Wema Bank, one of the leading innovative banks in Nigeria, has made SME loan products that are collateral-free available to support businesses.

A statement from the bank explains that businesses in need of working capital finance could get up to N10 million without collateral to meet their short-term business needs.

Recall that the bank earlier suspended loan repayments for SMEs for three months with effect from April 1, 2020, to mitigate the crippling effects of the COVID-19 pandemic on small and medium scale businesses across the nation.

Says Ademola Adebise, Managing Director of Wema Bank: “For us, we will continue to put the health of Nigerians and the safety of our communities first, In the bank’s quest to enhance reach and accessibility of these facilities, it has made it available to both new and existing customers of the Bank (including those doing business with their personal names),”

What makes the loans unique? There is no collateral involved in this loan. This means that businesses that are relatively new or have a good credit history can still be eligible for the loan.

Even if the interest rate will be higher than a typical bank loan, Wema Bank will make sure your company can handle the payments so as not to be detrimental to your business. The loans can be paid back over 12 months.

Wema Bank says the loan offering is part of its responsibility to support the fight against the ongoing global health crisis.

Who can access the loan? The loan is available for business owners who are in segments such as trade /general commerce, schools, pharmaceuticals, hospitals, clinics, and diagnostic centres.

Wema Bank is offering up to five million naira without collateral and up to 12 months repayment period to businesses that are doing trading or general commerce while school owners can get up to 10 million naira without collateral with 12 months repayment period.

How can the loan be accessed? You can apply if your business falls within the target sectors. The loan is open to new and existing customers of the bank. To get started, simply visit the website at https://www.wemabank.com/smes/sme-loans or send an enquiry to purpleconnect@wemabank.com