• Business Insider SSA examines nine technology platforms that provide fast lending to SMEs in Nigeria.

Over the years, the accessibility of loan facilities for small and medium-sized enterprises (SMEs) from financial institutions has been especially appreciated by large companies.

As the paradigm shifts towards technology platforms, a growing number of entrepreneurs and small business owners can now get an unsecured loan seamlessly and quickly.

It is quite normal that these fintechs initiate credit facilities accessible to small and medium entrepreneurs, they also compete to offer the best customer relationship products at competitive rates.

This helps small business owners avoid the headache of commercial banks asking for collateral and guarantors that may never be easy or available at all.

The need for SME loans

By a PwC 2018 report, SMEs contribute 48% of national GDP, represent 96% of businesses and 84% of employment in Nigeria. This clearly shows that a healthy SME industry is vital for the growth of any economy.

Here are some digital SME lending platforms in Nigeria:

1. Lidya – Digital lender reserved for SMEs

Lidya is one of the leading small and medium-sized business lending platforms in emerging markets. Launched in November 2016, with a mission to close the credit gap, both in Nigeria and in emerging markets.

Businesses looking for working capital of $ 500- $ 50,000 can apply online or through their mobile phone and get a decision within hours while waiting for all requirements to be met. To assess credit risk,

Lidya uses nearly 100 data points to assess businesses, establish a business-specific credit score, and disburse loans based on that business’s credit profile.

  • Loan amount: 150,000 N +
  • Interest rate: 3.5% per month

2. Kiakia – Fast digital credit

The Abuja-based digital lender offers fast loans to small and medium-sized businesses in Nigeria. Backed by Sterling Bank Plc, the lending platform also allows savers to lend funds at negotiated interest through intuitive conversations.

  • Minimum loan amount: 50,000 N
  • Interest rate: 3.5% per month

3. Renmoney – loan for micro businesses

Renmoney provides loans to microenterprises of up to N4 million. To get a Renmoney SME loan, your business must have a good income statement history and can boast of regular monthly income for repayments.

  • Minimum loan amount: 100,000 N
  • Interest rate: 2.8% per month

4. Carbon – Carbon for businesses

Carbon, formerly Paylater, recently launched Carbon for Business to serve startups, small and medium enterprises (SMEs) and FinTechs with a loan to grow their businesses.

Carbon, like others, generates your Bank Verification Number (BVN) to determine the value of your loan.

  • Loan amount: up to 20 million naira
  • Interest: Varies

5. C24 – personal loans for individuals

C24 is a financial institution that offers retail loans to consumers in need of quick financial solutions. The company is focused on providing services accessible online, from any internet connected device, anywhere in Lagos, Nigeria.

  • Loan amount: up to 5 million
  • Interest rate: 4% per month

6. QuickCheck – Quick online loans for SMEs

This loan app helps Nigerians access fast instant unsecured online loans and is accessible to both employees and small business owners.

  • Loan amount: 1,500 N – 500,000 N
  • Loan interest: 5% per month

7. SMEDAN – SME loan supported by the government

SMEDAN is a government-backed initiative that provides quick business loans to Nigerian SMEs in need of finance. The main mission of the organization is to promote entrepreneurship among Nigerians and also to provide capital to start the business.

Besides financing, SMEDAN also offers business owners hands-on training and support to help them run their businesses.

  • Minimum loan amount: 100,000 N
  • Interest rate: 4% / month

8. Eazzicash – Commercial loan

EazziCash offers immediate financial needs to small business owners under two product categories. They are EazziAssist and EazziPawn.

  • Maximum loan amount: 5 million naira
  • Interest rate: Not clear

FastCredit provides commercial loans to micro, small and medium enterprises to support business growth. The loans are backed by guarantors and have a maximum term of 6 months for entrepreneurs meeting the criteria.

It currently operates in all of the southwestern states of Nigeria except Ekiti State. SMEs will need to show proof of business and residential address in order to get an instant FastCredit SME loan.

  • Minimum loan amount: 100,000
  • Loan interest rate: 4% / month.



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