One of the challenges of having a business in Nigeria is capital. Truth be told, many potential entrepreneurs have shut down their business idea because of a lack of sufficient cash to start or scale up their businesses. Well, if you’re in these shoes, you’ve come to the right place.
This article will discuss the different types of loans you can take for your business. We’ll be exploring loans such as funding, capital, and zero-interest loans, bonds, And mortgages available to you for free.
What are Capital Funding Loans?
Capital Funding loans are loans that have been created to help struggling businesses to get help them grow and scale up. With these loans, business owners can purchase equipment for workers, and even support other long-term projects.
These loans are usually beneficial for small businesses because they come with fixed terms and conditions. Some of the terms and conditions that you’ll be faced with include repayment period, interest rates, and other small details.
Zero Interest Loans
Zero-interest loans are loans that have been established to help businesses in need of financial support to get financial support.
Generally, this kind of comes from many nonprofit organizations, some government initiatives, and other similar organizations. These loans may not necessarily have the heading of an “Interest-Free Loan” but could serve the purpose of your business
A good example of an interest-free loan initiative would be the NELFUND Student Loans. These loans, though tailored for students, can also be helpful to student entrepreneurs. Yes, you could use the money offered to scale up your business and even expand to other branches.
Another example is the Jaiz Bank Loan. This Jaiz Bank Loan was created to offer interest-free loans to some individuals and businesses. Especially those whose owners are of the Islamic faith in Nigeria. So, if you’re a Muslim faithful, you could take advantage of this opportunity.
Banks That Offer Interest-Free Loans In Nigeria
Here are banks that offer interest-free loans in Nigeria:
1. Taj Bank
Contact Information:
• tajconnect@tajbank.com
• +2349087937417
• +2347008252265
2. Lotus Bank Ltd
Contact Information:
• 0700 56887 2265
• (0700 LOTUS BANK),
• 0700 0100 0000.
3. The Alternative Bank
Contact Information:
• 02 017 000 555
4. Jaiz Bank PLC
Contact Information:
• info@jaizbankplc.com
• +234-9-4605294
• +234-9-8709654
Government Agencies That Offer Interest-Free Loans
Here are government agencies where you can get interest-free loans:
1. The Government Enterprise and Empowerment Programme (GEEP).
2. The Youth Entrepreneurship Support (YES) Programme.
3. The N-Power Programme.
4. The Central Bank of Nigeria (CBN) Agricultural Credit Guarantee Scheme Fund (ACGSF).
5. The Micro, Small, and Medium Enterprises Development Fund (MSMEDF).
6. The National Poverty Eradication Programme (NAPEP).
7. The Nigerian Youth Investment Fund (NYIF).
8. The Nigerian Bank of Industry (BOI) Fund.
9. The Federal Government’s Homegrown School Feeding Programme.
10. The Women and Youth Entrepreneurship Fund (WAYEF).
What Are Bonds?
Bonds are a type of IOU that serves as debt security. Investing in bonds entails lending cash to a company or government, for example, for a predetermined amount of time at a predetermined interest rate. In return, the issuer agrees to return the principal—the money you lent—when the bond matures and to pay you regular interest payments, known as the coupon.
Organization That Grant Bonds To Individuals and Businesses In Nigeria
The following are examples of organizations that grant bonds to businesses in Nigeria:
Corporations That Grant Bonds
1. Dangote Cement
2. MTN Nigeria.
3. Access Bank
Investment Banks That Grant Bonds
1. Stanbic IBTC
2. FBNQuest Merchant Bank.
3. Chapel Hill Denham.
Government Agencies
1. Central Bank of Nigeria.
2. Nigerian Sovereign Investment Authority.
Bond Marketplaces
1. Nigerian Stock Exchange
2. FMDQ Securities Exchange.
What are mortgages?
Mortgages are frequently used to help people afford high-cost properties so they can pay off the loan over time rather than having to pay the entire amount at once.
It is especially utilized for buying real estate, like a house or business. In a mortgage agreement, the borrower agrees to pay back the loan over time with interest after borrowing funds from a lender, usually a bank or other financial institution, to purchase real estate.
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Organizations That Offer Mortgage Loans For Free
Here is an organization that offers mortgage loans for free in Nigeria:
Financial Institutions That Offer Mortgage
1. Federal Mortgage Bank of Nigeria (FMBN).
2. Union Bank of Nigeria.
3. First Bank of Nigeria.
4. Stanbic IBTC Bank.
5. Access Bank.
Government Initiatives That Offer Mortgage
1. Lagos State Mortgage Board
2. Mortgage Banks Under MBAN.
3. National Housing Scheme (Federal Government).
Conclusion
You’ve now been able to see information on organizations that offer the loans you would need as an individual or a business. Our advice for you is to take advantage of these platforms and apply for loans that may interest you.