Can I Get a Loan in Nigeria Without Using Collateral or a Guarantor?

Access to loans is now more inclusive in Nigeria than ever before, especially for individuals who don't have assets to pledge as collateral or access to a guarantor.
So, "Can you get a loan in Nigeria without collateral or a guarantor?" And the answer is yes, but under certain important conditions and provisions.

Understanding collateral-free and guarantor-free loans
Collateral-free or unsecured loans are loans extended without the borrower being required to put up an asset (such as a car, land, or house) as collateral. Likewise, guarantor-free loans do not ask someone else to co-sign and undertake repayment in case of default by the borrower.
Such loans are especially convenient for:

• Salary earners without assets
• Small business owners
• Freelancers and entrepreneurs
• Students and NYSC members

Where to get loans without collateral or a guarantor in Nigeria
Buy Now, Pay Later (BNPL) platforms
Buy Now, Pay Later is a form of micro-credit that allows you to purchase products, especially electronics, phones, and household items, and pay in instalments over time, without collateral or a guarantor. A good example is Oja by Tendar.

Digital lending platforms
Fintech has changed the game. Several mobile-based loan apps and platforms offer instant loans without guarantors or collateral. These platforms use alternative data, such as your phone usage, BVN, bank statement analysis, and credit history, to determine your creditworthiness.

Microfinance Banks (MFBs)
Some microfinance banks offer small business or personal loans without collateral. They usually ask for proof of income, bank statements, and repayment history.

Salary-Based Loans
Salary earners in the public sector or with a well-structured company can get loans without collateral. Repayments are deducted directly from your salary.

Cooperatives and Loan Associations
Worker or market cooperatives generally provide short-term loans to members with little formality, no guarantor, and no collateral. The history of trust and membership is informal security.

What you might need to get approved
Even with no guarantor and no collateral, lenders still assess you to some extent based on how risky they think you are. Here's what most will require:

• Bank Verification Number (BVN)
• Working bank account
• Valid ID (e.g., NIN, driver's license)
• Proof of income or business
• Credit report (good or at least neutral)
• Smartphone with a few financial applications pre-loaded (for digital lenders)
  Again, it just depends on the organization's policy.

Advantages and Disadvantages
Advantages:

• Fast and simple
• No collateral
• Frequently accessible via mobile apps

Disadvantages:

• Lower loan amounts
• Increased interest rates (can be 5–30% per month)
• Stringent repayment terms (typically 30-90 days)
• Excessive charges for default

Yes, you can get a loan in Nigeria without a guarantor or collateral, especially with the rise of digital lenders and new credit scoring systems like Scorewise.
Download Scorewise on the Apple Store or Play Store to check your credit score, track your credit health, and make informed decisions.