Top 5 Reasons Why No Bank Will Give You Loan In Nigeria

A critical and possible avenue for generating capital is through bank loans. Today, Nigerian banks that offer loans have tightened their fist as lending rates rise because of the recession and subsequent inflation ravaging the economy. Therefore, it’s getting tougher by the day to get loans from banks if you are not a big shot.

This doesn’t mean banks don’t grant loans in any respect. You just need to meet their requirements. Besides this, there are other reasons why your loan request can be denied. In this article, we take a look at some of the reasons why no financial will give you credit facilities in Nigeria.

Reasons Why No Bank Will Give You Loan In Nigeria

  • You Have No Business Plan

Your business plan is the key that opens the door with the purpose to entice traders and ultimately get a financial institution loan. This is whilst your commercial enterprise is still at the idea stage. Your bank will no doubt ask for your business plan and if it is not available, it is likely your loan application will be rejected.

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A business plan also includes important details such as sales budgets, profits statements, growth plan and marketing plan. Without these essential elements, you’ll have little success in getting the time of serious investors, and no bank will give you a loan in Nigeria.

  • Not Creditworthy

Banks will always scrutinize your books regardless of how much you need as a loan. If you have got too much money owed or you aren’t creditworthy, your loan application will be rejected. This is due to the fact your debt profile will continue to upward push and at the stop, you will be not able to settle the debts.

  • Zero Growth plan

Business growth is one of the conditions banks will note before providing you with the loan. No bank in Nigeria will create credit facility for any business that has zero growth plans.

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Growth plan shows how you intend to grow your business over the years, including income projections and expansion plans.

  • Unverifiable Source Of Revenues

Bank will study your source of finance before they approve your loan to make sure that you can make the minimal repayments. Your application may be declined if the financial institution is not convinced you can repay the loan because the financial institution cannot confirm your source of revenue with the information you provided.

  • Inadequate Collateral

When applying for loans, banks regularly takes a look at the business proprietor’s credit score if the commercial enterprise isn’t mounted enough to have constructed up a sufficient business credit score.

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Unless enterprise owners are inclined to, in my view, assure the loan or pledge personal property valued at the amount of the loan as collateral, the probabilities of getting authorized for a loan without collateral are usually narrow.


No financial institution in Nigeria will truly provide a loan to any individual or business organization that they assume is not susceptible to pay back the loan, or that falls in any of the categories above. Therefore, before going to a bank to seek money, ensure that you are creditworthy and that you have done the necessary preliminaries.

Failure to do these or get all the composite documents in order will result in ultimate rejection of the loan application.

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