Who are the Loan Providers in Nigeria?
There are many different Loan providers in Nigeria these days. We see a transformation from traditional banking loans to microfinance loans and innovative online loan companies.
The Nigeria loan market can be separated among four different types of loan companies:
It is important to understand the difference between those Loan companies, because every loan provider is offering different loan products in terms of interest rates, tenor, loan size, and loan application procedure.
Traditional banking institutions like First Bank, Zenith Bank or Access Bank are good examples of traditional financial institutions that have a big network of bank branches. Banks offer different types of loans, most importantly home mortgages, personal loans, auto loans, business loans, MSME loans. Bank Loans are usually hard to get, because banks are very restrictive in terms of Loan issuing. They need to have a very strict documentation of the loan applicants financials, employment and borrowing history. More about Traditional Banks »
Microfinance banks need to be authorized by the Nigerian Central Bank in order to operate as one. Microfinance Banks, like RenMoney, offer small-to-medium loan amounts to individuals. The loan amounts range from ₦50,000 to ₦3,000,000, while the loan duration usually lies between 3 and 12 months. Microfinance banks are usually less restrictive than traditional banks, but they also require a strict documentation of loan the applicant's financial history and employment. Microfinance Loans are usually issued without collateral. Microfinance Banks are also allowed to offer fixed deposit accounts and savings accounts. More about Microfinance Banks in Nigeria »
Money lenders in Nigeria offer personal loans similar to microfinance banks. Those loans come without collateral and be up to ₦2,000,000 with loan maturities between 1 and 12 months. Money lenders need a special money-lending license and are regulated by the Nigerian Central Bank. Money lenders are usually smaller, privately owned companies, offering flexible loan repayment schemes and attractive interest rates, depending on your financial history. Money Lenders usually operate offline branches as well as online application processes. More about Money Lenders in Nigeria »
New innovative online loan providers are emerging in Nigeria and offer a fast way to get cash. Those providers require a 100% online loan application (or via app), while applicants can instantly see whether a loan has been granted or not. Disbursement of those online loans usually takes place within 24h via bank transfer or you can pick up the cash at a partnering retail bank. Loan amounts usually range up to ₦10,000, while maturity is 1-2 months max. The downside of online loans is that interest rates are comparably higher. More about Online Loan Providers in Nigeria »
Don't worry, getting a loan is easier than you might think and organizing the required loan documents can be done usually in days. Click here to find more about the process of getting a personal loan.
We at TopCheck contribute our part, so that you can make the best decision when you need a loan. TopCheck has collected the interest rates, serving areas, maximum loan amounts and many other variables from the loan providers, so that you can easily see which loan provider is the best option for you.
Example Car Loan: ₦500,000 Loan amount, 1-36 months duration, 1.92% monthly interest rate, 33.55% max APR, ₦1,003,250 total value, ₦51,250 max monthly repayment, Rosabon Car Loan