Anytime we are down with money, everyone thinks of how to bounce back his or her economy and the best thing that comes to mind is getting a loan to fix out the immediate need, you can get a loan in Nigeria.
Getting a loan sometimes might look scarcer because of the fear of getting the money paid with the interest that comes with it.
Yes, we understand that it might not be good for your finance but it is a quick way to meet a financial demand when there is a need that comes with urgency and no one is ready to help you with money, you can get a loan in Nigeria to solve your financial need.
The next place to look at is the banks or any lender that can support you financially for the time being.
We normally go for a loan to support bills – like school bill, accommodation, business and travel to mention a few.
No lender would want to lend you money for a funeral because it becomes difficult to retrieve such loans.
What your reason for getting a loan might look like, in this article we are going to look at how to get a loan in Nigeria and where you can access loans for your use.
What is a loan?
A loan is money borrowed to be used for a particular purpose and have a duration that the money must be payback to the lender by the borrower.
It usually attracts an interest rate that must be paid by the borrower and the day must not be exceeded.
Read our article on how to get a student loan from the bank to know more about loans.
Types Of Loan In Nigeria
You want to know the type of loan in Nigeria you can go for, let get to see the types of loan we have in Nigeria, the various types of loan offered in Nigeria, will equip you with the right information and help you evaluate your lending need to suit what you want.
There are different types of consumer loan in Nigeria, and some of the most common types of loans offered in Nigeria are;
- Secured loan
- Unsecured loan
- Fixed-rate loan
- Variable-rate loan
- Single payment loan
- Monthly payment loan
- Instalment loan
- Salary advance loan
- Mortgage loan
With a secured loan, the borrower must tender an asset before the loan can be accessed, if the borrower failed to pay; the lender has the right to take over the presented asset.
A secured loan in most time has no limit in the figure, and the interest is usually lower than another loan type, it has a long duration for payback but it is the riskiest, If you fail to pay up, your asset could be someone else’s own in no time.
Unsecured loan: Requires no collateral, with means no assets involved, it has a high interest rate because the lender is at the higher risk of the borrower not paying back, and it is known as a personal loan.
Most time courts are the ones that resolve issues with lenders and the borrowers because no asset is at risk.
Fixed-rate loan: Fixed-rate loans make the interest rate throughout the life of the loan the same and it is the most consumer loans you could find in Nigeria.
Variable-rate loan: The interest rate in variable-rate moves up and down based on the changes of an underlying interest rate index.
Instalment loan: This loan repayment comes with a schedule, often time It works well with a mortgage as the term of the loan may be as little as a few months and as long as many years to finish up the payment.
Single payment loan: This is a loan that allows the borrower to set a date of repayment and pay the whole total sum borrowed plus interest once. It is not a split type of loan.
Monthly payment loan: The borrower of a monthly loan, repay the loan principal and interest with a fixed amount each month, as the scheduled date given to the borrower.
Salary advance loan: this is a short time loan under the personal loan that can be obtained by the employee from the company worked for, or from financial lenders offering salary advance loans; the interest rate is normally high.
Mortgage loan: mortgage give you the borrower to buy a home with the loan, it is a personal loan for home buying.
If you want a home in Nigeria without much stress, go with a mortgage home, you get it through the banks of the country’s National Housing Fund.
With a mortgage loan three things are involved, the principal, interest and collateral and in many cases, when you are given a mortgage, you are expected to take out an insurance policy on the property you have purchased through a mortgage.
In Nigeria here are the types of loan that you can access for anything you need it for. It is in your court to decide on the way that best suits your present need.
7 Best Simple Ways To Get A Loan In Nigeria
You can borrow money from different sources but the easier you can get the money, the riskier or more costly it tends to be. That being said, here are your best options:
1. Online Lender
Online lenders have made access to local n a lot easier in Nigeria, there are trusted and reliable sites that will immediately give you a loan without much stress, sites like renmoney, paylater and palmcredit give you straight access to a loan for your personal use.
These sites offer competitive personal loans and they are faster to secure a loan when compared to banks or credit unions.
Online lenders are speedier because you have your money that same day once you get approval.
2. Cash Advance From a Credit Card
Wow cash advance also works in Nigeria, instead of paying cash with goods and services, you are using your credit card.
If your need isn’t large, a cash advance from your current credit card may be enough to cover it.
The problem is that those who have access to a credit card in Nigeria are limited in numbers; for those who are eligible, you can make use of cash advances.
Almost all the banks in Nigeria offer credit card services but we are used to debit card alone in Nigeria.
Cash advance comes with a fee and it is the fastest way to get money in your hands, though it’s costly.
3. Family or Friends Loan
You have a lot of friends in your circle that can provide you with some financial help through a loan, the same things go with family, and you can approach them to get a loan.
Often time this loan is good to get than any other form of loan because you may not necessarily need to pay any interest rate on the money borrowed.
Though it is good and looks like the safest, you still need to apply some caution when seeking to get a loan from your loved one, because loans between friends and family can create conflict.
4. Payday Loan
A payday loan is a short-term loan that gives you access to a loan when you are down with cash when you are yet to receive your paycheck.
Payday provides a means to get a small amount of money, and the sum given is expected to be repaid with your next paycheck.
To get a payday loan, you must provide your income and a bank account, once that is done, your payday lender will deliver the cash within a very short time into your account.
Sites like GotCash, GT Bank, Access and Polaris are the most popular platforms in Nigeria that offers you a payday loan.
Caution: Payday lending may be costly, let it be your last alternative because of the fee involved.
Banks also give personal loan and you can get your loan with varieties of banks in Nigeria.
This can be good and more secure for most borrowers because they tend to believe in the services provides by banks.
Banks like Access Bank, GT Bank, Zenith Bank, Uba Bank, are good place to get a loan of any kind with banks.
If you are among those who prefer to have a face-to-face loan transaction with your lender, the bank will be a good fit for you.
6. Credit Union
Credit unions are now more widely accessible and this can be the best way to get a personal loan with lower rates and often time the process does not appear too difficult for members.
Credit unions are member-owned nonprofits, this makes it better when compared to the profit lenders when it comes to fees and interest rates.
To get a loan from Credit unions you have to be a member. The membership will grant you the loan which can be done in Nigeria.
7. Peer-To-Peer Lender
Every Peer-to-peer loan is backed by individual or corporate investors who stand as a lender to help another peer member with money without the need of financial institutions involvement.
Peer-to-peer lending marketplaces might be where you will finally have the interest to get your loan, but the barrier to this is that most lenders here normally work with borrowers with good or excellent credit history.
If your credit is good, you will have access to lower interest rates.
Peer-to-peer lender is likely to come with a higher interest, only those with good credit score enjoy a lower rate.
You have 7 different ways you can use to get a loan in Nigeria, but as you are thinking to access the loan remember to think of your repayment and the best option that is best which is not going to land you in longer debt.