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How To Get Loan Without Collateral In Nigeria 

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loan without collateral

How To Get Loan Without Collateral In Nigeria 

loan without collateral

Are seeking to raise money for a project but find it difficult accessing loan without collateral in Nigeria? If your answer is yes, this post is for you. We have carried out extensive research to compile this list of platforms that grant unsecured loans in Nigeria. Technology-driven financial platforms have now made it easy for people to get quick and instant loans with low-interest rates.

Also Read: How to source funds for your startup business in Nigeria

In the past, you would have to stake your asset as a guarantee before you can be given a loan, no matter how little the amount. Today, you can borrow up to millions of Naira without the need for collateral. Fintech companies are disrupting traditional financial institutions with innovative digital services. These innovative processes have made it easy and convenient for people to have access to unsecured loans.

The list below is in no particular order. Please go through it and select the one that best suits you. Meanwhile, we generated this list based on acceptability by the general public and market dominance.

Top Companies That Give Loan Without Collateral 

  1. Sumotrust

loan without collateral

Sumotrust is one of the leading savings and investment companies in Nigeria. They have designed a special loan package for their customers to access 20% of their principal savings as a loan. The idea is to empower their customers with cash facilities needed to carry out their mission projects. However, the only requirement is that you must have saved money with Sumotrust for a minimum period of 6 months without making any withdrawals. The exciting thing about the Sumotrust loan package, aside from their 3% monthly repayment plan, is that you will receive 10-15% interest on your principal savings.

For example, if you have saved 100k with Sumotrust, you will be eligible to withdraw 120k plus your 10-15% interest. You can create your Sumotrust account and start saving on qualifying for this loan package.

  1. Renmoney

Renmoney is another loan company in Nigeria that gives unsecured micro-business loans of up to N4 million. To qualify for this loan, your business must have a good income statement history that guarantees monthly earnings for repayment. Renmoney gives a minimum loan amount of N100, 000 with a 2.8% interest per month.

  1. Carbon (formerly PayLater)

Carbon is an instant online loan app that gives you access to an unsecured loan in Nigeria. If you want instant online loans without collateral to help you cover urgent and unexpected cash needs, go for Carbon. The platform will access your Bank Verification Number (BVN) to determine your loan worth. You can access a minimum of N3000 and a maximum of N20 000 000, while the interest rate varies.

The interest rate ranges between 5-15%, depending on your loan repayment period and the amount you wish to borrow.

  1. Branch

Branch provides loans without collateral to business owners in Nigeria. You can access as little as N1000 to a maximum of N200 000 within 24 hours on the Branch platform. Depending on your loan amount, you are expected to back between 4-40 weeks. You can easily access Branch loans, but they have an interest rate that ranges from 15% -34%.

The interest rate depends on your repayment history and the cost of lending for the platform.

  1. KiaKia

You can access loans from Kiakia as an individual or business entity. Sterling Bank Plc backs this platform. Kiakia also allows savers to lend out funds at negotiated interests. The minimum loan amount you can get from Kiakia is N50 000, with a 3.5% monthly interest rate.

  1. Aella Credit

Loan without collateral

This platform is designed to help employees access more funds with an interest rate between 4%-29%. The minimum loan amount is N1 500, while the maximum is N700 000, and the interest is between 4% -29% every month. Aella Credit offers its services in Nigeria, Ghana, and the Philippines. The loan tenure spans from 1 to 2 months.

  1. FairMoney

FairMoney provides quick loans without collateral for your needs, like bill payments. To access this loan, you will need to provide your BVN and your debit card. FairMoney loan ranges from N2 500 to N 150 000, and the interest starts at 5% and can go as high as 28%. The interest rate is dependent on the amount of money you want to borrow. The loan term duration lasts for 4-26 weeks. If you repay your loan before the due date, FairMoney gives you a reduced interest rate.

  1. Migo

Loan without collateral

Migo is another company where you can easily access loans in Nigeria. With your Bank Verification Number (BVN) and your account number, you can get a loan of up to N500 000. Migo charges between 5-15% interest rates depending on the amount of money you borrow. Also, you have to repay the loan between 2-4 weeks.

  1. Lidya

This is one of the leading loan companies in Nigeria and was launched in 2016. Its mission is to close the credit gap in Nigeria and other emerging markets, especially in Africa. As a business, you can access unsecured loans on Lidya within few hours, provided you satisfy all requirements. The minimum loan amount on Lidya is N150 000, with a 3.5% monthly interest rate.

  1. QuickCheck

Last but not least, on our list is QuickCheck. This platform offers up to N500 000 instant collateral-free loans within minutes, Nigeria. As a first-timer on this platform, you can only access N10 000 and is required to pay back within 30 days. Meanwhile, early repayment of loans guarantees lower interest rates and higher amounts for you to borrow. Also, interest loans are only paid for the period you use the loan. Like previous loan platforms we mentioned in this post, QuickCheck also requires you BVN for security and verification purposes.

Conclusion

Although there are other avenues where you can access loans without collateral in Nigeria, fintech companies lead the way. Today you can easily access loans without worrying about having assets for collateral. Our advice to you is that you should borrow responsibly and don’t just borrow because you can. For contributions and questions, kindly make use of the comment space below.

 

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Finance

The Key Challenges Facing Nigerian Banks

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Everyone who owns a bank account in Nigeria would have at one time or the other had reason to walk into the bank and encountered the long queues. There are times when we often wonder if these banks deliberately make people queue just to patronize them but the indisputable fact remains that even as we face challenges, so do these banks. so what are ts The Key Challenges Facing Nigerian Banks

Challenges Facing Banks in Nigeria

The Key Challenges Facing Nigerian Banks

The Key Challenges Facing Nigerian Banks

The various challenges facing the Nigerian banks include;

1.         Weak capital base

It is considerably difficult for a bank which can “hardly feed itself” to grant customers loans or go into international trade. A bank with a weak financial base is a bank on the highway to failure. Little wonder therefore why several years ago, the Central Bank of Nigeria (CBN) on realizing this impending doom, directed all Nigerian banks to increase their capital base from N1b to at least N25b by December 31, 2005. This led to the closure of many banks and only 25 banks were able to meet the N25b requirement. Some banks had to resort to mergers.

2.         Ethics and professionalism

Ethics can be regarded or is a defined and agreed set of values and principles or guidelines which confer or enforce on a person a sense of differentiation of what is right from what is wrong. Nigerian banks are known for a high display of unethical and fraudulent behaviours as well as greed and insider abuse.

This, therefore, constitutes most of the distress bank customers, the bank staff and management go through. In spite of the many interventions by the Central Bank of Nigeria in this issue, the trend keeps rearing its ugly head, every now and then within the Nigerian banking space.

3.         Poor corporate governance practices

Majority of banks do not adhere to good corporate governance practice. In the banking industry, the need for proper governance cannot be overemphasized if there must be an improvement in the company’s performance and attraction of potential investors etc. Other factors which form a cork in the wheel of progress of Nigerian banks include over expansion as well as the corruption of bank officials and improper risk management.

Fraud could be substantively reduced in the Nigerian banking system if proper business ethics and whistleblowing efforts and practices are carried out. This, of course, can be enforced or enhanced via moral corporate governance, which of course is lacking in many Nigerian banks. Recently, a new banking code of ethics was constituted. How many banks have enforced this in their working system? Very few, if any. This, therefore, calls to question the credibility of these banks.  If these corporate governance principles were efficiently implemented by banks, we would witness significant progress in our banking sector.

4.         Reliance on public sector funds

Most banks now depend on the public sector for funding thereby neglecting the private sector.

To discourage this trend, therefore, the Central Bank of Nigeria had to enact and enforce a policy which directed an increment of cash reserve requirement for the public sector. This policy upon implementation got many banks on their feet with a resultantly increased sourcing of funds or income from the private sector.

5.         Slow GDP growth

Factors like Low oil prices and low availability of foreign currency affect banks negatively. Banks meet several threats from their operating environment and the fact that Nigeria is sliding into recession (which is fast rewinding as at the time of writing this) is a potent factor.

Despite the relentless efforts by banking authorities to regulate and as much as possible, normalize the foreign exchange as well as the interbank market thereby enhancing the inflow of dollars, Nigerian banks still face severe narrow foreign currency liquidity. This is a big blow for the banking system in Nigeria and the need for a change cannot be too much to ask for.

6.         Implementation of the TSA-Treasury single account.

The implementation of the treasury single account in Nigeria has become a problem for Nigerian banks reason being that states and government parastatals that would normally fix deposit huge sums of money would no longer be able to do this as this money has to be rendered to the federal government for payment into the nation’s general treasury single account. Previously, banks use this fixed deposited money to grant loans and engage in other financial transactions while generating interest for itself. Banks no longer have access to floats provided by the accounts they maintained for the ministries, departments and agencies.

At a greater loss from the implementation of treasury single account are deposit banks. This is because public sector funds make up a large portion of commercial banks deposit. Due to this, banks will continue to devise means of mobilizing funds from the private sector.

Other challenges Nigerian banks faces are;

  1. The arrest of bank managing directors by the Economic and Financial Corrupt Practices Commission (EFCC).
  2. A decline in oil prices which has led to decrease in government revenues and subsequently bank rates.
  3. Failing to meet customer’s expectations.
  4. Implementation of the Full abolition of commission in turn over policy.
  5. Inaccessibility of banks in rural areas.
  6. Insufficient revenue.
  7. Non-availability of foreign exchange reserves.
  8. Pressure from regulatory bodies.
  9. The struggle for foreign currency imports by customers.

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Major Trends in E-commerce You Can’t Ignore in 2021

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Miss these 10 major ecommerce trends at your own risk! find out the Major Trends in E-commerce You Can’t Ignore in 2021 today.

2021 is the best time for ecommerce, with some amazing developments happening in this field. E-retailers are using data, analytics and innovative interaction to retain existing customers and gain new ones. Many trends and technologies are pushing ecommerce forward in an exciting way.

Ecommerce being an ever-evolving domain, its future is tough to predict. But these trends are promising for the consumers and retailers alike.

We’ve listed the 10 major trends in ecommerce you can’t ignore in 2021 who are pushing ecommerce forward.

Major Trends in E-commerce You Can’t Ignore in 2021

Major Trends in E-commerce You Can’t Ignore in 2021

·         #1. Integrated virtual sales implementation

Previously, the online sales team would wait for the customer to ask queries. Customers would ask about the features and specs, before making the purchase.

Retailers are now going the next step to initiate a conversation with the consumers via live chat. This leads to a direct point of connection with the visitor/buyer thereby forging loyalty. The sales team offers reliable advice about the products, its features or supplementary information, consumers are more likely to become loyal customers.

In 2021, brands are focusing to build loyal customers. The sales team no more makes pitches, they answer customer queries to build long term customer relations.

·         #2. Multichannel selling

When consumers find unique products on a merchant website, they also visit marketplaces such as Amazon and Etsy to find it there. In multichannel selling, the vendors sell on his own website and on other high traffic websites and marketplaces.

The consumers go to high traffic websites selling thousands of products to find unique items from multiple sellers. Here the consumer can buy a wide array of items and pay at a single point of payment.

Multi-channel selling is gaining momentum, no more can sellers afford to sell their products just on their website. Multi-channel selling exposes their products to a much wider audience.

·         #3. Instant delivery

This trend originally started by Amazon has gained popularity and is preferred by consumers. Same day delivery and delivery within an hour for groceries which means faster shipping will bring customers back for more purchase.

The key here is to keep your shipping methods in place to get the product to the consumers in the shortest time period.

·         #4. Real time analysis

In ecommerce, data is an invaluable source to gain insights into the customer behavior on the website. With traditional analytical methods, spotting trends and behavior is time-consuming. Actions to be taken by the seller are slowed down since they are unable to provide immediate assistance to the buyer.

Here comes real time analysis, the new hero of ecommerce. Issues or loopholes in the sales funnel are immediately identified by studying the customer interaction on the website. By offering a quick discount or assistance by live chat tools the problem can be easily solved. The conversion rates increase incrementally since the problem is solved while the consumer is on the website.

Real time analysis offers retailers an opportunity to fix customer issues immediately.

·         #5. Video Marketing

High quality product images and optimized product descriptions are vital for an ecommerce site. Now these are prerequisites.

Brands are using videos to build trust with the customer. These videos are entertaining and educating the customer with the aim to engage them. Behind the scene video clips, 360o videos, informative videos and live streaming is just the start of video marketing.

The importance of using videos includes – making the website SEO friendly (Google is planning to rank websites based on videos now), increases conversions and information is easier to consume. With Facebook including autoplay feature for videos last year, videos are now a primary source of consuming information.

Many brands have built huge YouTube networks while others user Vine, Instagram and Facebook to capture the consumer’s attention. Today there are more opportunities than ever to create a brand’s presence on websites/social networks where the target audience resides.

·         #6. Content is still the reigning king

Content is no more the means to optimize your ecommerce website for the purpose of SEO. Today, content is all about being informative. It is more essential than ever to stand out with uniquely helpful content.

Coming up with factual and actionable content is a difficult task. Many brands are involving their team members and the sales team to solve the customer related queries and build customer loyalty.

·         #7. Only retail players will be extinct

Brands are increasingly combining the online and offline experience. Before going to the physical store the customers would like to see if the stock is available in the store. The company website or the app tells the customer if the product is available, if not in stock then the customer is notified when the stock is refilled.

Going a step further, they let the customers see the stock in the local store and allow them to order from there, delivering within 24 hours.

·         #8. Rise of mobile shopping

When we think of “what next” in ecommerce, the answer is very obvious – mobile shopping. While this trend isn’t new, it consists of more than half the products purchased online. This means that ecommerce has to optimize their sales funnel for mobile.

A person spends upto 5 hours per day on his phone, this shows how mobile is now an integral part of life, so is online shopping. Mobile shopping removes barriers to comfort, brings simplicity in making and purchase and along with engaging the customer.

·         #9. More user friendly designs

UX/UI has massive influence on a customer. The branding has to be properly reflected, navigation easy and appeal the target audience. The entire experience has to be excellent or positive, if it’s substandard the website will get buried in the clutter.

While a good shopping experience can transform a visitor into loyal customer, the wrong shopping experience does more harm. The advantages of user friendly designs include – more sales because the purchasing is easy and the customer spends more time on the website leading to greater conversions and engagement.

·         #10. Connecting users with social channels is not enough

Getting consumers to like or comment on your social media pages is an outdated trend. With Facebook, Pinterest, and Twitter adding a buy button, brands are directly selling from their social networks.

In 2021, brands will have to find new ways to reach the right audience’s cutting through the clutter. With organic reach of social networks on a decline, ecommerce brands will have to find newer ways to engage their social media audience.

Concluding thoughts – Get creative and innovative, because ecommerce in 2021 will witness fascinating changes.

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List of Online Shopping websites in Nigeria

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There are many lists of online stores and shopping websites in Nigeria where one can shop online through the use of Phone or computer to access a website and a payment system. These E commerce shopping websites in Nigeria have become common among Nigerians as many prefer to Purchase things online while it is being delivered to them at home or office. Follow me as i am going to exposed to you the List of Online Shopping websites in Nigeria.

There has been some rapid growth in the Online shopping websites in Nigeria and most online stores have proven to be trust worthy as they discharge their duties. One can now but things at the comfort of their own home or office with varieties of payment system without the fear of loosing his or her money.  There are also other things you have to know before you shop online in Nigeria which I have previously published and you can read it here: This is the list of some Online Shopping websites in Nigeria according to their category of service.

List of Online Shopping websites in Nigeria

List of Online Shopping websites in Nigeria

List of Online Shopping websites in Nigeria

Perfume

  • http://www.perfumehouseng.com/
  • http://www.fragrances.com.ng/

General

  • http://www.kaymu.com.ng/
  • http://www.konga.com/
  • http://www.jumia.com.ng/
  • http://www.konga.com/
  • http://www.dealdey.com/
  • http://deluxe.com.ng/
  • http://www.adibba.com/
  • http://www.mystore.com.ng/
  • http://www.shopandmall.com.ng/
  • http://www.kara.com.ng/
  • https://www.webmallng.com/
  • http://zetashop.com.ng/

Wrist Watch

  • http://www.watchlocker.net/
  • http://www.watchaven.com/
  • http://timeless.com.ng/

Fashion

  • http://www.eshopng.com/
  • http://www.taafoo.com/
  • http://www.ozyet.com/
  • http://shopaholicng.com/

House products

  • http://gloo.ng/
  • http://www.dreamcare.com.ng/
  • Electronics/Computer/Phones
  • http://www.smartbuy.ng/
  • http://www.fouani.com/ng/
  • http://www.afriqbuy.com/
  • https://parktelonline.com/
  • http://www.lowcart.com/
  • http://www.blessingcomputers.com/
  • http://www.dsclng.com/

Furniture

  • https://www.domestico.com.ng/

Foods

  • http://www.forfoodonly.com/

Shoes

  • http://komoonline.com/
  • http://www.ohmashoes.com/
  • Health and personal Care
  • http://www.sizzelle.com/

Grocery

  • http://gidistores.com/
  • http://deeski.com/
  • http://www.jaramall.com/
  • http://lagmarket.com/store/

Auto Parts

  • http://www.autobox.ng/

Conclusion

Online Shopping in Nigeria is advisable if you can’t go to the mall or market yourself. It is relatively easy and almost anyone can do that provided you have a clear address and a correct payment system being requested by the websites. I have bought some few things online and it was a good experience with remarkable service.

Please share this post, like our Facebook page and I will like to have your suggestions and thoughts in the comment box.

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