How to Secure a Business Loan in Lagos in 2025

 

Money makes the business world go round. Whether you’re a startup looking for capital or an existing business trying to expand, getting a loan in Lagos can feel like running through a maze blindfolded. High interest rates, endless paperwork, and the fear of rejection can make the process intimidating.

But here’s the good news: it’s not impossible. With the right approach, you can secure that loan and take your business to the next level.

In this guide, we’ll break down exactly how to get a business loan in Lagos in 2025—from where to look, what lenders want, and how to increase your chances of approval.

1. Know Your Loan Options (Where to Get Funding in 2025)

Not all loans are created equal. Here’s where you can look:

🏦 Traditional Banks (GTB, Zenith, First Bank, etc.)

• Best for: Established businesses with financial records.

• Interest rates: 20% – 30% per annum.

• Requirements: Strong credit history, collateral, and 2+ years in business.

📱 Digital Lenders (FairMoney, Carbon, Branch)

• Best for: Quick, small loans (N50,000 – N2 million).

• Interest rates: 5% – 15% monthly (higher than banks).

• Requirements: BVN, bank statements, and sometimes just a smartphone.

💡 Government & NGO Loans (BOI, Lagos State Employment Trust Fund)

• Best for: Startups and SMEs with growth potential.

• Interest rates: As low as 5% – 9% per annum.

• Requirements: Business plan, CAC registration, and sometimes collateral.

🤝 Cooperative Societies & Private Investors

• Best for: Those who prefer flexible repayment terms.

• Interest rates: Varies (often lower than banks).

• Requirements: Membership (for cooperatives) or a solid pitch (for investors).

Pro Tip: If you’re a startup, start with digital lenders or government loans—they’re more accessible.

2. What Lenders Look For (How to Qualify)

Before approving your loan, lenders check:

✅ Creditworthiness (Do You Pay Back Loans?)

• Fix: Get a credit report from CRC Credit Bureau to see where you stand.

• Hack: If you’ve taken small loans before (even from Opay or PalmCredit), repay on time to build trust.

✅ Business Financial Health (Is Your Business Profitable?)

• Fix: Keep clean records—use accounting apps like QuickBooks or Wave.

• Hack: Show consistent revenue growth (even if small).

✅ Collateral (What Can You Offer as Security?)

• No collateral? Try BOI or LSETF loans (some don’t require it).

• Have collateral? Property, equipment, or even a guarantor can work.

✅ Business Plan (Where Will the Money Go?)

Lenders want to know:

• How will you use the loan?

• How will you repay it?

• What’s your business growth strategy?

Pro Tip: A one-page executive summary can make your application stand out.

3. Step-by-Step Process to Apply for a Business Loan

📌 Step 1: Check Your Eligibility

• Credit score (at least 600+ for most lenders).

• Business age (some require 6 months – 2 years in operation).

• Monthly revenue (N100k+ for digital lenders, higher for banks).

📌 Step 2: Gather Your Documents

• For registered businesses: CAC documents, tax ID, bank statements.

• For sole proprietors: BVN, ID, proof of business income.

📌 Step 3: Compare Lenders

• Interest rates (don’t just go for the easiest approval—check the cost!).

• Repayment terms (daily, weekly, or monthly?).

📌 Step 4: Submit & Follow Up

• Online applications (digital lenders) may approve in 24 hours.

• Banks/NGOs can take weeks—follow up politely.

4. Common Mistakes That Get Loans Rejected

❌ Applying for Too Much (or Too Little)

• Fix: Borrow only what you need (and can repay).

❌ Poor Financial Records

• Fix: Separate personal & business accounts.

❌ No Clear Repayment Plan

• Fix: Show lenders exactly how you’ll pay back (e.g., "This loan will increase sales by 40%").

5. Alternative Funding Ideas (If Loans Don’t Work)

• Crowdfunding (GoFundMe, NaijaFund)

• Angel investors (pitch to wealthy individuals)

• Supplier credit (negotiate pay-later terms)

Real-Life Example: Ada’s bakery got a N500k loan from LSETF—she repaid it in 1 year and expanded.

Securing a loan in Lagos isn’t magic—it’s strategy + preparation. Know your options, polish your records, and apply wisely.

Have you gotten a business loan before? Share your experience in the comments—let’s learn from each other!