance Bank head office is located on the 4th Floor of Elizate Plaza, No 322, Ikorodu Road, Anthony, Lagos.

They also have offices in Ketu, Agric Ikorodu, Ikorodu, Agege, Isolo, Aguda, Ojodu, Alaba, Akonwonjo, Ejigbo, Ajegungle, Orile-Iganmu, Lagos Island, Ikotun, Ikeja, Port-Harcourt and other areas in Nigeria.

Every loan application requires a surety or guarantor who is between 28 to 59 years of age. The guarantor will have the capacity to pay back the loan if the customer is unable to repay.

Consequently, you can get a loan within 72 hours after your application. Their loans come with decent interest rates. loans Surely, your face will be beaming with smiles after getting a loan from the Accion Microfinance Bank.

5. FBN Microfinance Bank

microfinance banks in nigeria

The FBN Microfinance bank is a subsidiary and sister company of the First Bank of Nigeria Ltd. This financial institution is committed to supporting SMEs in Nigeria.

They were established in March 2008 and since then, they have remained one of the leading microfinance banks in Nigeria.

They are now known as Letshego Financial services with offices at Nyanya, Ikotun, Alagbado, Agege, Agegunle, Okota, Tejuosho, Orile-Coker, Ogba, Ikeja.

Their head office is located at No 305, Herbert Macauley Road, Yaba, Lagos and they are also available at all First Bank branches in Nigeria.

6. E-Barclays Microfinance Bank

Microfinance Banks That Gives Loans Without Collateral in Nigeria

Barclays Bank is one of the best banks in the UK. This international financial institution is a one-time sponsor of the popular English Premier League (EPL).

It was incorporated as a limited liability company on the 28th of April 2008 and on the 6th of August 2008. It has the approval of the Central Bank of Nigeria (CBN) to run microfinance business in Nigeria.

The E-Barclays Microfinance Bank is a subsidiary of the Barclays Bank. They provide Nigerians with loans without collateral. The micro-loan ranges from N50,000.00 to N500,000.00 and it is given to individuals and groups.

The Payroll loans is a collateral-free loan which is designed for civil servants who need money to fund an immediate financial need.

7. Broadview Microfinance Bank

microfinance banks that offers loan without collateral

Broadview Microfinance bank gives out loans without collateral. Their loan requirements and conditions are not really complicated and strict as other loan companies.

They have different loan products such as;

  • Agric loans.
  • Target Loan Account.
  • Auto Loan.
  • LPO Financing Loan.
  • Super Loan.Group Loan.
  • Traders Loan.
  • Entrepreneur Loan.
  • Salary Advancement Loan.
  • Investment Loan.
  • Advance Daily loan.
  • Current Account Loan.
  • School Fees Loan.

They have good interest rates and loan repayment plans. Their headquarters is located at 52, Odunlami Street, Lagos.

8. Providence Microfinance Bank

microfinance banks that offers loan without collateral in Nigeria

They give out loans when they are guaranteed of getting their money back. Giving loans to people is one of the financial services offered by the Providence Microfinance Bank.

Providence Microfinance Bank Limited is approved by the Central Bank of Nigeria and they provide loans to small businesses and entrepreneurs lacking sufficient capital for their business.

However, their loan requirements appear strict. However, you can get a loan from them if you are able to meet up with their requirements.

Apart from loans, they offer other banking and financial services such as savings, insurance, payment services, fund transfers and other high-quality financial services.

9. Crowned Eagle Microfinance Bank Limited

microfinance banks that offers loan without collateral

They offer varieties of retail banking services such as consumer loans, letters of credit, cash management, demand, savings and cheque accounts.

This microfinance bank has obtained a license from the Central Bank of Nigeria. It is located in a metropolitan area of Lagos state, the head office is at 132 Isawo road, Ikorodu, Lagos.

The Eagle Microfinance Bank is willing to borrow money to those in need of it. If you have a pressing need for capital to start up a business, you can get it Eagle Microfinance Bank.

10 JesseField Microfinance Bank

microfinance banks in Nigeria that offers loan without collateral

JesseField Microfinance Bank has a reputation of giving out unsecured loans to people, hence, you can get a loan from them without any form of collateral.

Typically, they give out instant business loans to people within 24 hours after your request. You can only get their loan if you meet its requirements.

They provide loans for personal financial needs and also provide businessmen with capital to kickstart small and medium scale business enterprises.

Some of their loan packages are;

  • Group Loan.
  • SME Business Loan.
  • SME Personal Loan.
  • SME School Support.
  • SME Trader Relief Scheme.
  • MOCUF (Monthly Clean Up Facility).
  • Set-Up Loan.

JesseField Microfinance bank gives out loans starting from ₦40,000 up to ₦10,000,000 or more. The head office can be found at No 15, Omotayo Ojo str, Allen Avenue, Ikeja, Lagos.

11. Mainstreet Microfinance Bank Limited

best microfinance banks in nigeria

Mainstreet Microfinance Bank is a sister company of the Mainstreet Bank. They were previously known as Afribank microfinance bank.

In 2009, they received a license from the Central Bank of Nigeria to provide micro-financial services to Nigerians.

This microfinance bank offers individuals, as well as business owners, access to funds with flexible repayment structure and competitive interest rates. Their loan products include;

  • Payee Loan.
  • Mainstreet Enterprise Loan.
  • Mainstreet Equip Loan Special.
  • Mainstreet Special Edu Finance.

Loan applicants must have a means of identification (International passport, Voters card, Driver’s license or a National Identification card. Also, they must reside in an area close to the bank, preferably within Lagos state.

You will have to visit the Mainstreet Microfinance Bank office at No 94, Broad Street, Lagos Island to get a loan.

12. Olive Microfinance Bank Limited

Microfinance Banks That Gives Loans Without Collateral in Nigeria

Olive Microfinance provides business loans without collateral. You must have a reason to get the loan and you will have to tell them the purpose of your loan.

They do not give loans for frivolities, so, it is equally important for you to document a business plan before approaching them for loans.

Olive Microfinance Bank is a licensed microfinance bank in Nigeria, they are approved by the Central Bank of Nigeria.

It was incorporated on October 25, 2007, as a limited liability company and on January 15 2008, they were approved to offer microfinance services to Nigerians.

They operate as a microfinance bank in Lagos state; their head office is located at 150 Obafemi Awolowo way, Ikeja. They also have other branches within Lagos state.

Bottom Line

Conclusively, this is all you need to know about the microfinance banks in Nigeria that offer loan without collateral. If you are looking for non-collateral business loans, you can look out for any of these banks within your location and get a loan today.

About the author

Nwawulu Gracious Zara

Nwawulu Gracious Zara is the Editor in Chief at
On this blog, I provide business and publish profitable business ventures that can generate income for you.
As an entrepreneur, he has helped to build profitable online businesses for people and also provided solutions to business problems.
Zara is on a quest to help people build wealth and secure financial security and independence.

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