Startup loans are one of the main disruptive features Fintech introduced in the financial sector. Startup loans are the startups that provide loan services to entrepreneurs and businesses. A loan is any money borrowed to be paid back usually with added interest. Both businesses and individuals get financial aid through loans.
However, acquiring loans in Nigeria can be tedious. The majority of financial institutions request collateral and other credit facilities to get loans and mostly, the interest rate on loans is high.
The majority of entrepreneurs do not have collateral and do not meet the criteria set up by the institutions, and this is why startup loans sets in.
Startup Loans in Nigeria offer individuals and entrepreneurs loans with little interest rate without asking for collateral.
The startup loan evaluates the creditworthiness of the intending borrower and the potential of paying back within the speculated time before they approve the loan request.
There are several Startup Loans in Nigeria, listed below are some of them.
KiaKia
This startup loan makes use of digital forensics, big data, and machine learning for risk assessment and creditworthiness. Once it is determined, clients can access loans even in millions of naira.
KiaKia has a platform that allows individuals to offer loans and earn considerably from returns while making sure businesses that need loans can access it on time.
Lidya
Lidya is a Nigerian startup loan that provides business loans to both small and medium enterprises. Lidya makes use of its online platform to provide this service.
An individual or business who needs a loan unloads their bank statements to the platform, and the startup makes use of its algorithms and other technology tools to assess risks and creditworthiness before granting the loan.
Lidya analyzes a loan allocation within 24 hours and provides grants to borrowers that deserve it.
PayLater
Paylater is a startup that offers loans of up to 500,000 naira without collateral. Loan allocations are analyzed and approved on or within 3 working days.
Borrowers can access higher loans with PayLater if they repay the previous loans on time. PayLater makes use of its app to offer its service.
Potential clients download the app, set up an account, and then apply for the loans.
Aella Credit
This startup works with the aim that every individual deserves to be awarded for their hard work sometimes, therefore, providing loans almost instantly after an allocation has been made.
Aella Credit offers loans without collaterals but makes use of an algorithm that scores an intending borrower’s creditworthiness. The algorithm considers the socio-demographic factors of the intending borrower.
FastCredit
This startup provides intending borrower loans and requests for guarantors to be held liable should the borrower defaults the payment.
FastCredit Loans offers loans to micro, small and medium enterprises to support business growth. It also provides loans to an individual for various purposes.
The startup has a very low interest rate on the loans offered and the loan application process is completed online making the process faster.
OneFi
OneFi is a startup loan previously known as One Credit makes use of Carbon Mobile App to conduct their loan services.
The range of loan repayment is usually within 3 to 6 months and it provides loans up to 200,000 naira.
OneFi makes use of information clients provide and leverage technology tools to get insight on the client, to decide if to grant the loan or not.
QuickCheck
QuickCheck loan makes use of machine learning to assess intending borrowers’ creditworthiness and risks.
The collaterals offered by the startup have a short lifecycle, expected to be refunded within 30 days from the issuance. The intending borrowers can apply to get up to 30,000 naira.
Specta
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.
