How to Get a Loan Without Collateral

Collateral is a major barrier to loan availability for many Ghanaians, particularly students, small business owners, and unbanked rural laborers.

Banks and traditional lenders often demand:

• Land title documents

• Vehicle registration

• Fixed deposits

• Salary slips

But what if you don’t own any of these? Can you still get a loan?

Yes.

Thanks to fintech innovation and alternative lenders, you can now access loans without collateral, even if your credit score is poor or non-existent.

This guide walks you through where and how to get such loans safely in Ghana.

What Does “No Collateral Loan” Mean?

A collateral-free loan is a loan you can get without pledging an asset like land or a car.

Instead of asking for security, these lenders rely on:

• Your mobile money transactions

• Regular income or business cash flow

• Group guarantees (in susu and cooperatives)

• Loan history or credit score (if available)

Note: While these loans don’t need physical collateral, they may still require trust, consistency, or a reliable repayment plan.

Where to Get Loans Without Collateral in Ghana

1. Mobile Loan Apps

We discussed this earlier. Most mobile loan apps don’t require collateral. Top picks include:

• Fido Loan

• BloomKash

• Carbon

• MTN QwikLoan

Why it works:
They analyze your phone usage, MoMo history, and repayment behaviour.

Best for: Students, traders, low-income earners

2. Susu and Microfinance Groups

These are savings-and-loans groups where you:

• Save a small amount regularly

• Borrow from the group fund

How It Works:

• No collateral needed

• Members guarantee each other

• Interest rates are low (1–3% monthly)

• Flexible repayment

Examples in Ghana:

• Traditional village susu groups

• “Esusu” schemes

• Women’s cooperatives

• Church savings groups

Trust replaces collateral in these systems.

3. Credit Unions (Cooperative Societies)

Credit unions offer low-interest loans without demanding property.

Requirements:

• Be a member (save consistently for 3–6 months)

• Provide a guarantor (another member)

• Maintain savings with the union

Top Credit Unions in Ghana:

• GNAT Credit Union

• Teachers Fund

• CUA-affiliated unions

• Pentecost Co-operative Credit Union

Benefits:

• Loans of ₵1,000–₵20,000

• 1–3% monthly interest

• No collateral needed if you’ve saved consistently

4. Salary-Based Lenders

If you are a salaried worker (public or private), you can borrow without collateral — just by showing:

• 3 months’ payslips

• Bank statement

• Letter from your employer

Popular salary loan providers:

• Bayport Financial

• Izwe Loans

• Quick Credit

• SIC Life Microfinance

Loan limit: Up to ₵50,000
Interest rate: 2%–3.5% monthly
Repayment: Deducted from your salary

Tip: This is great for teachers, nurses, civil servants, and other stable employees.

But What If I Have Bad Credit?

Bad credit makes borrowing harder — but not impossible.

Here’s how to work around it:

1. Use MoMo Loan Apps

They don’t check traditional credit scores. They use your phone activity and repayment history instead.

2. Join a Susu or Credit Union

They focus more on savings habits and community reputation than credit scores.

3. Take Small Loans First

Start with ₵100–₵500 and repay early. Build a positive track record.

4. Avoid Multiple Loan Apps

Using many loan apps at once can damage your credit reputation — stick to one or two.

Red Flags to Watch Out For

When desperate for a loan, it’s easy to fall victim to scams or exploitative lenders.

Warning Signs:

• Apps that ask for upfront fees or “processing fees” before sending the loan

• Unlicensed lenders promising huge loans instantly

• Lenders demanding passwords, ID pictures, or access to all your phone contacts

• “Loan agents” on Facebook with no official company

Always check if the lender is registered with the Bank of Ghana.

Real-Life Example: How Kweku Got ₵2,000 Without Collateral

Kweku, a barber in Koforidua, needed ₵2,000 to buy clippers and chairs for his shop. The bank said no because he had no property or payslip.

He joined a local cooperative credit union, saved ₵20 every week for 4 months, and applied for a ₵2,000 loan. He got it with a friend as guarantor.

Today, he pays back ₵250 monthly and his business is thriving.

Lesson: You don’t need land or a car — just commitment and a plan.

5 Ways to Get a Loan Without Collateral in Ghana

Borrow Smart, Not Fast

Getting a loan without collateral in Ghana is possible — but it requires smart choices.

DO:

• Join a susu or credit union

• Use licensed mobile loan apps

• Start small and grow your credit

• Always read the terms and plan repayment

DON’T:

• Rush into loans with high interest

• Use shady apps or social media agents

• Borrow for non-essential reasons

When used wisely, loans without collateral can help you start a business, finish school, or survive tough times without putting your property or peace of mind at risk.