How to Secure Capital Loan for Business in Nigeria.

How to secure capital loan for business in Nigeria is a major challenge in this part of the world, considering the fact that Nigeria is the poverty capital of the world. Banks nonetheless remains the best bet to getting the quick and easy access to loans. This is because banks play a major role in the economic development of any individual whom they deem capable of it.

In an economy as competitive as this, everyone sees hope in starting up some business and getting to work for themselves and getting their own profit for the sweat they put in it. But, one major problem often face by people is, getting the needed capital. As the country itself does not encourage savings, given the inflation which presently drives the space crazy, people become helpless and their resort is on how to secure capital loan for business in Nigeria.

The Simple Ways By Which Loan Can Be Applied for in Nigeria:

  1. Visit your bank for loan
  2. Declare the business and loan purpose for bank appraisal
  3. Convince the bank with necessary proofs and documents
  4. Await approval and disbursement of money

So, how you get this loan? Of course, the most reliable channel to source for loans is the BANK, both online or offline.

How to Secure Capital Loan for Business in Nigeria.

Constantly confronted with challenges such as inconsistency in government policies, poor infrastructure and support, access to market, multiple taxation and obsolete technology and importantly, access to finance, banks have gone into working on their adequate financing capacity. A number of Nigerian banks offer loans up to N500 million to help small businesses thrive.

In addition to offering relatively low rates of interest, these loans are designed to suit varieties of businesses and some require no collateral.

In case you want to get loans or looking for how to secure capital loan for business in Nigeria, this is the way out:


There are two types of loans. The first is overdraft, while the second is term loan. With overdraft loan, you can directly withdraw your money that is sent to you from your active bank account. The overdraft only gives out loan according to the amount of money you earn as salary. This means they give only half of what you earn to you if your capital need is short term one. It also operates on a pay-as-you-go interest rate. Meanwhile, the one that is good for your business is the term loan. It can be collected from the bank purposely for long projects and high-risk businesses. Its interest rate is huge, starting from the day you collect it.


One of the biggest shot on how to secure capital loan for business in Nigeria is understanding how banks run loans an interests. Banks are generally free to determine their own interest rates that they pay for deposits and charges for loans. The interest rate is the amount lenders charge borrowers and is a percentage of the principal. It is also the amount earned from deposit accounts. Banks set interest rates correspondingly to the rates set by the Federal Reserve.

They also consider the interest rates charged by competitors. On a specific loan, banks take into consideration the borrower’s creditworthiness, which includes their credit score, income, savings, and other financial metrics. So it is important that you first go to the bank to specifically understand how they run loans and interests.


Having no business plan is like having not the readiness to secure a loan in the first place. A successful business plan should incorporate a set of targets and objectives. While the overall plan may set strategic goals, these are unlikely to be achieved unless you use SMART objectives or targets, i.e. Specific, Measurable, Achievable, Realistic and Timely. Your business plan is an extremely effective tool when it comes to convincing potential collaborators. Suppliers and financial partners (lenders and investors) ask for a business plan to assess your project’s viability.

The 3 most important purposes of a business plan are:

  • to create an effective strategy for growth
  • to determine your future financial needs
  • to attract investors (including angel investors and VC funding) and lenders.

Collateral is simply an asset, such as a car or home, that a borrower offers up as a way to qualify for a particular loan. Collateral can make a lender more comfortable extending the loan since it protects their financial stake if the borrower ultimately fails to repay the loan in full. Oftentimes, some banks do not request for a collateral before they give out loans. But then other banks request for it. For example: the home or real estate you purchase is often used as collateral when you take out a mortgage, or the vehicle you purchase is typically used as collateral when you take out a car loan.

However, once you have understood your bank, it is then perfect that you get your collateral ready for efficiency in receiving the loan since loans are important for banks to reduce their risk.


Learning to write an acceptable loan application could be a fine way to mastering how to secure capital loan for business in Nigeria. Loan application is a step to getting the loan, therefore it is necessary, essential and beneficial. Thus, these are the things to consider when writing. This is after you might have learnt the sample and techniques of writing it.

  • You must know that it is formal, select your words and phrases carefully.
  • You must make your words easy to understand and comprehend.
  • You must communicate your message in a short and straightforward way.
  • You must give a good reason for borrowing and detail it succinctly.

A guarantor is a person who guarantees to pay a borrower’s debt if they default on a loan obligation. It is one of the means by which the bank reduces the risk of losing their money when the borrow defaults. Therefore, it is very important that you must get and present your guarantor who must be recognizable or must have an identifiable profession that is attached to a reputable source, to the bank from which you are borrowing money.

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