Compare the best options offered on the market and choose the most favorable loan that best meets your daily needs.
Further Below: Our Guide To Personal Loans in Nigeria, Everything you need to know.
Union Bank of Nigeria
- Provides a loan limit of up to N15 million
- Attractive interest rates ranging from1% to 3.75%
- Offers a loan tenure of up to 5 years
- Gives a salary domiciliation of one month
- Offers a wide range of purpose
- Easy application procedures
- Applicants with income are considered
- Fast payout
- Offers both secured and unsecured loans
United Bank of Africa (UBA)
- Get a loan of up to N30 million
- Floating interest rates
- Flexible repayment period of up to 60 months
- A one-time management fee of 1%
- Less strict eligibility criteria
- Offers loans for various purposes
- Fast application process
- Income stability is considered
- Loan disbursement within 48 hours
Standard Chartered Bank
- Offers loans up to N20 million
- Long repayment terms of up to 60 months
- Offers friendly interest rate of 1.08%
- Flexible for short and long-term borrowers
- Does not require collateral or security
- Fast concessions
- Laxer application requirements
- Offers unlimited loan purpose
- Does not charge processing fees
Personal Loans in Nigeria, All You Need To Know:
Read through our guide on how to make necessary comparisons of the best loan offers. FUNDGECKO is focused to guide you through the loan assessment process, from the choosing of an option to the acquisition process. Analyze all the financial aspects you need to know before signing up for an option.
The Current Market for Personal Loans in Nigeria
The current trends impacting loans, rate changes, and other legal and economic aspects that are affecting personal loans are all the subject of extensive research by FUNDGECKO. Find out in a few minutes:
- As the Russian-Ukraine war grows to 9 months now, Nigeria is feeling a stronger punch as there are adverse effects on the economy such as; scarcity of energy sources, and wheat among other commodities supplied by these nations. This has caused a hike in prices and a reduction of subsidies offered to commercial products.
- The World Bank report has also stated that there are future expectations of a high rise in inflation rates which will reduce disposable income and tightening of financial terms as the Central Bank of Nigeria tries to curb inflation.
- The war effects have furtherly caused the absence of investment within and outside the Nigerian financial markets.
- However, the Nigerian banking sector has minimal exposure to the war effects hence their consistency is not affected. The average lending rate in Nigeria as of September 2022 is 12.23% which is a slight increase from 12.1% in July 2022.
How to Compare Personal Loan Offers?
If you’re looking for the greatest personal loan, compare a group of two or three loans that best suit your needs and eliminate the ones with the most drawbacks. You will be guided by this ongoing study to choose the optimal alternative from the list of choices.
For comparison, there are different parameters that a borrower should put in place which include; interest rates attached to the loans, repayment terms, the loan limits offered, the general cost of the loan, commissions, and all other additional conditions. These aspects differ from one lending organization to the other.
How to Use FUNDGECKO to Get Personal Loans
To guide you through the loan acquisition procedure, FUNDGECKO brings together competent financial analysts and other professionals in the field of finance. We start by giving you the information you need about the different loan types, their general characteristics, and the various terms and conditions you should take into account. Users will be capable of making informed choices with the help of this information.
Steps used in FUNDGECKO include;
- Survey through the loan making comparisons between the loan options you are interested in.
- Each loan has a contractual binding form which the borrower should read and understand the conditions of the loan.
- We advise you to present all queries in case you don’t understand anything. This will help other users of this information get a reliable response from our team.
- Once satisfied with the option selected, begin the application process by pressing the “contact” button where you will be directed to the lender’s website.
Share your experience with us in the comment section as it helps other users acquire some information and guidance.
Why Do You Look for Personal Loans?
Banks in Nigeria offer a wide range of products for funding personal loans. Personal loans can be used for various purposes depending on your financial needs. Here are some of the reasons why you might apply for a personal loan in Nigeria;
- Vocational trips
- Emergency financial expenses
- Consolidating financial debts
- Making huge purchases
- Renovation of your home
- Financing your vehicle
- Furthering your academics
- Smartphone purchase
- Weddings and other holiday celebrations
Always have the loan purpose in mind before signing up. This limits confusion when the loan application process begins. Taking a student loan is quite cheaper than taking a personal loan to finance your studies. These considerations make the loan purpose very key in taking loans.
How to Apply for a Personal Loan?
Procedures for applying for loans vary from one institution to another. Others will choose physical applications while some may favor online applications. The majority of organizations also adhere to some primary procedures, which include:
- Look into the loans being offered by various lenders, either in person or online. You can get the best deal by comparing three offers and choosing the one with the best terms.
- Fill out the form’s blanks with as many verifiable facts as you can about yourself and the loan’s terms before submitting it to the organization, whether online or in person (amount, period, and purpose).
- You will receive a pre-approval message for your online application immediately, whereas it will take a few days for your in-person application.
- Choose from scanning, emailing, uploading a photo, or dropping it off at the entity’s office to submit the required papers.
- After your request is approved, you will receive pre-contractual material that contains all the specifics of the loan terms (amount, term, interest rate, commissions, etc.).
- If you agree to the terms of the offer, sign the contract in person or electronically.
- Depending on the agreed-upon terms, receive the funds immediately or within 48 hours.
Requirements for Personal Loans in Nigeria
Although the application process for personal loans is simpler, there are still some standards you must complete to be approved by the lending institution. By doing so, you are recommended to make sure you comply by reading all the necessary materials. Since these items vary from one entity to the next, your loan application will not be approved if the prerequisites are not met. These specifications include;
- Be of legal age. The legal rule states that applicants should be of 18 years and above.
- Be a Nigerian resident. For expatriates, they should present solid proof of their residency within Nigerian borders.
- Nigerian bank account. This creates more ease in funds disbursement.
- Income stability. Most lenders will check your income flow to gain confidence in your ability to repay the loan.
- Creditworthiness. Borrowers should have a positive credit record with previous lenders to increase their chances of eligibility.
When taking out a personal loan, you agree to pay it back within the specified term. So, before applying, you should consider your capacity to pay back the loan in the future. But if you can put off your financial obligations until later, it would be much preferable to avoid taking out the loan.
Documentation For Applying For a Personal Loan
There is other documentation needed to support your application and demonstrate the sincerity of the above-mentioned conditions;
- Bank statement and salary slip to prove your income flow in the past months.
- A valid identity proof. National identification card, driving license, voter’s card.
- Credit clearance certificate to prove your transparency in credit history.
- Loan proposal to show the reason for taking the loan.
- Tax compliance certificate if requested.
Some lenders may require documents not stated above hence ensure you comply with what is required by that specific organization to strengthen your eligibility.
Who Grants Personal Loans in Nigeria?
In past years, banking organizations that provide a wide range of financial goods predominantly sponsored personal loans. Other financial lending institutions have grown over time and are now aggressively expanding the issuance of credit facilities to potential consumers, creating a rivalry with the banks.
Entities that give personal loans include:
- Banking entities
- Private lending institutions
- P2P lending platforms
- Credit-lending Institutions
Funding through Banking Institutions.
- Offers higher loan limits
- Attractive low-interest rates
- A wide range of products
- Favorable loan terms
- Longer repayment periods
- Strict eligibility criteria
- Loans have many attached fees
- Stringent application, time-consuming
- Many related products can cause confusion
Private Lending Institutions
- Flexible repayment terms
- Fast concession
- Seniority is not a factor of consideration
- Flexible repayment terms
- Expensive with high-interest rates
- Creditworthiness is not a determinant
- Unfavorable repayment periods
P2P lending platforms
- Has no application procedure
- Lower cost of acquisition
- Fast concession
- Seamless eligibility requirements
- Disbursement takes a longer time
- Seniority is a factor of consideration
- Very low loan limits
- Risky for the lenders as there is no security
- Hassle-free application process
- Unlimited loan purpose
- Flexible interest rates
- Fast payout
- Cost of loan is high
- Limited scope of purpose
- Complex eligibility procedure
FAQ: Frequently Asked Questions
What is a personal loan?
A personal loan is a quantity of money that the borrower borrows from a bank or other lender to pay it back later with accrued interest and other costs. Interest rates for personal loans are often higher than those on other loans. They make the majority of their payments once every month. The conditions of a personal loan may vary based on the lender and the loan’s objectives, among other factors. For instance, one company might charge higher interest rates while another does so for the same amount at a lower rate.
Additionally, a personal loan taken out to cover travel expenses could be bigger than one taken out to cover college expenses. To find out if a company offers a personal loan for a certain reason, contact them in advance.
Why don’t you give me personal loans?
Personal loans have fewer eligibility requirements than other loan types. However, the lender won’t say why your application was turned down. It’s possible that your creditworthiness is questioned, that you earn less than is required for the loan amount, that the information on your documents conflicts with what you said on the application, and that there are other issues.
It is essential to review your supporting materials and the data you submit on the application to avoid such mistakes. Many candidates are turned down because of their poor credit histories and paucity of supporting documents.
What is the INE form for a loan?
An INE form is a document that you receive from a lender or loan provider. The document contains all loan specifics, such as the amount, interest rate, commissions, payback period, installment payments, and insurance, among other information.
What is the binding offer of personal credit?
The terms and conditions of your chosen credit will be detailed in a document that the lender will give you. This happens before you consent to the lending arrangement. The lender must give you 14 days to decide whether to accept the loan offer or not, but you are free to reject it if you so want.
Can personal loans be paid in advance?
The laws governing credit loans in Nigeria allow borrowers to pay all of their debts including interest and commissions earlier than necessary. Some organizations may incur early repayment penalties, which they disclose to the borrower before the repayment is made.
What if I take out a loan online and then regret it?
You might wish to withdraw your loan application right away. The law permits applicants to withdraw during the first 14 days of the process without incurring any penalty. However, there can be additional fees if you want to have your loan repaid after 14 days.
What happens if I don’t pay back a personal loan?
We advise you to refrain from taking out loans that you are unable to repay because doing so will result in fines and penalties. You will be labeled as a bad creditor and your future eligibility for loans will be limited if you don’t make the required payback to the lending organization. When you require some emergency cash, this will be difficult.
When to Apply for a Personal Loan
You need a personal loan when you need money for a financial need. As a lender can take a few days to finance you, you might need to switch banks and wait a little longer. You’ll be able to secure a loan that perfectly fits your requirements, has reasonable interest rates, and has enough money to finance your project.
The institutions we’ve listed above are reputable lenders you can use to get a loan that’s specially tailored to your requirements and their quirks.
When to Apply for a Fast Loan
An instant loan can be helpful when you need money. The loan application process is quick and doesn’t require many requirements.
In particular, a lot of borrowers develop the poor habit of abusing fast loans without comprehending how this will impact their credit history and capacity to receive credit in the future.
When we are facing an urgent financial crisis, personal loans can be helpful. These loans are beneficial if they improve our financial situation or if they help us reach a higher level of financial stability. But you shouldn’t go after it if you can’t afford to pay it back.
Avoiding bankruptcy is always significant, especially if we don’t know what our future income sources will be. Personal loans should be avoided to protect your credit history and improve your eligibility for other loans. To avoid unnecessary costs, you only agree to a loan after carefully reading its terms and conditions.
About this page, our methodology
What is this page for; This platform’s main goal is to make sure that we give you accurate information on the numerous financial solutions that are accessible and appropriate for your needs. We foray into the financial markets and gather all credible data on the different types of personal loans offered, their conditions for application and repayment, and current patterns. This aids in the development of exposure skills in selecting the best alternative.
Source: Information regarding all regulations governing online consumer credits is derived from Credit Control Authority laws, government portals, and the Central Bank of Nigeria among other referential sources.
Methodology: Through online research and consultation of the official statistics of the aforementioned reference sources, the information in terms of amount, terms, and interest, was acquired.
About Us: FUNDGECKO is a website that compares prices for products with a focus on personal finance and home improvement. We guide how to assess the options, do the proper evaluations, and select the one that has the fewest constraints on your budget. We also provide advice on how to make good financial decisions.
Note: There are no charges attached to any of our services, as FUNDGECKO obtains its income from advertising and its featured products.