A personal loan is a type of unsecured loan that individuals can borrow from a financial institution, such as a bank, credit union, or online lender, for various personal needs. Unlike secured loans, personal loans do not require collateral making them accessible based on the borrower’s creditworthiness and ability to repay.
How to get a Personal loan in Nigeria
Step 1: Decide the loan amount you need
Before you apply for a loan, decide on the amount you need to borrow. Consider the reasons you need the loan (for example, unexpected expenses, hospital bills, emergency costs, and so on). You may arrive at an exact figure, or you may have a range of suitable figures which is also fine. Deciding your loan amount early on will help you avoid the hassle of not borrowing enough and reapplying again or borrowing too much and having to deal with a larger burden of debt. If you want to use the loan to finance your business, consider getting a business loan instead.
Step 2: Consider your Options
Once you choose a loan amount, you need to check the websites of some personal loan lenders to get an idea of the rates and terms they offer, and what It will take to get approved by each lender. Gone are the days when securing a loan involved a complicated process. Getting fast personal loans online is now as simple as making an easy application online and getting your approval in minutes. A case in point is Moni, which offers quick personal loans at unbelievable interest rates. With Moni, you can get personal loans of up to (3 million Naira) in minutes. Get started with Moni here.
Step 3: Choose a Lender
Different loan lenders set different approval requirements in their lending applications. Also, different loan lenders will offer different interest rates, payment schedules, and the total amount to be paid back. Weighing your options will help you choose the lender with the most suitable terms for your current financial situation. Once you decide on a loan amount, use a personal loan calculator to run some numbers with the terms offered by each loan provider.
Depending on your financial situation, you can experiment with longer terms for lower monthly payments and shorter terms to pay off the loan faster. Using the personal loan calculator will give you an accurate idea of your weekly, monthly, or quarterly payments. Some loan lenders may charge origination fees of 5-10% of the original loan amount; ensure to include this in your calculations too.
Step 4: Apply for the Loan
After choosing the lender with the best loan offer, start the application process. If you choose an online loan provider, your application will be online. Alternatively, you may need to physically visit a bank, microfinance, or credit union branch. Whether you’re applying online or in person, you will need uninterrupted time to complete the application. You also need to provide basic personal details and information about your income and job.
Read: How to get a fast online business loan in Nigeria
While requirements may differ, the application process for an online loan usually follows these simple steps:
- Start the application process online.
- Provide basic information about yourself, your income, or your job.
- Be prepared to provide information about your guarantor(s) (usually one or two people).
- Get Approved.
- Receive the money directly into your business bank account – usually in 24 hours or less.
Step 5: Create and follow a repayment plan
After the lender approves your loan, you will usually get it within minutes to one or two business days. An important thing to do at this point is to keep track of your repayment due dates to avoid defaults. You may also set up automatic loan repayments to make things easier and ensure your payments are on time.
With Moni, you can get fast personal loans in three easy steps, with easy repayment plans and unbelievable interest rates. Get started here.
