There are certain types of business loans that come with no collateral attached. These types of loans are what majority of people refer to as “Collateral Free Business Loans”. Obviously, one of the main reasons why people back off from loans is the inclusion of collateral.
It’s worth stating emphatically that, not all loans come with collateral. In Ghana, there are not less than five (5) financial institutions that give collateral free business loans. You will come across these financial institutions as you move forward in this post and perhaps, know their terms and conditions before you proceed on to access any of their loan packages.
About Collateral Free Business Loans
Meaning Of Collateral Free Business Loans
Collateral is used to mean an asset (eg. real estate) that a lender accepts as security for a loan. The lender can be the financial institution giving out the loan. The collateral serves as a form of security for the lender. This implies that, if the borrower fail to pay up their loan payments, the lender can take hold of the collateral and sell it to recuperate part or all of its losses.
Another name for Collateral Free Business Loan is “Unsecured Business Loan”.
An unsecured business loan or a collateral free business loan is a form of loan that doesn’t require any collateral (property and assets). This type of loan can be accessed by both business and non-business owners.
Advantages Of Collateral Free Business Loans
Here are some advantages of unsecured business loans:
- The Duration Of The Loan Application Process Is Short.
- Collateral Is Not Involved.
- No Risk Of Losing Your Collateral.
Disadvantages Of Collateral Free Business Loans
Here are some disadvantages of unsecured business loans:
- They Usually Come With Higher Interest Rates.
- In Some Instances, Qualifying For These Loans Becomes Harder.
- Loan Amounts Are Usually Not Extremely Huge.
Collateral Free Business Loans In Ghana
Now, go through the list below to find out more about the various collateral free business loans in Ghana.
Oze SME Loan
Oze implies business growth. The institution offers lots of financial aids to their clients. A typical example is their loan package.
Oze SME Loan is meant for small businesses. There is no stress involved in accessing loan from Oze. At the comfort of your office or home, your loan offer will be ready within some few minutes. You can accomplish this even with your smartphone without necessarily heading over to their office.
With just these three (3) steps below, you are good to go.
- First and foremost, you are required to create a free account with Oze. The link has been provided below.
- Secondly, you need to fill out their simple application form.
- Lastly, you then have to link your bank account.
In short, the link here will send you straight to the registration page of Oze. Just supply the required details and you can proceed.
NB: You have to provide Oze with 3 months of your bank or mobile money statements.
Currently, Oze have branches in both Ghana (F 175/4 Oshie Street Ako-Adjei, Accra, Ghana) and Nigeria. For further enquires, you can contact their Ghana branch on: 054 575 0467.
MTN Qwik Loan
MTN Qwik Loan is an innovational financial resolution by afb Ghana and MTN MoMo. This package renders quick and convenient loan to subscribers of MTN MoMo. This loan is paid into your MTN Mobile Money wallet.
In other to access another loan, you are required to pay any outstanding loan amount on the due date. Take note, late payment accrue some charges.
To get the MTN Quick Loan, follow the simple steps below:
- On your phone, dial *170#.
- You Then Select Option 5 (financial services).
- Again, Select Option 3 (loans).
- Finally, Select option 1 to register for free or option 2 to view terms and conditions.
Find out more about Fido Loan here.
Find out more about Zidisha Loan here.
PayLater is another great collateral free business loan you should try. Please read more about PayLater Loans here.
Please find out more about Carbon Ghana here.