4 Ways to Obtain a Bank Loan Without Collateral in Nigeria

Bank Loan Without Collateral in Nigeria

Obtaining a bank loan without collateral in Nigeria can be so much of a hassle, I know. But today, we’ll trash that out.

Welcome, welcome. Good to have you here again for another insightful and exciting time, right here on the blog. Many times I have come across people who needed loans to sort out some urgent issues but were anxious to do so. Guess why? Because they assumed all loans involved collaterals.

Oh….dear, are you in the same boat and you’ve given up hope on ever taking a loan, simply because you feel you do not possess good enough collateral? Then this post is dedicated to you because the good news is, though you may not qualify for an established bank loan, you can still easily get a loan without collateral right here in Nigeria once you meet up with certain requirements. Wondering how, then keep reading.

Remember our previous post on Microfinance banks, well if you missed it see here-https://bankcustomersupport.com/7-reliable-microfinance-banks-in-nigeria/. One of the major essences of setting up Microfinance banks is to meet the needs of major business owners and those with limited access to large sums. With little or no collateral at all, less than two guarantors, and a bit of paperwork in most cases, you could actually have access to a loan.

Your reason for getting a loan could be personal or for business purposes; also the amount you are eligible for and the loan term is subject to what documents, and basis you present.

To be eligible to receive a loan, the microfinance bank will have to appraise you and determine if you will be able to repay your loan and this is based on a number of factors referred to as “Credit Worthiness”

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Your creditworthiness factors that determine your eligibility for a bank loan without collateral include:

  • If you have a previous existing loan with another lending institution or bank
  • your repayment history for any previous loan
  • Your income rate in comparison to the loan amount and repayment time frame
  • Your guarantors ultimate capability of taking responsibility of your loan

When your creditworthiness meets up to the requirements, then you get qualified for a loan. What’s more? The more creditworthy you are, the more beneficial it becomes for you, as your loan application is sorted faster compared to a poor creditworthy person.


  1. Private Sector Loan

Approval of loans for private-sector workers usually involves extreme layers of security, because, unlike government jobs, the security of private jobs isn’t guaranteed. But then, this shouldn’t dissuade you because a few options still abound to help you in getting a loan, despite being in the private sector.

One of such options is if you have been in the company for a long time and you hold a big role, the gun can be jumped for you, or in some cases, there is usually a need to collaborate with your employer to reinforce the repayment plan of your loan before such loan can be granted.

At other times, if you are able to provide a satisfactory guarantor, you could apply for a bank loan without collateral in Nigeria and be granted.

2. Business Loan

As a business owner, you might wonder if you fit into the list of those who can assess bank loans. Oh yes! you do. Though you might not be earning a salary, you can still apply for a bank loan without collateral in Nigeria and get approved.

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However, certain prerequisites are to be met, such as the verification of business location and flow of income.

In most cases, collateral and guarantors are required; other times, they are not, also undeviating withdrawal permission has to be granted.

If you meet these requirements, then you’re well on your way to getting a business loan.


If you work with the Federal Government of Nigeria, it is most likely your salary is disbursed through the IPPIS system. IPPIS is an acronym for Integrated Payroll and Personnel Information System.

The IPPIS system is a project established by the Federal Government of Nigeria (FGN) to boost the and efficiency and transparency of payroll disbursement for its Ministries, Departments, and Agencies (MDAs).

If you have a confirmed IPPIS number and regularly collect your salary through IPPIS, then you can proceed to apply for a bank loan without collateral in Nigeria.

To find out more about the IPPIS system, see here- https://www.ippis.gov.ng/


If you work with The Lagos state government of Nigeria, you’ll discover that it also has a  payment system similar to the IPPIS system for its workers called ORACLE. 

An Oracle number is given to all civil servants in Lagos by the Lagos state government. This number is used to pay all the staff salaries that work across all sectors within the government. 

By Oracle number usage, you could apply for a bank loan without collateral in Nigeria and ultimately get approved fast. Now, isn’t this great?

Other Prerequisites for a bank loan without collateral in Nigeria include:

  • Valid National ID Card
  • Work ID Card
  • Bank Verification Number
  • IPPIS Number or Oracle Number
  • Bank statement of account
  • Employment/ Confirmation/ Deployment letters respectively.
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I hope this post clearly points out the fact that obtaining a bank loan without collateral shouldn’t be much of a hassle. And if you intend to get a loan soon, please ensure you fulfill all righteousness and I wish you good luck.

Till we have another session again on this platform, do stay safe.

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