Due to a lack of funding, many business concepts have never been put into action. Capital is without a doubt essential to every organization. Without money, you simply cannot carry out your business plan. You require money to launch and run a firm. Some business owners turn to loans because they can't afford the full expense of starting or growing their company. Some loan arrangements are just plain ridiculous due to their exorbitant interest rates and quick repayment schedules. We have made a research on some low-interest loans that would benefit small businesses.

The following financial institutions offer low-interest loans to Micro, Small, and Medium Enterprises (MSME):

1. Standard Chartered Smart Business Loan (SBL): The SBL is an initiative that offers companies low-interest loans without the need for collateral. The maximum loan amount is twenty million naira. The longest borrowing term is two years. Even before their initial loan matures, businesses can still obtain further loans, but this provision applies to those who have been compliant with their loan repayment. This is the link to apply: https://www.sc.com/ng/business/working-capital/smart-business-loan/

2. Union Bank Small and Medium Enterprise (SME) loans: Both registered and unregistered enterprises are eligible for the Union Bank SME loan. Businesses can borrow up to ten million naira. No collateral is required to access this loan. The loan tenure is 12 months. Click on this link to apply: https://www.unionbankng.com/business/sme-banking/sme-loans/#features

3. FGN Special Intervention Fund for SMEs: The federal government of Nigeria has taken the initiative to offer this loan to help small enterprises. The task of leading this initiative is delegated to the Bank of Industry. The interest rate is at a single digit. Here is the application link: https://www.boi.ng/boi-products/fgn-special-intervention-fund-for-msme/

4. Bank of Agriculture (BOA) Loans: BOA provides financial facilities to agricultural entrepreneurs so they can launch new businesses or grow current ones. These loans have low-interest rates. They also provide loans to promising non-agribusiness operators. BOA collaborates with local and state governments to offer leases on land and equipment to agricultural businesses. Here is the link to the BOA loan application form.: https://boanig.com/what-we-offer/agric-loans/

5. Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) Loan: Under the AGSMEIS loan program, NIRSAL provides low-interest loans to owners of agricultural businesses. To be eligible for the loan, entrepreneurs must complete a specified training course through the Entrepreneurship Development Institute (EDI). No collateral is needed. Loan requests for working capital would be paid directly to the entrepreneur while the NIRSAL vendors would supply equipment to those who request the purchase of equipment and machinery. https://agsmeisapp.nmfb.com.ng/

6. CBN Anchor Borrower’s Program: Through partnering with financial institutions, this financing initiative is meant to help MSMEs. Farmers apply for loans from participating financial institutions. The growing cycle of the sown agricultural produce determines the loan tenure.

After obtaining the loan, make sure to use your resources wisely and implement sound cash flow management tactics to expand your company and increase sales so you can repay the debts on time. As a first-time entrepreneur, follow these tips to successfully manage the pressure that comes with the job. https ://smartsmssolutions.com/blog/118-sms-marketing/small-business/1533-first-time-entrepreneur-how-to-deal-with-the-pressure

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Do you have any friends who want to start a business but need a loan? Send them a link to this article.