Startup loans are one of the disruptive features introduced in the financial sector by Fintech.
Startup loans are those startups whose service offerings are loans to businesses and entrepreneurs.
A loan is any money borrowed that will be paid back mostly with added interest. Loans give financial aid to both businesses and individuals.
However, acquiring a loan can be quite a daunting task in Nigeria. Most financial institutions require collaterals and other credit facilities before a loan is issued and when eventually issued interest rate is high.
Most entrepreneurs don’t have collateral nor do they meet the criteria set up by these institutions, and this is where startup loans come in.
Startup Loans in Nigeria offer entrepreneurs and individuals loans with very little interest rate without even seeking collateral.
The startups however evaluate the creditworthiness of the intending borrower and their ability to pay back especially within the stipulated time frame before the approval of the loan requests.
There are several Startup Loans in Nigeria, listed below are some of them.
This startup loan uses big data, machine learning, and digital forensics for creditworthiness and risk assessment.
Once this is determined, the client can access loans even in millions of naira.
KiaKia has a platform that enables individuals to give out these loans and earn considerably from returns while also ensuring businesses that need loans to get access to loans on time too.
Lidya is a startup loan in Nigeria that offers loans to businesses both small and medium enterprises. Lidya uses its online platform to provide this service.
An intending borrower uploads their bank statements to the platform and Lidya uses algorithms and other technology tools to assess the creditworthiness and risks before the loan is granted.
Lidya analyzes a loan application within twenty-four hours and then grants it to deserving borrowers.
This startup loan offers up to five hundred thousand naira loans without collateral.
Loans are reviewed and approved on or within three working days.
With PayLater, borrowers can access even higher loans if they make in-time repayments of previously acquired loans. PayLater uses an app to offer its services.
The potential clients download the app, set up an account, and then can go ahead to apply for
This startup works with the mantra that everyone deserves to take credit for their hard work sometimes, hence, the instant access to funds when a loan application is made.
Aella Credit provides loans without collaterals but uses an algorithm that scores the creditworthiness of an intending borrower. This algorithm takes into consideration the intended borrower socio-demographic factors.
Loans granted in this startup require those intending borrowers are backed by guarantors who will be held liable should the borrower default on payment.
FastCredit Loans are offered to micro, small and medium enterprises to support business growth. Also, it offers individual all-purpose loans too.
FastCredit has a very low-interest rate on their loans and the loan application process is done online which hastens the entire process.
Another startup loan, OneFi is formerly known as One Credit also uses the Carbon Mobile App to conduct their loan services.
The loan repayment range is usually within three to six months and intended borrowers can access up to two hundred thousand naira.
OneFi uses information provided by the client and leverages other technology tools to get insights on the client, to decide whether or not to grant loans.
This startup loan uses machine learning to assess the creditworthiness and risks associated with an intended borrower.
The collaterals offered here have a short life cycle, duration is on or before thirty days of issuance, and intended borrowers can access up to thirty thousand naira.
A startup loan owned by Sterling Bank PLC offers their services online too. Loans up to five million naira can be accessed without collaterals. Specta offers both personal and business loans.
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