Let’s face it: getting a loan in Nigeria can feel like climbing a mountain without shoes.

Banks want collateral—land, buildings, cars—or a guarantor with “capacity.” But what if you don’t have any of that? Does it mean your dreams must wait? Absolutely not.

Thanks to NIRSAL Microfinance Bank (NMFB) and its federal government-backed loan programs, you can now get loans in Nigeria without presenting collateral. In fact, thousands of Nigerians—traders, barbers, food vendors, farmers, even students—have already benefitted.

If you’ve ever thought,
“I have an idea or a business, but I need capital to grow,”
then this guide is for you.

I’m going to break it down gently—no big grammar. Just practical, step-by-step instructions to help you access NMFB loans in 2025, even if you don’t have property or connections.

🏦 What is NMFB and Why Is It Important?

NMFB stands for NIRSAL Microfinance Bank. It’s not just any bank—it was created by the Central Bank of Nigeria (CBN) to provide accessible funding to small businesses, farmers, traders, and even individuals.

They’ve rolled out several loan schemes under:

• Economic empowerment
• Youth and women support
• Agricultural financing
• Post-COVID business support

The unique thing about these loans? Most don’t require collateral.

🧑‍💼 Who Can Apply for NMFB Loans Without Collateral?

You don’t have to be a big-name company or own a duplex in Lekki. If you fall into any of these categories, you can apply:

• Small business owners (barbers, tailors, POS agents, shop owners, etc.)
• Youth entrepreneurs, especially ages 18–35
• Traders and artisans in the informal sector
• Farmers and agro-processors
• Individuals impacted by COVID-19 or harsh economic realities
• Students or graduates with viable business ideas

If you can show you have a business or a serious plan, you’re good to go.

💰 Types of NMFB Loans You Can Get Without Collateral

Let’s quickly go over the main types of NMFB loans that don’t need collateral:

1. AGSMEIS Loan

This stands for Agri-Business/Small and Medium Enterprise Investment Scheme. It’s one of the most popular NMFB loans.

• For small businesses and startups
• Loan amount: ₦50,000 to ₦10 million
• Interest rate: 9% per annum
• No collateral, but training is required

2. Targeted Credit Facility (TCF)

Originally designed as a post-COVID intervention fund.

• For individuals and small businesses affected by COVID
• Loan amount: ₦100,000 to ₦2.5 million
• Interest: 5% per annum (now adjusted to 9%)
• No collateral

3. NYIF Loan

Nigeria Youth Investment Fund (NYIF) targets Nigerian youth.

• Age: 18–35
• Loan amount: ₦250,000 to ₦3 million
• Business plan needed
• No collateral

✅ Step-by-Step: How to Apply for NMFB Loan Without Collateral

Step 1: Know the Loan That Suits You

Each loan has its own goal. For example:

• If you run a small business, go for AGSMEIS
• If you’re under 35, go for NYIF
• If you were affected by COVID, try the TCF

You must choose based on your need and eligibility.

Step 2: Prepare the Basic Requirements

You don’t need land or a car, but you still need:

• A valid BVN (Bank Verification Number)
• A working bank account
• A registered business name (especially for AGSMEIS)
• A short and clear business plan or idea
• Valid phone number and email
• For some loans, proof of training or identity (NYIF, AGSMEIS)

Step 3: Attend Required Training (if applicable)

For AGSMEIS, you must attend a CBN-approved training session via an Enterprise Development Institute (EDI). It’s free or low-cost, and it helps you write a simple business plan.

Pro tip: Don’t skip the training. Many people were disqualified for not completing it.

Step 4: Fill Out the Online Application

Once you’ve gathered your details:

• Carefully fill out the loan form
• Use a device with good internet
• Double-check all spelling and numbers
• Use the same names across your BVN, NIN, and bank account

You may be asked for:

• Business type
• Estimated cost
• Loan amount needed
• How you’ll repay

Step 5: Wait for Verification and Approval

After applying:

• You may receive an SMS or email from NMFB
• Some will be called to visit the NMFB branch for further verification
• Others might be invited for a short virtual interview

Then you wait. It can take from 2 to 4 weeks depending on the program and volume of applications.

Step 6: Receive Your Funds

If approved:

• The loan is sent straight to your account
• You’ll also get a repayment plan (monthly or quarterly)
• Some loans are monitored to ensure you use them properly

Avoid misusing the loan—NMFB monitors some recipients and might blacklist you if you divert the funds.

💡 Smart Tips to Boost Your Approval Chances

Want to increase your chances? These proven hacks can help:

• Use matching names across BVN, bank account, and NIN
• Make sure your business is registered with CAC
• Submit a simple, realistic business plan
• Respond to calls/SMS/emails promptly
• Avoid typing errors or wrong account details
• Don’t pay anyone to “fast-track” your application—NMFB doesn’t charge

🚫 Common Mistakes to Avoid When Applying

• Using mismatched identity details (e.g., different names on BVN and account)
• Ignoring emails or SMS from NMFB
• Submitting blurry ID or bank documents
• Skipping mandatory training (for AGSMEIS)
• Expecting “free money”—this is a loan, not a grant

📌 Real Success Story: How Femi Got ₦500K Without Collateral

Femi runs a small laundry business in Osogbo. He applied for the AGSMEIS loan after attending the required training. No collateral, no godfather. Just his business plan and CAC documents.

He got ₦500,000 in under 3 weeks. With the funds, he bought new washing machines and expanded to home pickup services. His monthly income grew by 80%.

If Femi can, so can you.

📚 Frequently Asked Questions (FAQs)

Can I apply for NMFB loan without CAC registration?

Yes, for some loan types like TCF. But for AGSMEIS and NYIF, business registration is required.

Is NMFB loan free or a grant?

No. It’s a loan, but with very low interest rates (5%–9% per annum).

How long does loan approval take?

Anywhere from 1 to 4 weeks, depending on the volume of applications and your documentation.

What if I don’t have a business yet?

You can apply with a viable business idea, especially under NYIF or AGSMEIS—just ensure you attend the training and submit a basic plan.

Can I apply on my phone?

Yes, applications can be submitted via smartphone or PC. Just ensure your internet is stable and your documents are clear.

🎯 Final Words: Don’t Just Wait—Apply Today

The era of needing “connections” or houses as collateral is fading.

Whether you sell akara, run a POS shop, or have a solid idea that just needs a little funding—you can apply for NMFB loans without collateral and change your financial story.

The only thing standing between you and that loan might be your decision to start.

Don’t wait until your business crashes. Start now. Do the work, follow the steps, and watch how doors open.

🔗 Important Application Links (Use After Reading)

• AGSMEIS Loan Portal: https://agsmeisapp.nmfb.com.ng
• NYIF Youth Loan Portal: https://nyif.nmfb.com.ng
• Main Website for All NMFB Loans: https://www.nmfb.com.ng

🧵 Related Posts You Should Read Next

• How to Register Your Business with CAC in Nigeria
• Top Small Business Ideas to Start in Nigeria with ₦100k–₦500k
• Best Government Loans and Grants for Nigerian Entrepreneurs in 2025
• How to Build a Simple Business Plan in Nigeria (Free Template)

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