What Is an Unsecured Personal Loan? A Simple Guide
4 mins read
An unsecured personal loan is a personal loan you get without pledging collateral like a car, land papers or a fixed deposit. Instead, the lender decides based on your identity, credit history, income and ability to repay. On Renmoney, eligible customers can get unsecured personal loans with no collateral or guarantor, apply online and see their full terms before accepting.
Back in the days, getting a loan from a Nigerian bank meant one thing: collateral. You had to bring your C of O, your car papers, or two guarantors with "good jobs" who were ready to sign for you. The bank needed something to hold onto in case you couldn't pay back.
No collateral? No loan. And just like that, your plans were put on hold.
Unsecured personal loans changed that story, and with the rise of instant loan apps, more Nigerians now get credit without pledging anything. In this post, I'll explain what an unsecured personal loan is, how lenders can give you money without collateral, and how you can get one on Renmoney.
What is an unsecured personal loan?
It’s quite simple. It’s money you borrow on the strength of your own credit record, without handing over any property as security.
Instead of a collateral, the lender trusts your credit profile: who you are, how you've handled credit before and how much comes into your account. They use these to check if you’re credit worthy and decide whether to lend you money or not.
Because the lender carries more risk without collateral, unsecured loans can cost more than secured ones.
I’ll give you a few examples of how this works in practice:
Example 1: The trader who kept his shop papers
Emeka sells fabrics at Balogun Market and needs ₦2 million to stock up before the festive rush. His cooperative will lend, but only against his shop papers, two guarantors and a three-week wait.
He applies for an unsecured personal loan on Renmoney instead. We review his bank statement and his income and a few other details.
Now, because Emeka has a steady flow of cash into his bank account and sufficient income enough to cover the loan’s repayment, he is likely to get an offer of up to ₦2 million. All of this happens within minutes and Emeka can take the money.
His shop papers stay in his drawer, and his stock lands before December.
Example 2: The creator chasing cleaner shots
Tolu is a Lagos content creator whose phone camera can't keep up with her brand deals. She has been doing brand deals for some time and has past bank transaction records to prove it.
Now, she needs a new iPhone, has ₦800,000 saved, needs ₦650,000 to complete the money, but owns no car or land to use as collateral.
With an unsecured personal loan of ₦1 million on Renmoney, she can get the funds in about 10 minutes. She buys the phone the next day and shoots her planned campaign in crisp 4K.
Her dream didn't have to wait for collateral.
How do lenders decide on a credit loan without collateral?
When you look at both examples, you might see that one thing is consistent: both Emeka and Tolu had good credit profiles. They both had good income sources, good transaction or cash flow records enough to justify the amount they wanted to take and a clean credit history.
These are the financial footprint lenders study to make a lending decision. They start with your BVN and ID to confirm you are who you say you are. Next comes your credit report. Nigeria has three credit bureaus licensed by the CBN: CRC Credit Bureau, FirstCentral Credit Bureau and CreditRegistry.
Banks and other financial institutions have access to these records and must check reports from at least two of them before granting a new credit facility.
Lenders also look at your income, your existing loans and whether the repayment fits comfortably in your budget.
How to get a loan on Renmoney without collateral
Your loan application happens entirely online:
Download the Renmoney app and sign up.
Share your BVN, valid ID and bank details.
Review your offer, including the amount, tenor, repayment dates and total payable.
Accept only when the terms work for you.
Your relationship with us grows with every repayment. Once you fully repay, you can qualify for a higher amount. After some successful repayments, you may also qualify for a top-up loan. We can even buy over a loan you have with another lender, depending on your income.
Is an unsecured loan risky?
You won't lose a car or land, but missed repayments go on your credit record and can follow you to every lender. Borrow only what your income can carry, and contact your lender early if things get tight.
Get an unsecured personal loan that backs your next move
Whether it's stock for the season, a camera upgrade or a rent gap, an unsecured personal loan lets you move on your plans without pledging what you own. Renmoney is a CBN-licensed bank in your corner, with no collateral, no guarantor and clear terms before you commit.
Start your loan application on the Renmoney app, or see your options on our personal loans page. Have questions? Reach our team.
Frequently asked questions
Can I get a personal loan without collateral in Nigeria?
Yes. Unsecured personal loans are approved based on your identity, credit history and income rather than an asset. On Renmoney, personal loans need no collateral or guarantor.
Is a credit loan the same as an unsecured loan?
Not always. "Credit loan" simply means money you borrow and repay over time. It can be secured or unsecured, depending on whether you pledge an asset.
How can I get a higher loan amount?
Repay on time. Once you fully repay a Renmoney loan, you can qualify for a higher amount, and prompt repayments also strengthen your credit record with other lenders.
