Compare the best options on the market and choose the one which best adapts to your day-to-day needs.
Further Below: Our Guide to Personal Loans in Burkina Faso, Everything you need to know.
General loan provider in Burkina Faso
- According to world bank statistics, Burkina Faso banks have not been approved to offer personal loans since 2005. The World Bank works with The Central bank of Burkina Faso to offer credits to all types of borrowers.
- These loans are offered on basis of the amount of income a borrower earns monthly.
- All loan disbursements are approved by the Central Bank of Burkina Faso which has sanctioned and is monitoring major lending entries in Burkina Faso.
- The current bank lending rate in Burkina Faso is at 6.25% and has been at that rate since 2021, according to the World Bank’s collection of officially recognized indicators for development. This data on the lending rate in Burkina Faso was provided on December 2022, by the World Bank.
Personal loans in Burkina Faso, All you Need to Know:
Taking out a loan can sometimes be difficult to decide on. As a result, FUNDGECKO is prepared to accompany you on that journey. Read our content for a few minutes to get good advice on the things you should think about before taking out a loan. We will walk you through the things to think about and give you current information about Burundi’s loan options.
The current market for personal loans
We update you on the current circumstances affecting Burundi’s loan market every month. Take a few moments to learn how the current market conditions have changed the credit market and personal loans in particular over time.
- The Financial Inclusion Support Project (FISP) of the World Bank in Burkina Faso gave access to $48.5 million in credit from banks and microfinance institutions for 3,000 borrowers, with women accounting for a third of those borrowers. More than 80% of them were first-time borrowers who would not have been able to obtain this credit without the FISP’s guarantee.
- Due to the Russia-Ukraine conflict on imported goods, the inflation rate in Burkina Faso reached an all-time high of 18.20% in July 2022. This rate is expected to drop to 14% by the end of the year.
How to compare between online loan offers
One way to find the best commodity is to compare several options. By selecting a few personal loan options that you are interested in and comparing the terms, you can land the best deal. However, this is only possible if we are aware of the comparison criteria to use, which include, but are not limited to, loan limits, interest rates, associated costs and fees, and the repayment period.
This criterion varies from one lender to the next. Before choosing an option, borrowers should therefore investigate all of the above-mentioned aspects.
You can choose the best loan option that meets your financial needs by running various simulations based on the purpose of your loan and the offers made by each lender.
How to use FUNDGECKO to get personal loans
At FUNDGECKO, we want to educate our users about everything credit related, including how credits work and what their terms are. With this knowledge, the choice of financial instruments becomes very easy.
Here are the steps to follow on our company’s website.
- Compare for free the different financial options that interest you.
- Take some time to read thoroughly the terms and conditions and learn more about the individual offers.
- FUNDGECKO strives to eliminate any doubts that may arise along the way so that you can choose your preferred consumer loan with confidence.
- Clicking on “Agreement” will take you to the company’s website where our experts will guide you through the application process.
- Our website has a comments section where you can leave reviews, opinions, and comments so that other users can feel confident working with us.
Why do you look for personal loans?
Personal loans are a good option because they can be used for literally anything. They are a good way of funding financial needs quickly. Please keep in mind that just because you can take a personal loan to fund anything, it doesn’t mean you should.
- Abroad travel
- Chile education
- Medical expenses
- Buying consumer durable things
- Fund a start-up
- Debt consolidation
- Unexpected event
- Funding a small business
Before taking a personal loan, have a well-laid-out plan of how you will repay the principal amount and the interest charges as well. Also, assess whether your budget is flexible enough to finance the loan.
How to apply for a personal loan
It is very easy to get a personal loan. Follow the steps below to apply for one:
- Look over the loans that a few different lenders are offering, either in person or online. By comparing three offers and selecting the one with the best terms, you can get the best deal.
- Complete an application form, either online or in person. You save time by applying online rather than going to a store and waiting for hours. Fill in the blanks as accurately as you can about yourself and the terms of the loan (amount, duration, and purpose) before submitting the form to the lender. The form may require you to fill in details about ourself such as name and address, birth date, employment status,
- You will immediately receive a pre-approval message for your online application; if you do a physical application, this message may take a few days.
- You have the option of scanning, emailing, uploading, or dropping off the required documents at the entity’s office. These documents may include social security number, proof of income, rent statements, credit report
- You will be contacted to learn more about the loan offer if your application is accepted by the lender.
- If you agree to the terms, you can sign the contract in person or electronically.
- Within one business day, the funds will be in your bank account.
Requirements for personal loans in Burkina Faso
Banks use eligibility as a tool to decide the amount of money to give to their customers as loans. Factors such as age, income, employment details, interest rates, type of loan, and loan tenure determine your eligibility.
The lender will require the following documents to qualify you for a loan:
- Age: You should be at least 21 years old and no older than 65.
- Employment status-you ought to be employed by a respectable organization or be self-employed.
- You must have a good credit history.
- Have a bank account with the bank you are applying to.
- Credit score- Having a high credit score indicates that your likelihood of default is low.
- You should not have any significant outstanding loan balances because this could mean that you won’t be able to pay for the loans you’re applying for right now or in the future.
Documentation for applying for a personal loan
Documentation acts to verify the information provided on the application form as well as to assess whether you will be able to repay the loan amount. The following documents will be required from you when applying for a personal loan:
You must submit certain documents for your loan lender to accept your application. These documents assist in proving your financial and personal information. Before offering you a loan, the lender will examine them. Although each lender has its own set of eligibility and application requirements, numerous lenders request the same documents. You will be able to better prepare for the application process and increase the likelihood that your loan application will be approved if you are aware of the required supporting documents. Your lender may require the following personal loan documents:
- Proof of income-For employed individuals with regular income must provide salary slips for the past three months are required, while for applicants with irregular income, salary slips for the past twelve months are required.
- An introduction letter from your employer, if you are employed, or business registration documents, if you run a business.
- Credit bureau report—this report should demonstrate that you do not have any outstanding loan balances and that your credit score is good to obtain a loan.
Who grants personal loans in Burkina Faso?
Demand for personal loans is increasing as they are the best option for credit consumption. An increase in demand is followed by an increase in supply to meet demand. As a result, many personal loan lenders have emerged recently. Private companies, P2P platforms, lending institutions, and banks have entered Burkina Faso’s lending market to offer personal loans.
Financing through banking institutions
- Smooth application process
- Competitive loan interest rates
- Long loan terms
- Long terms commitment
- Creditworthiness required
- Increased compliances
Financing through Credit Financial Institutions (CFE)
- Long repayment terms
- Available even in a depression period
- Financial and managerial advice
- Complex processes
- Security requirements
- Rigid rules
Financing from private companies
- Unlimited loan purpose
- Fast application
- Few eligibility criteria
- Higher interest rates
- Affect credit score
Financing through P2P platforms
- Risk diversification
- Unsecured loans
- fewer loans denied
- Simple application process
- Application fees
- No tax benefits
- Additional fees
FAQ: Frequently Asked Questions
What is a personal loan?
A personal loan is an amount of money borrowed from a lender. It usually has a fixed monthly payment, a fixed interest rate, and a fixed term of repayment. The monthly payments make it simpler for you to establish a budget that works for you.
Personal loans are less expensive compared to other forms of credit hence more useful.
Why don’t you give me personal loans?
This is a common situation and complaint from many credit consumers. This can be a serious discouragement if you are looking for a personal loan. The reasons why this may happen include that they could be a problem with your credit score, you have a significant outstanding loan balance, failure to meet basic requirements like residence requirements, and missing information.
What is the INE Form for a loan?
When a lender offers a personal loan, they must provide a form detailing all the terms and conditions of the loan, including amount, term, interest rate, applicable fees, and installment amount. This form is called an INE form.
What is the binding offer of personal credit?
Lenders always make a legally binding offer before signing anything promising a loan, including the terms of the loan agreement. You have 14 calendar days to review and consider alternatives.
Can personal loans be paid in advance?
Some banks allow their clients to repay their loans early with no extra fees while others charge you an early repayment fee. Repaying early reduces the amount of interest you end up paying.
What if I take a loan and later regret it?
Even after receiving the funds, you can cancel the loan offer. However, this only occurs within the first 14 calendar days; penalties will be assessed to the borrower after that point. Make sure you analyze the loan well before applying for it to avoid such occurrences.
What happens if I don’t pay back a personal loan?
If you don’t pay back a personal loan, the loan goes into default right away. This is when a debt is not paid back following the loan agreement. It occurs when you fail to pay your bills on time or miss payments. Your financial profile will suffer as a result of a defaulted loan, which can result in additional fees and interest, debt collection, legal action, and financing issues in the future.
When to apply for a personal loan?
If you need quick cash to cover essential expenses, a personal loan may be your preferred option. Make sure you weigh the advantages and disadvantages of the loan before you take it out. Because a personal loan is a debt, you will have to pay it back over time. You may need to reevaluate the amount you want to borrow or the borrowing itself if you are unable to meet the monthly budget for the loan’s principal and interest payments.
When to apply for a fast loan?
Fast loans, also known as instant loans or quick loans, are offered online by lenders to borrowers. In most cases, the process is paperless, requires less paperwork, and approvals and payments are quick. Apply for a personal loan only for emergencies and when you need urgent funding.
Whether you need to fund a personal project you’ve been planning or cover unexpected costs, personal loans can help. A loan should only be used for a well-thought-out purpose. Also, get a loan that you can pay back. Before signing the contract with the lender, make sure you read all of the terms.
About this page, our methodology
What this page is for: The essential target of this page is to guarantee that we give you precise data concerning the various personal credit facilities that work to solve your problems. We go to the different parts of the financial markets to gather all reliable information about the various types of individual credit that are available, the requirements for applying and repaying them, and their current trends. This aids in the development of exposure skills for selecting the best option.
Source: The information outlined here about personal loans in Burkina Faso and their features has been gotten from statistics of the World Bank, and the Central Bank of Burkina Faso among other referential sites.
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources
About FUNDGECKO: FUDGECKO is a comparison site for personal financial products and home economics products. We compare the terms of available offers to provide quality information to help you find the offer that best suits your wishes and needs.Note: the services we offer are totally free for the user, as FUNDGECKO obtains its income from advertising and its featured products.