How to Get a Personal Loan Easily in Nigeria

As a Nigerian, sometimes you may be down on cash but need money or funds to take care of urgent pressing needs such as to pay a debt or an imminent medical bill, but you find out that you do not have the money or funds to take care of these situations. This is the part where personal loans come in handy to help you meet the demands of these problems that you need to be sorted out as soon as possible. A personal loan can fit into just about any plans you have in, and asked from paying med bills or debts, it could also be used to plan and pay for a tripped vacation, getting new home appliances, or even for sorting out your school fees as a student.

How to get a Personal Loan

For you collecting or borrowing such money or fund, the only deal with personal loan firms is that you must pay back with interest which is calculated based on factors such as the amount you are requesting, the pay-back duration, and the personal loan company you are doing business with.

Typically, most personal loans company in Nigeria might require you to pay the instalment and usually monthly and stretching throughout one to five years depending on the nature of the loan and the terms of the agreement. If you know how to effectively utilize and take advantage of a personal loan, it can no doubt prove to be a very important resource for you when you are having a financial setback. So, to help you understand personal loans better, we have included this article to give you a detailed definition and overviews of all of the important things you need to know about personal loans, and how you stand to benefit from them.

What Is A Personal Loan?

The term personal loan is used to define any money given out temporarily, or short-term, to a person, or client, by a corporate lending firm, which is to be paid back at a later date usually with interest per the existing terms of the agreement. Generally, corporations that specialize in giving out personal loans might include private lenders, banks, credit unions, P2P lenders, and online or offline market union, lenders. For you as a person, collecting personal loan money or funds can help you accomplish several things that are pressing and urgent for you including; planning a wedding, renovating your home, settling other debts.

What Edge Does Personal Loans Have Over Other Kinds Of Loans?

One of the most striking advantages personal loans have when compared to other kinds of loans is that they are relatively very easy to obtain and their lenders do not often require any collateral on the part of the borrowers. Personal loans are unsecured that erase for you the rigours of having to go through a lot of hassles in the form of protracted and complicated paper works to get your money. It is very easy to start and finish the process in time to still solve your money problem without having to wait for too long.

How Can You Know The Best Personal Loan Lender To Meet?

Businesses offering personal loan services are everywhere in the market but the terms they offer are very different from each other, so it is best to do some background research and get the best quotes on a few of them before going into business with them. This helps you identify the ones that meet your budget, preferences, and needs at any particular time. Regardless of the one you want to pick, there are generally some factors which you must consider before making your choice, and some of the important ones will be outlined here.

  1. Verify Their Interest Rate: This is one of the things you must first have to do before getting loans from these lenders, this is because you do not want to borrow funds and end up paying almost twice as much as you had borrowed within a short duration of time. Verifying interest rates are a must for you, and it is always best to aim for the ones with low-interest fees as this enables you to pay back with ease within the duration of your loan terms, and not have to worry about paying too much above the standard cost value of your loan. It is also vital here to add up all extra fees that may be incurred from penalties, application charges et cetera to have an idea of the maximum you are to fork out in case there is a worst-case scenario.
  2. Find Out The Requirements For Loan Approval: As a client, you might find some personal loan firms are rather too demanding in terms of the requirements you need to be in business with them, and some may be less demanding. Still, the way to go about this is to look for lenders whose requirements are well within what you as a person can provide with ease and not something you can not provide or guarantee. For instance, there is usually a threshold these lenders look out for in their clients, and some of the considerations under this include; history of your credit score, the regularity of your income, and your debt clearance history. So, just go for the ones you feel at ease with, the ones you can easily show the documents they ask for.
  3. Be Sure Of Your Payment Options: It is not enough to just rush and borrow a stack of money because you have some urgent problems to solve, you must always wait to know the payment options that are made available to you by the lender. The normal practice with any legitimate personal loans company is that they go through the trouble to provide you with the different options as regards easier and better ways you can choose to pay back within the terms. So, if you for instance aim to borrow a large amount, it is advisable to search out lenders that offer longer payback terms, and if it is a small amount, go for the ones offering shorter pay-back terms.
  4. Consider The Amount You Seek: The amount you seek is also one of the determining factors to knowing which personal loans firm to walk into. If all you need is a few thousand bucks may be to get your car fixed then you must bear this in mind as you look. This is because some lenders are more suitable for collecting small amounts while others are preferred for a larger amount for bigger projects. Different lenders offer different terms for different loan plans, so you would not want want to walk into a personal loans company that favors big loans requesting for terms to be agreed per the small amount you seek, with chances being that you may be faced with unfavorable terms as regards interest and payback duration.
  5. Research On Customer Support Of The Lender: Making sure that your chosen lender is very active and can give you on-time feedback when you are faced with any issue is very important. If the personal loan services company you choose are responsive to clients’ queries, it is very likely that they are legit and can solve the majority of your problems should they emanate. To verify if your prospective lenders have active customer service and support, you can research by reading up on their ratings and reviews, check their website and test run them by sending a pre-entry email to support and take notice of the duration it takes them to send your feedback, or whether they do not send at all.
  6. Check If They Offer Unique Features That Differentiate Them From The Rest: Some lenders may exist who offer unrivalled features, perks, or benefits so it is always advisable that you screen through the available personal loans services options to see the ones with better value offering. Unique Features do not always work for the benefit of the client, because some of them might come in the form of restrictions payoffs or debt consolidation, so the key thing is to study them and know what works best for your needs.

How Can You Get A Personal Loan In Nigeria

Getting a personal loan in Nigeria is very easy, and has become even better with the development of internet-powered software applications to which most loan companies are subscribed. By simply walking into any financial institution and requesting a personal loan could be all you need to secure one. Apart from banks and financial institutions, there are other kinds of firms offering personal loans services such as a private money lender firm, or a market union money lending services. All of the above are choices that can get you that money that you want to take care of some urgent needs.

Top Five Personal Loans App In Nigeria Offering The Quickest Loans Approval

Several personal loans services companies in Nigeria offer loan services access through their apps. What such loan companies have managed to do is take away the stress or inconvenience of their clients having to hassle over distances, locations, and time to register or carry out transactions. With personal loan apps, borrowing money from lenders can now be done in record time, with ease, and better convenience for both the borrowers and the lenders, which is something the normal traditional location loans firms can not get right. There are so many loan apps available for anyone to use in Nigeria, and some of the best five will be analyzed here.

  1. Lidya: Lidya loan app is arguably one of the best in Nigeria when it comes to offering clients the services of borrowing money for later repayment. Established in 2016, Lydia has and reliably and consistently been serving the purpose of providing credits in the form of funds and money to startups and new businesses that match well within its terms of funds provision. Lidya is far from being local to Nigeria, as it has branches in other top countries such as Poland, Czech Republic, with the United States serving as its headquarters. As per its loan range in Nigeria, Lidya offers new business and interested clients loans to the tune of NGN 150,000 upward, collecting an around 3.5 percent interest rate every month. Lidya offers you the possibility of starting and completing your loan requests all on your smartphone via their website or app.
  2. PalmCredit: PalmCredit is another reliable app that offers loan services to its clients, and it is built around the use of virtual credit cards. By signing up and navigating their mobile app, PalmCredit can loan individuals up to NGN 100,000 within a matter of minutes. With this app, there is no technicality, experience, or too much hassle needed as all you need to do to get your credit loan is to register, wait for approval, and start getting funds or money credited to your account. With PalmCredit, there is also an option of borrowing more or increasing the credit threshold for customers who pay on time.
  3. Renmoney: Renmoney is a Nigerian-based personal loans services company that offers its services to small and medium business enterprises and start-ups to help support them financially for the attainment of their goals. Of course like other fintech, Renmoney has a percentage which they charge for the services they offer. They are typically able to offer small, micro-businesses funds totaling up to around NGN 100,000, charging just over 2.7 percent on Interest fees. Renmoney signup is relatively easy as they will require that you have a working bank account with consistent money inflow as this shows them that you can payback.
  4. Migo: With Migo, it is relatively easy and simple to borrow money and pay it back at a later day. Migo accommodates customers from all works of life and has different loan plans and arrangements for all kinds of people no matter how little or big you intend to borrow. Fr as small as NGN 500 to as much as NGN 500,000, Migo gets you covered provided your details pass their little Al tech check on your account. Still, you do not necessarily need to get collateral of any sort before you are given a loan. Signing up with them mostly just takes you a few seconds via their app, or better still using their USSD code.
  5. Carbon (PayLater): Formerly referred to as PayLater, Carbon would normally require your BVN to be able 5o grant you access to the loan you requested. Carbon is known for its reliability, speed, and consistency in delivering credit loan services to its customers. We understand that with Carbon, you can get up to NGN 20 Million for a 5 to 15 percent interest placement per the terms of the loan agreement. Carbon also covers little transactions involving small money, and you could pay bills, do transfers, and even recharge your sim card on the app.

References

Business Insider Africa. “Best instant personal loan apps in Nigeria – 2021.”

https://www.google.com/amp/s/africa.businessinsider.com/local/markets/best-instant-personal-loan-apps-in-nigeria-2021/lf9jrkl.amp

Investopedia. “How to Apply for a Personal Loan.” https://www.investopedia.com/articles/personal-finance/010516/how-apply-personal-loan.asp

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