Top Reliable Business Loan Providers In Nigeria: Funding Options For Entrepreneurs And Startups In Nigeria (2023)

Do you want to get a loan or just want to know the number of “top reliable business loan providers in Nigeria which is termed the funding options for entrepreneurs and startups in Nigeria?

If possibly you answer is yes,’ then I’d tell you you are on the right page already.

This is a post curated to let you and other readers have the understanding or become knowledgeable of the top reliable loan providers in Nigeria: Funding options for entrepreneurs and startups in Nigeria.

I’m sure you must have known Nigeria is the largest economy in Africa, with a population of over 200 million people, a thriving entrepreneurial spirit, and a growing middle class.

However, one of the biggest challenges facing entrepreneurs and startups in Nigeria is access to funding. 

Yes, many small and medium-sized enterprises (SMEs) struggle to secure financing to grow their businesses, and traditional lending institutions are often reluctant to provide loans to these businesses due to the perceived high risk. 

This article will provide a comprehensive guide to the top reliable business loan providers in Nigeria, including funding options for entrepreneurs and startups in Nigeria.

Let’s quickly dive in!

List of Top Reliable Business Loan Providers In NigeriaFor Entrepreneurs And Startups In Nigeria

Below is the list of the top reliable loan providers in Nigeria: Funding options for entrepreneurs and startups in Nigeria 2023:

1. Development Bank of Nigeria (DBN)

The Development Bank of Nigeria (DBN) is a national development finance institution established in 2017 to provide funding and credit guarantees to eligible financial intermediaries for onward lending to MSMEs.

 DBN an acronym for “Development Bank Of Nigeria” offers long-term loans of up to 10 years to eligible financial intermediaries, including commercial banks, microfinance banks, and other specialized financial institutions. 

These intermediaries then disburse the funds to MSMEs at a competitive interest rate.

DBN has reportedly partnered with over 27 financial institutions in Nigeria with the aim to provide funding to MSMEs, and the bank’s loans can be used for working capital, asset acquisition, and infrastructure financing.

The bank’s interest rate ranges from 8% to 15%, depending on the risk profile of the borrower.

2. Bank of Industry (BOI)

Another amongst the list of top reliable loan providers in Nigeria: Funding options for entrepreneurs and startups in Nigeria 2023 is the “Bank of Industry” (BOI).

It is a Nigeria’s oldest and largest development finance institution. 

The bank provides funding to MSMEs in Nigeria for working capital, asset acquisition, and infrastructure financing. BOI offers a range of loan products, including microcredit, SME loans, and project financing.

The bank’s interest rate ranges from 5% to 10%, depending on the risk profile of the borrower.

BOI requires borrowers to provide collateral for loans, and the bank also offers a range of advisory services to help businesses improve their operations and access funding.

3. GroFin

GroFin is a private development finance institution that provides funding to small and growing businesses in Africa and the Middle East. 

The company’s focus is on providing financing to businesses that have a positive social and economic impact in their communities.

GroFin offers debt and equity financing to businesses in Nigeria and other African countries, with loan amounts ranging from $100,000 to $1.5 million. 

The company’s loan terms range from 3 to 7 years, and its interest rates range from 12% to 24%.

4. LAPO Microfinance Bank

LAPO Microfinance Bank is yet one of the top reliable loan providers in Nigeria: Funding options for entrepreneurs and startups in Nigeria 2023.

It is known as one of the largest microfinance banks in Nigeria, with a focus on providing funding to low-income individuals and small businesses. 

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The bank offers a range of loan products, including microcredit, SME loans, and agricultural financing.

LAPO’s interest rates range from 6% to 10%.

The bank requires borrowers to provide collateral for loans and guarantors, and its loan terms range from 6 to 24 months.

5. NIRSAL Microfinance Bank

NIRSAL Microfinance Bank is a subsidiary of the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), which was established in 2011 to address the challenges facing agricultural lending in Nigeria.

The bank provides funding to small and medium-sized enterprises (SMEs) and agribusinesses in Nigeria, with a focus on promoting economic growth and development.

NIRSAL Microfinance Bank offers a range of loan products, including agricultural financing, working capital loans, and asset acquisition financing, when compared to the LAPO microfinance bank, the interest rate is on the high side as the bank interest rates range from 9% to 19%, though it depends on the risk profile of the borrower.

NIRSAL also provides technical assistance and advisory services to help businesses improve their operations and access financing.

6. African Development Bank (AfDB)

The African Development Bank (AfDB) is a multilateral development finance institution that provides funding and technical assistance to African countries. 

The bank has a focus on promoting economic growth and development in Africa through investments in infrastructure, agriculture, and other sectors.

AfDB provides financing to SMEs in Nigeria through its private sector lending arm, the African Development Bank Group (AfDB Group). 

The bank offers a range of loan products, including working capital loans, trade finance, and project financing.

The bank’s interest rates and loan terms vary depending on the specific loan product and the risk profile of the borrower.

7. Sterling Bank Plc

Sterling Bank Plc is a commercial bank in Nigeria which is not excluded from the list of top reliable loan providers in Nigeria: Funding options for entrepreneurs and startups in Nigeria 2023.

They provides financing to SMEs and corporate clients.

The bank offers a range of loan products, including working capital loans, asset acquisition financing, and trade finance.

Sterling Bank’s interest rates range from 9% to 20%.The bank requires borrowers to provide collateral for loans, and its loan terms range from 3 to 48 months.

Frequently Asked Questions On Top Reliable Business Loan Providers in Nigeria: Funding Options for Entrepreneurs and Startups in Nigeria. 

Below are the essential questions regarding the topic- Top Reliable Business Loan Providers in Nigeria: Funding Options for Entrepreneurs and Startups in Nigeria:

What types of businesses are eligible for business loans in Nigeria?

Most business loan providers in Nigeria offer financing to small and medium-sized enterprises (SMEs) and startups. However, eligibility criteria is likely to vary depending on the lender and the specific loan product.

What are the collateral requirements for business loans in Nigeria?

Collateral requirements for business loans in Nigeria vary depending on the lender and the specific loan product. 

However, most lenders require borrowers to provide collateral, such as property or equipment, to secure the loan.

How long does it take to receive funding from business loan providers in Nigeria?

The time it takes to receive funding from business loan providers in Nigeria varies depending on the lender and the specific loan product. However, some lenders can provide funding within a few days to a few weeks.

What types of loan products do business loan providers in Nigeria offer?

Business loan providers in Nigeria offer a range of loan products, including working capital loans, asset acquisition financing, trade finance, and project financing. Loan terms and interest rates vary depending on the specific product and lender.