Running a small or medium-sized business in Nigeria today is no small feat. Between rising costs, currency pressure, and stiff competition, access to funding can be the difference between scaling confidently or simply surviving.
The good news? 2025 offers more SME financing options than ever before. Banks, digital lenders, microfinance institutions, and government-backed programs are rolling out products designed specifically for Nigerian businesses.
This guide breaks down the best SME business loans in Nigeria right now — the features, interest rates, pros, and cons so you can choose the financing that truly supports your growth.
An SME loan is a business financing product created for small and medium enterprises. These loans typically range from ₦500,000 to ₦100,000,000+, with interest rates between 10% and 30%, depending on:
Lender type (bank vs. fintech)
Loan size
Your banking history
Collateral availability
Business age and revenue
Whether you're expanding, purchasing equipment, hiring staff, or managing cash flow, the right SME loan gives your business room to grow.
Below is the fresh, optimised breakdown of the best-performing SME loan providers this year — based on speed, cost, flexibility, and approval rate.
BOI remains Nigeria’s strongest government-backed lender for businesses that want affordable financing with longer repayment periods.
Loan Amount: ₦2m – ₦50m
Interest Rate: 10–12% per annum
Repayment Tenure: 3 – 7 years
Best For: Manufacturing, agriculture, tech infrastructure, light production
Downside: Longer processing timeline
BOI is ideal for structured businesses looking for stability, not speed.
Access Bank provides a portfolio of tailored products designed for registered businesses with consistent cash flow.
Loan Amount: ₦1m – ₦20m
Interest Rate: 18–22% annually
Approval Time: 5–7 business days
Requirements: Collateral + business documentation
Best For: SMEs with at least 6 months of operations
Access Bank stands out for transparency and nationwide availability.
Renmoney offers fast, digital-first SME financing with approval times under 24 hours.
Loan Amount: Up to ₦100m
Interest Rate: From 3% monthly
Processing Time: 24 hours
Collateral: Not required for smaller loans
Best For: Retailers, wholesalers, service providers needing quick capital
Its biggest appeal is simplicity — no long paperwork, no long queues.
Zedvance prioritises accessibility with flexible weekly or monthly repayment schedules.
Loan Amount: Up to ₦50m
Approval Time: <48 hours
Collateral: Not needed for smaller amounts
Best For: SMEs with seasonal cashflow fluctuations
AIICO offers structured, tailored financing perfect for SMEs that need industry-specific support.
Loan Amount: Up to ₦50m
Approval Time: 1–2 weeks
Collateral: Required
Best For: Medium-sized businesses seeking long-term capital
Mutual Benefit supports businesses needing smaller loans with simpler collateral requirements.
Loan Amount: Up to ₦10m
Processing Time: 3–5 days
Unique Advantage: Sector-specific loan programs
Best For: New or small businesses scaling gradually
Designed for businesses with existing supplier or distributor relationships.
Loan Amount: Up to ₦10m
Special Advantage: Faster approvals for partners
Transparency: Clear, predictable loan terms
| Lender | Loan Amount | Interest Rate | Processing Time | Collateral |
|---|---|---|---|---|
| BOI | ₦2m – ₦50m | 10–12% p.a. | 2–4 weeks | Minimal |
| Renmoney | Up to ₦100m | From 2.8% monthly | <24 hours | No (small loans) |
| Zedvance | Up to ₦50m | Competitive | 24–48 hours | No (small loans) |
| AIICO | Up to ₦50m | Competitive | 1–2 weeks | Yes |
| Mutual Benefit | Up to ₦10m | Competitive | 3–5 days | Flexible |
To increase your chances of approval for SME business loans:
Ensure Proper Business Registration - Register with CAC and obtain all necessary licenses
Maintain Good Banking Records -Most lenders review the last 6–12 months of business cash flow
Prepare a Solid Business Plan - Include revenue projections and a clear use-of-funds breakdown.
Organize Financial Statements - Balance sheets, P&L, and tax records make a huge difference.
Build a Good Credit History - Even small defaults affect approval and pricing
If traditional SME loans don’t fit, consider:
Equipment Financing (for machinery + tools)
Invoice Financing (cash flow unlock from unpaid invoices)
Microfinance Loans (easier entry points)
Government Grants (non-repayable)
Overdrafts (short-term flexibility)
Many SMEs mix these options for better capital stability.
Securing the right SME business loan can significantly impact your company's growth trajectory. When choosing among the best SME loans in Nigeria, consider not only the interest rates and loan amounts but also repayment flexibility, processing time, and additional support services offered by the lender.
Non-bank lenders like Renmoney, Zedvance, AIICO, and Mutual Benefit are increasingly becoming preferred options for many SMEs due to their faster processing times and more flexible requirements compared to traditional banks.
Ready to compare options and find the perfect financing solution? Visit nairaCompare's business loans comparison tool to explore and compare the latest SME business loans offerings tailored to Nigerian businesses.
CAC certificate, bank statements (6–12 months), business plan, financial statements, valid ID, and collateral documents if required.
Yes, through BOI programs, microfinance banks, and fintech lenders like Renmoney and Zedvance that accept limited documentation.
Anywhere from 24 hours (digital lenders) to 4 weeks (traditional banks).
Use nairaCompare’s Business Loan Comparison Tool to:
✔ Compare interest rates
✔ Check eligibility instantly
✔ View loan charges transparently
✔ Apply to multiple lenders in minutes