Last Updated on May 8, 2023
When it comes to financial emergencies, getting a quick loan can be a lifesaver. In Nigeria, there are various options available for obtaining an instant loan. However, with so many lenders and loan types, finding the right place to get an instant loan can be a daunting task.
In this article, we’ll explore the different places you can get an instant loan in Nigeria and what you need to know before applying.
See: Best Instant Online Loan in Nigeria
Where to get Instant Loan in Nigeria?
1. Commercial Banks
One of the most common places to get an instant loan in Nigeria is through commercial banks. Banks like GTBank, First Bank, Access Bank, and Zenith Bank offer different types of loans such as personal loans, salary advances, and overdrafts.
Personal loans: This is a type of loan that allows you to borrow a fixed amount of money and pay it back over a set period with interest. Most banks require you to have a salary account with them and meet certain eligibility criteria to qualify for a personal loan.
Salary advance: This type of loan is offered to employees who need a short-term loan to cover unexpected expenses before their next payday. The loan amount is usually a percentage of their monthly salary.
Overdraft: An overdraft is a loan facility that allows you to overdraw your account up to a certain limit. The interest is charged on the amount you overdraw and the repayment period is usually within 30 days.
Also See: Top Instant Loan App without BVN in Nigeria
2. Microfinance Banks
Microfinance banks are financial institutions that provide financial services such as loans, savings, and insurance to low-income individuals and small businesses. In Nigeria, microfinance banks such as LAPO, Accion, and Fortis MFB offer instant loans to their customers.
Microfinance banks are known to offer quick loans with flexible repayment terms. However, the interest rates on their loans can be higher compared to commercial banks.
3. Loan Apps
With the advent of technology, it is now possible to apply for an instant loan online. Renmoney, Carbon, and Branch offer quick loans.
You can get an instant loan in Nigeria without collateral from legit loan apps in Nigeria like Renmoney, Carbon, Branch, Fairmoney and a host of other lending apps in Nigeria.
To apply for a loan with an online lender, you need to visit their website, create an account, and fill out an application form. The loan amount and repayment terms vary depending on the lender.
4. Credit Unions
Credit unions are member-owned financial cooperatives that provide financial services to their members. In Nigeria, credit unions such as the Nigerian Police Credit Union and the Nigerian Air Force Credit Union offer instant loans to their members.
To be eligible for a loan from a credit union, you must be a member and have contributed to the union’s savings scheme for a certain period. Credit unions offer low-interest loans with flexible repayment terms.
5. Peer-to-peer (P2P) Lending Platforms
Peer-to-peer (P2P) lending platforms connect borrowers with investors who are willing to lend money for a return on investment. In Nigeria, peer-to-peer lending platforms like Paylater and Kiakia connect borrowers with lenders.
To apply for a loan on a peer-to-peer lending platform, you need to create an account and fill out an application form. The interest rates on loans from peer-to-peer lending platforms vary depending on the lender.
What You Need to Know Before Applying for an Instant Loan in Nigeria
Before applying for an instant loan, here are some things you need to consider:
Interest rates: The interest rate is the amount charged by the lender for borrowing money. Different lenders offer different interest rates, so it’s important to compare rates before applying for a loan.
Repayment terms: The repayment term is the period within which you’re expected to repay the loan. Different lenders offer different repayment terms, so it’s important to choose a repayment term that works for you.
Eligibility criteria: Lenders have different eligibility criteria for their loans. Before applying for a loan, make sure you meet the lender’s eligibility criteria.
Loan amount: Different lenders offer different loan amounts. Before applying for a loan, make sure the loan amount you’re applying for is sufficient to meet your needs.
Collateral: Some lenders require collateral before they can give you a loan. If you don’t have collateral, you can consider applying for a loan from lenders that offer unsecured loans.
Processing time: The processing time is the period within which the lender will review your application and disburse the loan. If you need the money urgently, it’s important to choose a lender that offers quick loan processing.
In conclusion, getting an instant loan in Nigeria is possible with various options available. Whether you choose to apply with a commercial bank, a microfinance bank, online loan apps, credit union, or peer-to-peer lending platform,
It’s important to consider the interest rates, repayment terms, eligibility criteria, loan amount, collateral, and processing time before applying. With the right information, you can make an informed decision and get the instant loan you need.
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