Are facing financial challenges and just wish you could get a soft loan with the hassles of providing collateral?
The Nigerian economy can sometimes become financially unfriendly and a loan can be of great help to remedy this situation.
This can range from financial challenges with your business or even your personal daily life.
The devaluation of the Naira has caused price hikes and plans that you had might be affected leaving you stuck without enough finances to augment.
In order to survive this financial challenge you can obtain a soft loan.
But I don’t have any collateral to do such you might say.
However, there is a way out.
It is possible to get a soft loan in Nigeria without any form of collateral.
This is most especially important for small and medium enterprises, to help them grow their business.
Sources of Soft Loan in Nigeria without Collateral
So many organizations have developed a cooperative society to help with different types of challenges.
In order to benefit from cooperative societies, you must be a member.
One of the perks of becoming a member includes obataining soft loans without any collateral.
This can be paid back based on the agreement reached and signed by both parties.
Genuine Microfinance banks
The micro finance bank as the name implies is a financial institution feared specifically for low income earners. They also cater mostly for small and medium scale businesses.
These Micro finance banks can give loans to businesses with lower interest rates when compared to the commercial banks. The loans are also given without collateral.
There is however, a signed agreement capturing a payment plan agreed upon by the beneficiary.
These are private individuals who are financially buoyant and have the keen interest of helping small businesses grow.
The challenge here is how to identify them as they make no announcement as to who they are.
You can obtain loans from Business Angels based on trust.
An agreement is then reached and you are given the loan without any collateral.
Federal Government Agencies
The Federal Government has several schemes that provide opportunity for growth to small businesses.
An example is their focus on agriculture. There is a scheme that provides soft loan for farmers without collateral and they are allowed to pay back based on an agreement.
All you need to do is find a scheme for small businesses and you will be able to apply to get your collateral free loan.
Revolving Loan Schemes
This is a simple scheme that has been in existence for a long time. It popularly called “Adashe” in Hausa, “Esusu” in Yoruba and “Utu” in Igbo.
It comprises a small group of trusted members who pull funds together weekly or monthly. Each person contributes an agreed amount and at the end of the week or month the lump sum is given to one person and the process is repeated until all members have benefitted.
This is a quick way to raise funds without collateral.