How do I get a Car Loan in Nigeria?
Conventionally, getting a car loan would involve going to your bank and applying for a car loan to be paid over a period of 12months and up to 60 months in the best case.
If you would like to get a car loan for a brand new car from a bank, you would need to consider a number of factors, before making a decision. The three main factors to consider are the loan amount, the APR and the loan term. You can read more about them here. To get the best deal, you would have to compare the rates from all banks offering car loans.
Rather than going to the different banks for their rates, you can conveniently use a price comparison platform like TopCheck.com.ng to get the best deal. After comparing and deciding what deal works best for you, you can apply and get the car loan process started immediately. Note that most banks would require an equity contribution from the applicant for the car loan. This equity contribution can be anything from 10% to 40% of the total car loan sum.
However, personal budgets may not allow most individuals to get car loans from traditional institutions, owing mostly to the fact that banks only grant car loans to people who are looking to buy brand new cars alone. As a result, those with budgets for "Tokunbo" cars or Nigerian-used cars are not viable for car loans from traditional finance institutions.
For those on a slim budget, all hope is not lost, as they can equally apply for car loans from micro-lending institutions, and at competitive rates. These micro-lender understand the needs of economically active individuals and are less restrictive on what kind of cars they give out car loans for. You can easily get a car loan approved for a "Tokunbo" car or a Nigerian-used car.
Just like the traditional financial institutions, the duration for a car loan can be anywhere between 12 months to 47 months, depending on what kind of car you want to buy. However there are a few conditions for buying a "Tokunbo" car or a Nigerian-used car, like the age of the car and its mileage. The other requirements for getting a car loan include:
- Pay slip for the last 6 months
- Bank statement of account for the recent 6 months (stamped on each page)
- Letter of employment / Confirmation letter / Salary review letter / Promotion letter
- 1 Passport photograph of the Applicant
- Photocopy of Identification Card of the Applicant
- Utility bill
- Executed Lease Application Form
- Curriculum Vitae of the Applicant
- Net Salary of ₦150,000.00 and above
When all factors are considered, getting a car loan isn't as difficult as it may seem. Using TopCheck helps you cut through the red tape and guarantees you get the car loan that you can afford.
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