Who are the Money Lenders in Nigeria?
Over the last couple of years a variety of money lending companies has emerged. Those money lenders offer loans to individuals, business people and corporations. The loans offered are comparable to the loans offered by microfinance banks, meaning that loans from private money lending companies come without collateral. So in case you are looking for a money lender in Nigeria without collateral, you are right here.
Money lending companies are different than retail banks and microfinance banks, as those offer supplementary services, like bank accounts, saving accounts, or deposits, while money lenders specialize in giving loans to individuals and corporations. They are not allowed by CBN to offer any additional services.
Examples of Money Lenders are companies like OneFinance or C24, who offer uncollateralized loans to individuals. The highest quantity of money lenders can be found in Lagos, but more and more companies are opening branches in other Nigerian cities.
How do Loans from Money Lenders in Nigeria look like?
The loans from money lenders do not differ from the ones offered by microfinance banks. A typical loan from an individual money lender usually ranges between ₦20,000 and ₦2,000,000, while the duration of the loan can be between 1 and 12 months. Also the interest rates from money lending companies are similar to microfinance banks and usually range between 2.83% and 5.50%. The good thing is that you usually don't need to have collateral, but only a steady income and a clean credit history.
What are the requirements?
The good news is that there is usually no collateral needed for loan from a private money lender in Nigeria. The requirements are also similar to the ones from microfinance banks. Among others, you need to be in constant employment for at least 12 months, preferably employed by a private company, you need to earn at least 50k Naira, you need have a certain age and live in the city of the respective money lending company.
For documentation purposes you need to hand in the asked documents, which usually are a proof of employment, utility bill, copy of ID, and some more.
How do I find the right Loan?
n case you are looking for money lenders in Nigeria you do your own research or you can use TopCheck's free Loan Comparison. We did the job for you! We partner with more than 10 money lenders in Nigeria, asked for their interest rates, loan requirements and processes, so that you can easily compare loans online. You can also directly apply online and we push your application to the money lender. Learn more how TopCheck works.
Is a Bank Loan the right choice for me?
It is always important to compare all your options. TopCheck, for instance, offers you a fast, easy and free loan comparison, which allows you to apply directly online for the respective loan provider. In general, banks only give loans to a small minority of Nigerians, namely the upper- and middle class. In case you have a smaller salary, a loan from a microfinance bank or a private money lender would be more efficient.
Example Loan: ₦500,000 Loan amount, 1-12 months duration, 2.83% monthly interest rate, 37.61% max APR, ₦688,050 total value, ₦57,338 max monthly repayment, RenMoney MfB