Financial institutions are offering Interest-free loans in Nigeria. These loans are otherwise known as grants. See where to find grants and what is required.
If you get a loan of ₦100,000 with the term of 1 month, the fee will be ₦5,000 and your total payment will be ₦105,000.
If you get a loan of ₦1500 with the term of 4 weeks, the fee will be ₦1,190 and your total payment will be ₦2690.
If you get a loan of ₦1,000 with the term of 30 days, the fee will be ₦700 and your total payment will be ₦1,700.
If you get a loan of ₦500,000 with the term of 6 months, the fee will be ₦20,000 and your total payment will be ₦520000.
If you get a loan of ₦100,000 with the term of 30 days, the fee will be ₦3,500 and your total payment will be ₦103,500.
Yes. Interest-free loans do not have any interest added on to the primary loan. Therefore, depending on the loan lender, these loans could either be repaid or not.
No. While some standard criteria may still apply, some free grants need to prove a sustainable business idea or desperate need before giving much attention to an application.
Not all of them. There is usually a process for these loans, long application forms have to be filled out online, and the best applications are selected. However, some lenders still pass these selected entrepreneurs' tests before approving their loan requests.
These loans are otherwise known as grants. They are loans that have no interest; depending on the money lender, you will or will not pay back this loan. It might seem like financial institutions are not offering interest-free loans. However, some banks offer these loans and require that the borrower has a strong credit record with a profitable business.
There are many government grants in Nigeria given or made accessible to individuals and businesses without paying Interest. If the loan is repaid, it could be a long-term or short-term loan.
To be eligible for interest-free loans, you must fulfil certain requirements. Therefore, it is crucial to check for the specific requirement of your loan lender and consider if you meet the set standards before applying for a long. Here are the common criteria for Interest-free loans.
These are standard criteria, but the requirements for your preferred loan lender could differ.
There are risks involved in every transaction, including this seemingly harmless loan. The loan lender is losing in this situation as no interest is being added to the loan, and it might not even be paid back.
Another risk is that charges apply to interest-free loans in Nigeria. These charges include an establishment fee, an accounting fee, dishonor, and payment fees. These fees could become very high and amount to a percentage of the received loan.
Popular financial institutions that provide Interest-free loans can be used to avoid falling into the hands of fraudsters who do not give grants. Here is a list of three credible loan lenders or platforms that provide free grants:
Grofin is a private institution that aims to support entrepreneurs with funds or grants they can use for their small or medium-scale businesses. The grants are limited to specific economic sectors like Agriculture, education, healthcare, energy, water, and environmental recycling, but this list can be expanded in the future.
Non-repayable grants ranging from 100,000 to 1.5 million dollars are available. To apply, you must, however, be at least 18 years old and present some form of identification or other evidence proving you are a Nigerian.
African Entrepreneurship award
The BMCE bank of Africa leads this program to provide mentorship programs and grants to eligible business ideas. The platform is mainly for two sectors: Innovation and sports.
You can access non-repayable grants agreed on by the program leaders every year, but some criteria apply. For example, your idea has to be geared towards technological development, you must be at least 18 and have a Nigerian identity card.
This platform gives you access to interest-free loans between 50,000 USD and 250,000 USD. You must be an entrepreneur in the education, research institution, business membership organization, or private sector and be profit oriented. The loan is not repayable and only accessible to Nigerian citizens above 18.
Other Interest-free loan lenders provide loans that must be repaid within 24 hours, and these loans could be used to buy products or build houses and not just for businesses. Use any of the above-mentioned platforms to access an interest-free loan and stop worrying about interest rates.