Takaful. Islamic insurance is one of the engine blocks of Islamic finance. Islamic economics, Islamic banking/finance and Sukuk i.e. Islamic capital market instrument are other economic engines. Takaful plays a significant role in the growth and development of economic activities The role of Islamic insurance in the growth and development of economic activities cannot be overemphasized, takaful industry in an economy have long ago been recognized as one of the aids for economic growth, Therefore Nigeria as a nation cannot pause tapping the benefit of Takaful especially in its crusade for small and medium enterprises growth and development. This paper explores the models of Takaful for small and medium enterprises growth, an exploratory method of study was adopted, and the paper is largely based on documented research of related literature. From these studies, deductive method of reasoning was used to logically construe the application of Takaful models as a tool for the growth of small and medium enterprises in Nigeria. Finally based on the reviewed works, appropriate takaful models for the growth of small and medium enterprise in Nigeria was drowned, comprising participant’s contribution, donations from philanthropies, government interest-free loans, saving and investment returns from interest-free financial institutions.