7 Top Startup Business Loans in Nigeria

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Starting a business in Nigeria can be an exciting venture, but it often requires adequate funding to get off the ground.

One popular option for obtaining the necessary capital is through business loans specifically designed for startups.

In this article, we will explore seven top loan providers in Nigeria for startup businesses.

Additionally, we will discuss the requirements for obtaining these loans.

Top 7 Startup Business Loans in Nigeria

1. Bank of Industry (BOI)

– BOI offers various loan programs, such as the Youth Entrepreneurship Support (YES) Fund and the Graduate Entrepreneurship Fund (GEF). These loans provide favorable interest rates and tenures to eligible startups.

2. Tony Elumelu Foundation (TEF)

– The TEF Entrepreneurship Program supports entrepreneurs with seed capital and mentorship. This program has provided opportunities for many startups to flourish in Nigeria.


– Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) provides loans and support services to startups and small businesses. They offer low-interest loans with flexible repayment plans.

4. Bank of Agriculture (BOA)

– BOA focuses on agricultural startups and offers loans tailored to the specific needs of this sector. They provide funding for land acquisition, equipment purchase, and working capital.

5. GroFin

– GroFin is an international finance organization that supports small and medium-sized enterprises. They offer finance, business support, and market access solutions to startups in Nigeria.

6. Lagos State Employment Trust Fund (LSETF)

– LSETF is a government initiative in Lagos State that provides loans, grants, and training programs for startups and small businesses. They aim to create employment opportunities and foster economic growth.

7. African Development Bank (AfDB)

– AfDB offers financial products for startups in Nigeria, including grants, equity investments, and loans. They prioritize sustainable and innovative business ideas that have the potential to make a significant impact.

Requirements for Obtaining Startup Business Loans

While the specific requirements may vary among lenders, some common criteria for obtaining startup business loans in Nigeria include:

• Business Plan:

A comprehensive business plan that outlines your startup’s goals, strategies, and financial projections.

• Collateral:

Some lenders may require collateral, such as property, vehicles, or inventory, to secure the loan.

• Personal Credit Score:

Your personal credit score is often assessed to evaluate your creditworthiness.

• Legal Documentation:

Relevant legal documents, such as registration certificates, tax identification numbers, and licenses, may be required.

• Bank Statements:

Providing your bank statements demonstrates your financial stability and cash flow.

• Experience and Expertise:

Demonstrating your experience and expertise in the industry can increase your chances of loan approval.

• Industry Analysis:

A thorough analysis of your target market, competition, and potential risks can strengthen your loan application.


Can I apply for a startup business loan if I have a low credit score?

While having a low credit score may limit your options, some lenders offer loans specifically designed for individuals with lower credit scores. It is advisable to explore these options and work on improving your creditworthiness.

How long does it take to receive funds after loan approval?

The timeframe for receiving funds varies among lenders. It can range from a few days to several weeks, depending on the lender’s processes and requirements. It’s recommended to inquire about the expected timeline during the application process.

What are the interest rates for startup business loans in Nigeria?

The interest rates for startup business loans can vary based on factors such as the lender, loan amount, and repayment period. It is crucial to compare rates from different lenders and choose the option that best suits your financial capabilities.

Are startup loans available for specific industries only?

While some loan providers focus on specific sectors like agriculture or technology, many lenders offer startup loans for various industries. It is essential to research and identify lenders that cater to your specific business needs.

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