Compare Personal Loans in Nigeria

Personal Loans in Nigeria

Personal loans in Nigeria are in high demand with the economic situation of Nigeria. Most individuals have to look to lenders and creditors to consistently make ends meet with the ever-increasing inflation rates.

At some point, employees, entrepreneurs, individuals, and businesses alike have to look to personal loans to achieve their goals or meet their respective needs.

The availability of personal loan options in Nigeria means it might be very difficult to get the best loan option without spending hours of valuable time comparing and evaluating.

To save this time and compare loans efficiently, use Credit Nigeria.

Credit Nigeria will compare the loans for you in minutes, which allows you to instantly determine the best loan option. This frees up time for you so you can focus on other important things.

What is a personal loan?

A personal loan is money received from a creditor to be used for personal means. This loan is usually repaid over a specified period with interest.

Personal loans can be either secured or unsecured. A secured personal loan means the borrower will have to provide collateral, while unsecured personal loans do not require collateral.

Since unsecured loans involve no collateral, they have higher interest rates since the lender is taking a higher risk of providing the credit facility.

To obtain a personal loan in Nigeria, you must:

• Completely and honestly fill out the personal loan application form with your details (including your name, address, date of birth, etc.)
• Have a verifiable steady source of income
• Evidence for the payment of utility bills
• Have a Bank Verification Number (BVN)
• Have Valid means of identification
• Have a good credit score

These are the more general requirements to get personal loans in Nigeria. Some lenders might have other requirements (location-specific, income-specific, occupation-specific, etc.) that might not have been included in the list above.

Types of personal loans in Nigeria

Many kinds of loans can be considered personal loans, including but not limited to:

• Home renovation loan
• Medical loans
• Debt Consolidation loan
• Payday loans
• Marriage loans

Generally, any loan used for personal purposes is called a personal loan.

Interest rates to expect for a personal loan

Interest rates on personal loans are usually higher than on other kinds of loans. However, personal loan rates vary depending on the lender and the borrower.

Interest rates are always favourable if the borrower has a good credit history, above-average credit score, steady stream of income, and generally satisfactory creditworthiness.

Personal loan interest rates start from 11.5%, the benchmark set by the Central Bank of Nigeria as the Monetary Policy Rate (MPR). The interest rates for personal loans may rise to as high as 40% depending on the factors measured above.

It is better to use Credit Nigeria to compare loans to get the best interest rates.

What to consider before choosing a personal loan

Considering the right things before choosing a loan can save you a lot of time, energy, and sometimes money. This is because choosing the best personal loan option is as important as choosing a personal loan.

Some of the most important things to consider before choosing a loan include (but are not limited to):

• The terms and conditions of the loan
• The interest rate on the loan
• The Annual Percentage Rate(APR)
• Repayment period of the loan
• Fees on the loan
• All Penalties on the loan
• Reputation of lender
• Purpose of the loan
• The overall cost of the loan

The terms and conditions of the loan

Fully understanding the terms and conditions of personal loans is a vital step to consider before choosing to access a personal loan.

Unfortunately, terms and conditions can be very confusing to understand. This is why it is always good to hire a legal practitioner to help you go through the details of the letter and explain them to you.

This way, you can determine whether the terms and conditions are favourable.

The interest rate on the loan

The interest rate on a loan is also an important factor to consider. Generally, the lower the interest rate, the better the offer is.

Fees on the loan

Some loans come with fees that make the overall cost of the loan high, even if the interest rate is low. It is always best to consider all fees alongside the interest rates, as it allows you to consider if a loan option is the overall best for you as compared to others.

This is why it is always a good move to ask for the Annual Percentage Rate (APR) on the loan, as it gives you an overview of the interest rate and fees on the loan to help you calculate how much you will spend on the loan option.

All Penalties on the loan

You must review and understand the consequences of the penalties on the loan, as it might keep you from paying unnecessary fines. You should also ensure that there are no unfair penalties that favour the lender.

Reputation of lender

You should always check the reputation of the lender on the internet generally. This will give you an idea of whether to borrow from them or not from the feedback you see on the internet.

Purpose of the loan

Before choosing a personal loan, you must be sure you need to take a loan. It is best to consider other options that won’t leave you in debt, such as asking a friend or family member.

If you are sure you need a personal loan, use Credit Nigeria to get the best option for you.

How to get the best personal loan in Nigeria

Use Credit Nigeria to compare loan options in Nigeria so you can get the best option that suits your need at any particular time.

Credit Nigeria partners with reliable banks and lenders to bring you only the best loans. With a simple application, you can shop the loan options in minutes instead of spending hours collating information from different websites.

Most popular personal loan lenders in Nigeria

There are many personal loan lenders in Nigeria. These lenders can only be ranked by popularity since different individuals can get the best options from different lenders depending on their circumstances.

The most popular personal loan lenders in Nigeria include:

• Page Financials
• Renmoney
• Carbon
• Baobab Microfinance bank
• Branch

Conclusion

Personal loans are offered to individuals and businesses in Nigeria to handle various expenses. Banks and other financial institutions offer these loans, typically secured or unsecured.

Individuals and businesses should consider the options before choosing a personal loan In Nigeria.

Credit Nigeria makes it easier to choose the best option by efficiently comparing all the available options in an easy-to-understand way so you can pick for yourself.