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How to Apply for a personal loan in Nigeria 

Apply for a personal loan in Nigeria 

Recap

Applying for a personal loan in Nigeria can be a smooth process once borrowers know the appropriate steps.

Once a borrower decides on the lender and has all the necessary information with the required documentation, they can easily apply for personal loans and increase their chances of success.

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Steps to take to apply for a personal loan in Nigeria

At first glance, applying for a personal loan might look like a difficult task. It becomes fairly simple, however, once a borrower is aware of the steps involved and what each step represents.

These steps include:

  • Determine loan purpose
  • Determine loan amount
  • Find the right lender
  • Check for all requirements
  • Gather all the required documentation
  • Pick up and fill out the loan application form
  • Submit application form
  • Wait for the lender to make a loan application decision
  • Agree to the terms and conditions
  • Receive funds

Determine loan purpose

The first step in any loan application is to determine what the loan is for. This information can help borrowers have a clear picture of how to easily handle the rest of the loan application process.

When the purpose of the loan is clear, it is easy to identify lenders that are experts in granting those types of loans and also eliminate lenders who do not offer the kind of loan that a borrower has outlined for themselves.

Knowing the loan purpose can also help borrowers have a rough guess of the terms and conditions, interest rates, repayment methods, and collateral requirements. Since borrowers can anticipate terms and conditions for loans with the loan purpose, they can also easily figure out the necessary documentation needed to apply for a personal loan.

This in turn can help borrowers choose the best loan product that is best suited to their needs.

Determine loan amount

After the purpose of the loan has been determined, the next step is to define the loan amount.

This is one of the most crucial steps since it involves:

  • Borrowers weigh how much is needed against how much they can comfortably repay
  • Borrowers review their credit history, income, salary, expenses, and credit score to realistically determine how much legitimate lenders will be able to offer them
  • Borrowers anticipating the terms and conditions of the loan
  • Borrowers ensure a higher chance of loan approval since a well-determined loan amount will increase the chances of loan approval and help in underwriting the loan efficiently

Knowing how to effectively determine loan amounts is key to a successful application process.

Find the right lender

Step three in the application process is to find the right lender.

This is usually a very rigorous process that involves hours of research. Borrowers need to spend hours compiling the lenders from financial institutions that can give the loan amount for the purpose that has been determined. Then they compare the loan terms and conditions, interest rates, and other loan features to get the best loan package from the eventual lender that they choose.

Luckily, all of this time and energy can be saved using CreditNigeria.

With CreditNigeria, you can compare reputable lenders and interest rates, and even apply all under five minutes with one single application.

This service comes at no cost to you, so your time and energy are saved for you, for free.

Check for all requirements

When the appropriate lender has been determined, borrowers must ensure that they confirm the necessary minimum requirements and documentation to know if they meet up with the pre-demands of the lender.

This step is very important as borrowers who do not meet up with the requirements of a lender are automatically disqualified and cannot borrow. So borrowers must thoroughly assess all the requirements to ensure that they qualify to make a loan application.

Gather all the required documentation

This step simply involves the borrower making sure that they have all the necessary documents to apply for the loan before they pick up the application form.

Pick up and fill out the application form

Upon checking to see if the requirements have been satisfied, and the documents gathered, borrowers can now proceed to accurately fill out the application form.

Borrowers must ensure that only accurate information is provided as any false information found on the loan application form by the lender during the loan assessment process means automatic disqualification. This information will also show up on a borrower’s credit report and it may make it difficult to access other financial opportunities down the line.

Additionally, filling the loan application with honest and accurate information helps:

  • Lenders accurately judge creditworthiness and determine the best loan package for borrowers
  • Avoid cases of fraud since providing false information can result in legal consequences
  • Provide a smoother loan processing experience for both the borrower and the lender

It is therefore very important to fill the loan application form with correct information to avoid potential legal and financial consequences.

Submit application form

After filling out the form, borrowers can now submit it to the lender of choice. The loan application process now rests entirely on the lender and the decision made on the loan to either accept, decline or propose a counteroffer.

Wait for the lender’s decision

If the decision is negative and the loan application is denied, it may be for one of the following reasons:

  • Insufficient credit score
  • Inaccurate information provided
  • Lack of collateral
  • High debt-to-income ratio
  • No employment or lack of income

It is always important, however, to ask the lender for the particular reason that your application was declined. This can help you rework your future applications to get better results. Multiple loan declines can have a negative impact on your credit score.

If the decision is positive and your loan application is approved, you can move to the next step.

Understand and agree to the terms and conditions

After a borrower receives a positive decision, you will have to read through and agree to the terms and conditions that will govern the period of the loan.

It is always best to have a financially intelligent person to help you read and fully understand the applicable laws before you sign.

Receive funds

The final stage of the application process is when a borrower receives the funds agreed upon by the lender in a bank account of either the borrower’s or the lender’s choosing.

Some lenders are flexible and may allow borrowers to choose the account to receive the loan while others are not, and they specify where the borrower will receive the funds.

Frequently Asked Questions

How long does a personal loan application take?

The time it takes for a personal loan application in Nigeria depends on many individual factors. However, a rough estimate from the time it takes for a borrower to put together and submit a loan application to the time it takes for the lender to review the application and provide funds is usually anything between 1 to 7 days.

Do I need a lawyer to apply for a personal loan?

No. You can apply for a personal loan in Nigeria without the help of a legal practitioner. You might however need a lawyer to help you fully understand the terms and conditions of the loan contract which comes after the approval of the loan application.

Can I apply for a personal loan online?

Yes. All you have to do is locate the website of a reputable lender and request the loan amount you wish to obtain.

Is a personal loan application online better than a physical loan application?

None is better than the other and it entirely depends on what is comfortable for the borrower.

Where do I start a personal loan application process from?

Determine the loan purpose and amount then go to CreditNigeria to compare offers from legitimate lenders. CreditNigeria is an online loan platform that helps borrowers compare offers from multiple lenders with only one application. It is easier to make personal loan applications with CreditNigeria.

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