Starting or scaling a small business in Nigeria often requires capital. Whether you are opening a retail store, expanding a tech startup, or launching a service business, having access to reliable funding can make the difference between success and stagnation. Fortunately, Nigeria’s financial sector offers a range of small business loans tailored to entrepreneurs, startups, and SMEs.
In this guide, we explore the top 10 small business loans in Nigeria, their eligibility requirements, interest rates, repayment terms, and key benefits.
1. Bank of Industry (BOI) Loans
The Bank of Industry (BOI) is one of Nigeria’s largest development finance institutions. It focuses on providing long-term funding for small, medium, and large-scale businesses.
Features:
Loan amount: ₦500,000 – ₦500 million
Interest rate: 5% – 9% per annum (depending on the program)
Repayment period: 1 – 10 years
Collateral: Asset-backed or guarantees
Benefits:
Low-interest rates compared to commercial banks
Support for a variety of sectors, including manufacturing, agriculture, and services
Flexible repayment structures
Best for:
Startups and growing SMEs seeking large-scale funding
2. Bank of Agriculture (BOA) Loans
For entrepreneurs in agriculture, the Bank of Agriculture (BOA) provides specialized loans.
Features:
Loan amount: ₦100,000 – ₦20 million
Interest rate: 7% – 12% per annum
Repayment period: 1 – 5 years
Benefits:
Focused on farmers, agribusinesses, and food processing companies
Provides technical assistance alongside funding
Best for:
Agripreneurs who want low-interest agricultural loans
3. SMEDAN Microfinance Loans
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) partners with microfinance institutions to provide loans for small business owners.
Features:
Loan amount: ₦50,000 – ₦5 million
Interest rate: Varies by microfinance bank (often 10% – 20%)
Repayment period: 6 – 24 months
Benefits:
Tailored for micro and small businesses
Often requires minimal collateral
Training and mentorship programs for borrowers
Best for:
Micro-business owners in retail, services, or small-scale manufacturing
4. Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL)
NIRSAL offers credit support and insurance to small agribusinesses.
Features:
Loan amount: ₦500,000 – ₦50 million
Interest rate: 9% per annum
Repayment period: 1 – 5 years
Benefits:
Credit risk is partially insured, making banks more willing to lend
Supports both production and value-chain businesses
Best for:
Small-scale farmers and agro-processing startups
5. Cocoa Abraka SME Loan
Some banks offer sector-specific loans. For instance, Cocoa Abraka SME Loan is designed for small cocoa processors and agribusinesses.
Features:
Loan amount: ₦100,000 – ₦10 million
Interest rate: 10% – 15%
Repayment period: 1 – 3 years
Benefits:
Supports value-chain participants
Often includes technical training on cocoa production
Best for:
Entrepreneurs in niche agricultural sectors
6. GTBank Small and Medium Enterprises Loan
Guaranty Trust Bank (GTBank) provides SME loans with flexible terms for business owners.
Features:
Loan amount: ₦50,000 – ₦50 million
Interest rate: 10% – 18% per annum
Repayment period: 6 months – 5 years
Collateral: Asset or guarantor
Benefits:
Fast loan approval process
Access to business advisory services
Available for multiple business sectors
Best for:
SMEs looking for quick, reliable banking support
7. Access Bank SME Loan
Access Bank offers multiple SME lending products, including working capital loans and equipment financing.
Features:
Loan amount: ₦100,000 – ₦50 million
Interest rate: 12% – 18% per annum
Repayment period: Up to 5 years
Benefits:
Quick loan disbursement
Tailored repayment plans
Training and mentorship programs for SMEs
Best for:
Growing SMEs needing structured business loans
8. First Bank of Nigeria SME Loan
First Bank provides small business loans designed for business expansion and working capital.
Features:
Loan amount: ₦50,000 – ₦20 million
Interest rate: 10% – 20%
Repayment period: 6 months – 5 years
Benefits:
Easy access to funding for SMEs
Flexible repayment schedules
Advisory services to improve business sustainability
Best for:
Micro and small business owners seeking bank-backed loans
9. Union Bank SME Loan
Union Bank supports small and medium enterprises through collateralized and unsecured loans.
Features:
Loan amount: ₦50,000 – ₦50 million
Interest rate: 12% – 18%
Repayment period: 6 months – 5 years
Benefits:
Quick loan approval for established SMEs
Option to choose between collateralized or unsecured loans
Flexible repayment plans
Best for:
SMEs with existing banking relationships
10. Stanbic IBTC SME Loans
Stanbic IBTC provides specialized SME loans aimed at startups and established businesses.
Features:
Loan amount: ₦100,000 – ₦50 million
Interest rate: 10% – 18%
Repayment period: 6 months – 5 years
Benefits:
Quick access to capital
Advisory support for business planning
Tailored to various sectors including trade, services, and agriculture
Best for:
Entrepreneurs seeking structured financing with bank guidance
Key Factors to Consider Before Applying for a Loan
When choosing a small business loan in Nigeria, consider:
Loan Amount vs. Business Need: Borrow only what is necessary
Interest Rates: Compare rates across banks and agencies
Repayment Terms: Ensure repayment fits your business cash flow
Collateral Requirements: Understand if you need assets or guarantors
Loan Processing Time: Some loans take weeks; others are faster
Additional Services: Some banks provide training, mentorship, or insurance
Tips for Successful Loan Application
Prepare a solid business plan
Maintain accurate financial records
Build a good credit history
Choose the right loan product for your sector
Start with smaller loans if you are a first-time borrower
Conclusion
Accessing small business loans in Nigeria is no longer limited to a few large banks. With options ranging from government-backed programs like BOI, BOA, and NIRSAL to commercial bank loans from GTBank, Access Bank, and First Bank, entrepreneurs now have diverse funding sources.
By understanding eligibility requirements, interest rates, repayment terms, and benefits, you can choose the right loan product to grow your business. Combining these loans with smart financial planning and disciplined repayment ensures that your small business thrives sustainably.
Whether you are a startup looking for capital or an established SME aiming to expand, Nigeria’s small business loan landscape offers opportunities for every entrepreneur willing to plan wisely and execute efficiently.