Precious AdebayoBest Commercial Bank with Low-Interest Loan 2025/2026
Introduction
Access to affordable credit remains one of the most important drivers of economic growth for individuals and businesses in Nigeria. In 2025/2026, many Nigerians—both private individuals and entrepreneurs—are actively searching for commercial banks that offer low-interest loans. These loans can be used for business expansion, education, housing, agriculture, or personal emergencies.
However, interest rates in Nigeria have fluctuated significantly due to inflation, monetary tightening by the Central Bank of Nigeria (CBN), and the overall cost of borrowing. Despite these challenges, some banks continue to offer competitive loan rates with flexible repayment plans and easier eligibility criteria.
This guide provides a comprehensive analysis of the best commercial banks with low-interest loan rates in 2025/2026, loan types, eligibility criteria, repayment periods, and the application process. It also includes expert recommendations to help borrowers make informed financial decisions.
Overview of Loan Interest Rates in Nigeria (2025/2026)
In recent years, Nigeria’s lending environment has undergone several changes. The Central Bank’s Monetary Policy Rate (MPR) currently stands around 26–27%, which affects how banks determine their lending rates. Despite this, several commercial banks have developed targeted loan products with subsidized or reduced interest rates, especially for salary earners, SMEs, and entrepreneurs.
The average interest rate for unsecured loans in Nigeria ranges from 18% to 30% per annum, depending on the bank, loan type, and risk level. Some banks, however, offer microloans, salary loans, and business credit lines with lower rates—especially those backed by government intervention funds or partnership schemes such as the CBN’s SME Development Fund or the Agricultural Credit Guarantee Scheme (ACGSF).
Best Commercial Bank with Low-Interest Loan 2025/2026
Criteria for Choosing the Best Bank for Low-Interest Loans
Before choosing a bank, it’s important to consider several key factors:
-
Interest Rate (Annual Percentage Rate – APR): The total cost of the loan, including fees.
-
Loan Tenure: The repayment period. Longer tenures often reduce monthly payments but increase total interest paid.
-
Collateral Requirements: Some banks offer unsecured loans, while others require assets as collateral.
-
Repayment Flexibility: Early repayment options and penalty conditions.
-
Eligibility Criteria: Whether you need a salary account, guarantor, or business registration.
-
Processing Time: How quickly the bank disburses approved loans.
With these in mind, let’s explore the leading Nigerian commercial banks with the best low-interest loan offers in 2025/2026.
1. Guaranty Trust Bank (GTBank)
GTBank remains one of Nigeria’s top banks for low-interest personal and SME loans. Its Quick Credit product is designed for salary earners and self-employed individuals.
Key Features:
-
Interest rate: 1.33% monthly (about 16% annually)
-
Loan tenure: Up to 12 months
-
Maximum loan amount: ₦5 million
-
Collateral: Not required
-
Processing time: Instant approval for eligible customers
Eligibility:
-
Must have a GTBank account (salary or business)
-
Good credit history
-
Regular monthly income
GTBank’s loan portal is available 24/7 through the GTWorld App or Internet Banking, making it one of the fastest loan platforms in Nigeria.
2. United Bank for Africa (UBA)
UBA’s Click Credit Loan is one of the most accessible consumer loan products in Nigeria, particularly for salary earners.
Key Features:
-
Interest rate: 1.58% monthly (approximately 19% yearly)
-
Tenure: 12 months
-
Loan amount: Up to ₦5 million
-
No collateral required
-
Instant disbursement within minutes
Advantages:
-
Available through UBA mobile app and USSD (*919#)
-
Designed for both public and private sector workers
-
Quick approval process
UBA also offers SME loans at subsidized rates for registered small businesses, especially those in trade, retail, and manufacturing.
3. Access Bank Plc
Access Bank offers multiple loan types including Payday Loans, Salary Advance, SME Loans, and Vehicle Finance.
Features:
-
Interest rate: 18% – 25% per annum depending on loan type
-
Tenure: 3–36 months
-
Minimum documentation required for digital loans
-
Collateral-free options for salary earners
Access Bank’s W Power Loan for women entrepreneurs is particularly notable, offering reduced rates under CBN-backed gender inclusion schemes.
4. Zenith Bank Plc
Zenith Bank’s Salary Advance Loan and SME Loan packages are designed to support individuals and businesses with flexible repayment structures.
Loan Features:
-
Interest rate: 1.5% monthly
-
Tenure: Up to 24 months
-
Loan amount: Based on salary or turnover history
-
Processing time: 48 hours
Eligibility:
-
Must maintain a Zenith Bank account for at least 3 months
-
Proof of employment or business registration
Zenith also partners with government agencies to provide low-cost agricultural and manufacturing loans under intervention programs.
5. First Bank of Nigeria
First Bank’s Personal Home Loan, Salary Loan, and SME Connect Loans are among the most trusted in the banking sector.
Loan Details:
-
Interest rate: 15% – 22% per annum
-
Tenure: 12 – 60 months depending on loan type
-
Loan size: ₦50,000 to ₦10 million
-
Collateral: Required for large loans
Benefits:
-
Long repayment period for property or education loans
-
Access to CBN intervention funds for SMEs
Best Commercial Bank with Low-Interest Loan 2025/2026
6. Fidelity Bank
Fidelity Bank offers one of the most affordable SME financing options in Nigeria.
Features:
-
Interest rate: From 14% annually under CBN intervention programs
-
Tenure: 6 months to 3 years
-
Focus: MSME and agribusiness sectors
-
Collateral: Flexible based on risk rating
Their Fidelity Fast Loan Portal allows quick online application, with disbursement within 24–72 hours.
7. Union Bank of Nigeria
Union Bank’s Personal Loan and Payroll Loan targets individuals and salary earners.
Loan Details:
-
Interest rate: 1.7% monthly
-
Tenure: Up to 60 months
-
Collateral: None required
-
Processing: 24–48 hours
Union Bank also offers special SME funding through the Development Bank of Nigeria (DBN), which provides single-digit interest loans to qualified businesses.
8. Ecobank Nigeria
Ecobank’s Salary Advance Loan and SME Loan Facility are accessible through their digital platform.
Features:
-
Interest rate: 1.5% – 2% monthly
-
Tenure: Up to 12 months
-
Collateral: Not required for salary loans
-
Application: Via Ecobank Mobile App
They also participate in regional agricultural development funds for smallholders and agro-processors.
9. Polaris Bank
Polaris Bank’s Salary Advance and Business Support Loans are designed for fast approval and easy repayment.
Features:
-
Interest rate: 18% annually
-
Tenure: 12 months
-
Quick disbursement
-
Collateral-free for payroll accounts
Polaris also supports the CBN Targeted Credit Facility (TCF) program for small-scale businesses and individuals affected by economic fluctuations.
10. Stanbic IBTC Bank
Stanbic’s Personal Loan and Asset Finance Products are some of the most structured in the Nigerian market.
Features:
-
Interest rate: 15% – 23% annually
-
Tenure: Up to 60 months
-
Available for both salary and self-employed individuals
-
Flexible repayment through auto-deductions
Government and CBN-Backed Low-Interest Loan Programs
-
CBN Anchor Borrowers Programme (ABP): For agricultural producers.
-
AGSMEIS Loan: Up to ₦10 million at 9% per annum for entrepreneurs.
-
Nigeria Youth Investment Fund (NYIF): ₦250,000 to ₦3 million for youth entrepreneurs.
-
Development Bank of Nigeria (DBN): Provides wholesale funding to banks for on-lending at single-digit rates.
These programs are disbursed through commercial banks at interest rates between 5% and 9% per annum, making them some of the most affordable in Nigeria.
Tips for Securing Low-Interest Loans in 2025/2026
-
Maintain a good credit score and consistent income record.
-
Use salary domiciliation accounts with your lender.
-
Apply for CBN-supported or government-backed loans.
-
Avoid loan sharks or unregulated lenders.
-
Compare APR (not just base interest rate) before signing.
Conclusion
In 2025/2026, the best commercial banks with low-interest loans in Nigeria include GTBank, UBA, Access Bank, Zenith Bank, Fidelity Bank, and First Bank. These banks combine affordability, convenience, and digital accessibility to serve both individuals and small businesses.
Borrowers are encouraged to review all terms, confirm eligibility, and understand repayment conditions before applying. With proper planning and responsible borrowing, Nigerians can access affordable credit that supports business growth and financial stability.
