How To

How To Get A Loan Without Bvn In Nigeria

Getting a loan in Nigeria often requires having a Bank Verification Number (BVN). The BVN system, implemented by the Central Bank of Nigeria, links people’s banking information across financial institutions for improved identity verification. While the BVN has helped curb identity fraud, some Nigerians find it challenging to obtain loans without this unique ID number.

Fortunately, there are still a few options for accessing loans without a BVN in Nigeria. In this blog post, we’ll explore some of the alternative lending routes available and provide tips for improving your chances of getting approved. Though the process may be more difficult without a BVN, it is still possible for both individuals and small business owners to secure financing from certain institutions.

We’ll cover the key steps and requirements to apply for loans from microfinance banks, fintech lenders, community-based lending circles, and more.

What is a BVN?

BVN stands for “Bank Verification Number.” It is a unique identification number assigned to individuals in Nigeria to enable the country’s banking system to verify and track their financial transactions. The BVN is typically linked to an individual’s biometric data, such as fingerprints and facial features, making it a secure means of confirming one’s identity when conducting banking activities. It was introduced to enhance the security of financial transactions, reduce fraud, and improve the overall efficiency of the Nigerian banking system.

Importance of BVN

• The BVN has helped reduce cases of identity fraud by making it easier to verify identities and track banking details.

• It provides the CBN with improved monitoring of credit risks and transactions in the banking sector.

• BVN has enhanced the availability of credit history data to determine borrower reliability for loans.

• Financial institutions can seamlessly share customer information and comply with Know Your Customer (KYC) requirements.

• BVN supports a more secure and transparent financial system.

The Need For Loans Without BVN

Despite the benefits, many Nigerians still lack access to a BVN due to underbanked rural communities, inactive accounts, and identification issues, among other reasons. Without BVN, they struggle to provide the verification needed to assess creditworthiness for loans.

Individuals in urgent need of funds for medical bills, school fees, funerals, and small businesses with temporary cash flow issues require access to loans. Fintech lenders, microfinance banks, and community schemes provide alternative lending options for those without BVN.

While more difficult, Nigerians still need means to access credit without BVN as a necessity for financial inclusion.

Getting a Loan Without BVN in Nigeria

Below are some of the various ways you can get a loan without BVN in Nigeria.

• Microfinance Banks

• Fintech Lenders

• Community-Based Lending Circles

• Cooperatives

• Government Loan Schemes

• Friends and Family

Microfinance Banks

Microfinance banks provide small, short-term loans to individuals and business owners who may not qualify with traditional financial institutions.

To apply for a microloan without BVN, you will need to provide:

• Valid ID cards such as national ID, driver’s license, or international passport
• Proof of residence using utility bills, tenancy agreement, etc.
• Bank statements for any existing accounts
• References or guarantors to vouch for your reliability
• Collateral like equipment, inventory, etc. depending on loan size

Many microfinance banks will conduct background checks on your business and personal finances to vet your creditworthiness. Being prepared with documents proving consistent income streams and healthy cash flow will strengthen your application.

Fintech Lenders

In recent years, fintech companies have emerged to fill the lending gap in Nigeria through app-based and online loan services.

To secure a fintech loan without BVN, requirements may include:
• Downloading the lender’s mobile app and completing personal/business profile
• Providing government-issued ID for identity verification
• Submitting bank details and account statements
• Having reputable references vouch for you
• Linking active social media accounts

Here are some examples of fintech companies in Nigeria that offer loans without BVN:

NodCredit: This is a mobile loan app that offers instant loans of up to ₦100,000 without BVN. The app is easy to use and only requires a few basic details to apply for a loan. NodCredit loans are typically approved within minutes and the funds are disbursed directly to the borrower’s bank account.

SmartLoan: This is another mobile loan app that offers instant loans of up to ₦200,000 without BVN. The app is similar to NodCredit in terms of its ease of use and quick approval process. SmartLoan loans are also disbursed directly to the borrower’s bank account.

Payday Loan: Payday is a financial institution that offers short-term loans of up to ₦50,000 without BVN. Payday Loan loans are typically approved and disbursed within 24 hours. Payday Loan also offers a variety of other financial services, such as money transfers and bill payments.

QuickCash: QuickCash is a mobile loan app that offers instant loans of up to ₦50,000 without BVN. The app is easy to use and only requires a few basic details to apply for a loan. QuickCash loans are typically approved within minutes and the funds are disbursed directly to the borrower’s bank account.

FairMoney: This is a financial institution that offers a variety of financial services, including loans, investments, and insurance. FairMoney offers loans of up to ₦1 million without BVN. FairMoney loans are typically approved within 24 hours and the funds are disbursed directly to the borrower’s bank account.

One advantage of fintech lenders is leveraging alternative data like mobile money transactions, airtime purchase history, and social media activity to determine credit risk, beyond relying solely on BVN. However, interest rates tend to be higher.

Community-Based Lending Circles

For small, short-term loans, joining community lending circles coordinated by associations, clubs or other mutual aid groups can provide access to financing. Participants contribute money each month which is given as a lump sum loan to members in turn.

To join a lending circle without BVN, you’ll need:
• Strong ties and trust within the community
• Consistent contribution to the lending pool
• Personal guarantors to vouch for you
• Ability to provide collateral if required

This option works best for reputable applicants with community social capital backing up their reliability.


Member-owned cooperatives offer loan and savings products to their members only. To access cooperative financing without BVN requires:

• Registration with the cooperative association
• Making regular contributions to shares/savings
• Participation in the coop’s activities to build rapport
• Finding reputable coop members to guarantee the loan
• Offering personal assets as collateral

Government Business Loan Schemes

Small business owners can also consider government microcredit programs and SME loans to obtain financing without BVN. For instance, the Government Enterprise and Empowerment Program (GEEP) provides TraderMoni and MarketMoni loans from 10,000 to 100,000 naira upon applying and completing a basic business plan.

Other requirements may include:

• Business registration documents
• Evidence of experience and assets
• Reference letters
• Collateral and guarantors if necessary

Friends and Family

For quicker access to small amounts, borrowing from friends, family members or your community can bypass BVN requirements. However, draw up an agreement detailing:

• Loan amount and tenure
• Interest rate and repayment schedule
• Penalties for missed payments
• Collateral/guarantors if applicable

Using social capital and reputable relationships can secure trust-based lending more easily without BVN.

Overcoming Challenges without BVN

Despite the difficulty, taking a strategic approach helps stack the odds for loan approval without BVN:

• Seek smaller loan amounts initially to test creditworthiness
• Build long-term relationships with lenders and community ties
• Maintain consistent income and provide evidence
• Use assets or guarantors to mitigate risk
• Develop clear business plans outlining the use of funds

Frequently Asked Questions

What are the main options to get loans without BVN?

The top options are microfinance banks, fintech lending apps, community lending circles, cooperatives, government loan programs, and friends/family. Each has specific requirements that vary.

How can fintech lenders provide loans without BVN?

Fintech lenders use alternative data like mobile money transactions, airtime purchase history, and social media activity to determine creditworthiness beyond relying solely on BVN.

How can government loan schemes help get financing without BVN?

Government microcredit programs like TraderMoni and MarketMoni provide small loans to SMEs upon application. Business registration, experience proof, and a basic plan are required.

What should an agreement contain when borrowing from friends/family without BVN?

The agreement should outline the loan amount, interest rate, repayment schedule, late payment penalties, and collateral/guarantors required.

What tips can improve the chances of getting a loan without BVN?

Useful tips include building relationships with lenders, maintaining income proofs, leveraging assets/guarantors, and developing clear business plans. Start small to demonstrate creditworthiness.

Is it possible to get any size business loan without BVN?

For larger business loans, most lenders will require BVN for identity verification. Without BVN, it’s best to apply for micro-loans and gradually build up a credit profile over time.


While access to credit comes more easily with BVN, the options above provide alternative channels to secure financing for personal and business needs in its absence. Do your research to find reputable lenders willing to lend based on additional documentation and use cases of responsible borrowing to build your credit profile over time.

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