Getting a COVID-19 Loan in Nigeria: How to Apply and How to Check Approval

The COVID-19 pandemic has hit Nigeria hard, both from a public health and economic perspective. As businesses struggle and unemployment rises, many Nigerians are looking for financial assistance to help them through these challenging times. One option available is COVID-19 loans from banks and microfinance institutions.

However, applying for and obtaining a COVID-19 loan can be complex and confusing, with many factors to consider.

What is a COVID-19 Loan?

A COVID-19 loan, also sometimes referred to as a pandemic loan, is a type of financial assistance made available by banks, microfinance institutions, and government agencies specifically to help individuals and businesses cope with the economic downfall of the COVID-19 pandemic.

The key characteristics of COVID-19 loans in Nigeria include:

  • Below-market interest rates: Rates are usually lower than typical personal or business loans to increase affordability.
  • Flexible repayment terms: Lengthier repayment periods and grace periods before payments are due to help alleviate short-term cash flow issues.
  • Less stringent eligibility: Qualification requirements are loosened to allow higher-risk borrowers access to funds. Fewer documents and faster approvals are also common.
  • Purpose-specific use: Funds must be used for approved COVID-19 impacted expenses like payroll, rent, supplies rather than general purposes.
  • Government backing: Most loans come with partial credit guarantees or interest subsidies from groups like the Central Bank of Nigeria or Bank of Industry to encourage lending.

The overall goal is to provide vulnerable individuals and businesses quick access to low-cost capital needed to help weather the economic effects of the pandemic. Let’s explore the application process and requirements in more detail.

Who Qualifies for a COVID-19 Loan in Nigeria?

While COVID-19 loans aim to help more people, there are still some basic eligibility criteria applicants must meet:

  • Nigerian citizens or businesses registered in Nigeria
  • At least 18 years old for individuals and 1+ years in operation for businesses
  • Have proof of identity and valid means of income/business operations
  • Not in bankruptcy or with non-performing loans from other institutions
  • For businesses – provide 2+ years of verified financial statements/tax returns where applicable

Beyond these universal conditions, each lender may have their own targeted customer profiles and loan purposes. For example, larger banks could focus on viable SMEs while microfinance banks assist low-income individuals or micro-businesses. Government programs also prioritize sectors severely impacted, like travel, hospitality, etc.

It’s best to check directly with potential lenders about any other customer-specific or industry-specific qualifications for their COVID-19 lending products. Eligibility requirements are relaxed compared to ordinary loans but not completely nonexistent.

How to Apply for a COVID-19 Loan in Nigeria

Now that we understand the basic criteria, let’s look at the step-by-step process for officially applying for a COVID-19 loan:

Research Available Options

Check websites and branches of major commercial banks, microfinance institutions, and government development finance programs for live COVID-19 loan offerings. Terms vary, so compare interest rates, requirements, and eligibility across lenders.

Select a Suitable Lender

Based on your profile, circumstances, and loan needs, choose an institution whose product fits you best. Make sure you fully understand the product details before proceeding.

Gather Required Documents

Typical documents needed include:

  • Proof of identity (international passport, driver’s license, ID cards)
  • Business registration papers or tax ID
  • Bank statement for last three months
  • Most recent tax returns (businesses)
  • COVID-19 impact declaration

Fill Out the Online/Physical Application Form

Provide personal and loan details accurately as per guidelines. Most lenders have streamlined digital forms for convenience.

Submit Documents and Application

Packages and deliver the required papers and completed forms to the lender via approved channels. Some accept digital uploads to speed review.

Await Application Processing and Verification

The lender will conduct necessary checks like CBN verification which can take 1-4 weeks, depending on volume. Be available for any follow-up queries.

Receive the Decision and Collect Disbursement if Approved

You’ll be notified of the result via call, email, or SMS. For approval, proceed to complete legal/security documentation and get the loaned amount.

How Long Does it Take to Get Approved for a COVID-19 Loan?

Timeframes can vary between lenders, but here are some general guidelines on COVID-19 loan approval turnaround times in Nigeria:

  • Streamlined products from large banks – 1-2 weeks for approval
  • Microfinance banks and smaller lenders – 2-4 weeks
  • Government programs through development finance institutions – 4-6 weeks

Faster approvals are possible if documentation is properly completed and provided upfront without errors. Late or incomplete submissions will delay the process. Economic and social factors like unemployment rates also impact how busy different lenders are.

A few tips that may help expedite the approval process:

  • Apply for a loan amount you are very likely to repay based on financial capacity
  • Provide verifiable income/business documents without anomalies
  • Have zero non-performing loans on credit history
  • Use recommended or referred channels where available

While timelines aim to be short due to emergency needs, some flexibility is advised due to high volumes and anti-fraud checks. But reaching out to the lender for status updates is reasonable if it has been over six weeks with no decision.

How to Check Your COVID-19 Loan Application Status

Once submitted, you’ll want to follow up on the status of your COVID-19 loan application. Here are the best ways:

  • Call the applications hotline number provided on the lender’s website/branches
  • Send a polite status update email to the specified applications address
  • Check any customizable online portal after registering your application reference ID
  • Visit the branch in person (following safety protocols) to kindly inquire

Be sure not to excessively pester customer support. Only follow up after a reasonable processing period has passed, like 2-3 weeks. Most lenders will contact you directly by call/email once a decision is made.

If approved, you should receive disbursement details. If declined, ask for clear reasoning and how to appeal the outcome if there are addressable issues with the application. This feedback helps strengthen future attempts.

With diligent status tracking within reason, you balance getting a timely response with avoiding disruptions to the lender’s workflow. Prompt follow-through is still key once approved too.

Common Reasons for Rejection of COVID-19 Loan Applications

While COVID-19 lending aims to be more flexible than standard loans, there are still some core issues that can cause applications to be denied. Here are the five main reasons for rejections in Nigeria:

  1. Incomplete or Inaccurate Documentation – Missing important papers or information leads to an inability to fully verify details.
  2. Poor Credit History – Defaults or late repayments on other loans negatively impact eligibility.
  3. Unsustainable Income Levels – The demonstrated earnings are insufficient for the proposed loan amount and tenure.
  4. Erroneous Application Information – Incorrect personal or business details raise suspicion and compliance issues.
  5. Ineligible Purpose – Attempting to access funds for uses outside the intended COVID relief goals.

If rejected, find out precisely which criteria caused it from the lender and see how these shortcomings may potentially be remedied. With some adjustments, it may be possible to reapply successfully next time.

Tips for Improving Your Chances of Approval

To boost chances with future COVID-19 loan applications, focus on these critical best practices:

  • Provide complete documentation as promptly as possible
  • Accurately disclose your full financial situation and capacity to repay
  • Choose a suitable loan tenure and amount given income and obligations
  • Explain precisely how funds will be used for pandemic relief needs
  • Clear any adverse credit history issues in advance if possible
  • Consider applying with a referrer like existing client for potential recommendation
  • Develop a good repayment discipline on current loans while applying for new ones
  • Address even minor deficiencies from prior denials thoroughly before reapplying

Being fully transparent, carefully selecting amounts and resolving any past errors will serve you well in obtaining timely approval for COVID support through banks and programs.

Alternatives If Your COVID-19 Loan Application is Declined

What options are available if your primary COVID-19 loan request gets rejected? Here are a few paths worth considering:

  • Re-apply with the same lender after addressing issues that caused prior denial
  • Try a smaller loan amount or longer tenure with the same or different institution
  • Contact a credit repair or resolution expert to tackle issues like defaults
  • Seek grants, subsidies or reliefs from government agencies and nonprofit organizations
  • Consider borrowing from family or friends as a last resort
  • Explore crowdfunding platforms to raise funds from online donors
  • Look into emergency loan apps and services as another alternative

It’s not the end of options even with a rejection. With some adaptions to your request or secondary sources of funding, assistance may still be available.


Here are some frequently asked questions about COVID-19 loans in Nigeria:

Can I get a COVID-19 loan if I have a low credit score?

While a poor credit history may still impact your eligibility, COVID-19 loans generally have more lenient credit requirements than standard loans. Addressing any defaults on your record proactively can strengthen a repeat application.

How much interest will I be charged on a COVID-19 loan?

Interest rates vary by lender but are typically lower than usual personal or business loans, often between 5-15% per annum. Rates also depend on loan tenure, purpose, and your credit profile. Confirm interest charges with potential lenders.

What documents do I need to apply for an N50,000 COVID-19 loan as an individual?

Typical documents required for an individual COVID-19 loan of N50,000 include:

  • Filled loan application form
  • Recent passport photograph
  • Valid ID (international passport, driver’s license, voter card)
  • Current bank statement
  • Employment letter or business documents

How long is the maximum repayment period for COVID-19 loans?

Most lenders allow repayment periods of 6 months to 2 years maximum depending on the loan purpose and amount. Some offer the flexibility of moratorium periods before the first payment too.

What if I’m unable to repay my COVID-19 loan?

The inability to repay is always a last resort. Communicate challenges early, and lenders may consider restructuring terms. Late or non-payment, however, will damage your credit profile and ability to access future loans.

Leave a Reply

Your email address will not be published. Required fields are marked *