Personal Loan Requirements | Apply For Loans In Nigeria

personal loan requirements

Nigeria is home to several financial institutions, which provide individuals with access to requests for loans. Undoubtedly, there are several means on how to apply for personal loans in Nigeria. However, you must meet the personal loan requirements.

In order to qualify for personal loans there are some requirements and criteria that need to be met such as age limits, particulars, minimum work experience, and others. Also, to qualify for personal loans in Nigeria, you must earn at least 120,000 Naira and be a permanent resident in Nigeria. The most common reason to take a personal loan is to consolidate assets or debts.

Nonetheless, in this article, we will provide a comprehensive guide on what a personal loan is, how you can apply for personal loans in Nigeria, and what the personal loan requirements in Nigeria are.

What Is a Personal Loan?

personal loan requirements
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A personal loan is a type of unsecured credit that allows a person to borrow a fixed amount of cash and pay it back in the form of installment credit. The Central Bank of Nigeria classifies loans by sector, or purpose, which includes construction, trade, government, services, and agriculture. There are different types of Loans in Nigeria, however, Personal loans are more flexible to use. There are several types of Loans in Nigeria, including:

  • Installment Loans
  • Secured loans
  • Unsecured loans
  • Auto loans
  • Commercial Mortgage loans.

What Are The Benefits Of Personal Loans In Nigeria?

Personal loans are very flexible to use, most companies rarely place restrictions on how you can use the money. The use of personal loans is endless. Also, Personal loans have flexible repayment options, most companies offer longer repayment options from 12 to 85 months.

In Nigeria,

Most personal loans do not require collateral because most personal loans are unsecured. If you are applying for an unsecured personal loan, you get the advantage of borrowing a huge sum without any collateral. Although there are secured personal loans depending on the circumstances.

Personal loans are different because they come with a set installment repayment rate. That is, you can borrow a fixed amount, get an EMI tool online to help you make a fixed monthly payment, and figure out when you will be able to complete payments.

Are Personal Loans Safe?

Yes! Personal loans can be safe depending on the lender and the precautions involved. Although, There are some risks that you should consider before deciding whether you want to apply for a personal loan or not. Some of the risks are late payments, credit risk, and credit checks.

So, If you are planning to consider a personal loan, ensure you choose a reputable lender and consider using applications from the financial marketplace. Also, Personal loans have higher interest rates compared to other forms of credit loans. Personal loans are unsecured without any security or collateral.

What Are The Requirements For Personal Loans In Nigeria?

There are several requirements for personal loans in Nigeria that must be met to qualify for the loan. Here are the basic requirements for personal loans in Nigeria:

1. Bank Verification Number (BVN)

personal loan requirements
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The Central Bank of Nigeria has made BVN a compulsory requirement for eligibility for personal loans in Nigeria. A Bank Verification Number is a number that is given to bank customers in Nigeria to protect and secure the banking transactions of that particular customer. It is a mandatory requirement for personal loans in Nigeria.

The BVN helps to reduce fraud, enables customer access to future credit facilities, and also increases the efficiency of banking operations.

2. Proof Of Income

Proof of income is also another mandatory personal loan requirement when applying for a personal loan. It often determines the suitable loan package that can be offered to the borrower.

Proof of income serves as a safeguard for banks, it ensures the bank that they lend money to individuals who have reliable sources of income. Commonly accepted proof in Nigeria includes Salary slips, Tax returns, Bank statements, Proof of business ownership, and Letter from Employment status

3. Proof Of Identity

Proof of Identity is compulsory for personal loan requirements. It helps to identify customers’ verification to prevent fraudulent transactions.

Lenders request proof of identity from interested borrowers mainly to verify that borrowers are who they say they are to prevent fraud. The basic details that are needed may include Name, Phone number, Birth Certificate, Address, Email address, and Valid identity information

The age of a loan applicant is important to determine the financial experience of the applicant which can help lenders make decisions. It is another mandatory personal loan requirement in Nigeria.

The minimum age requirement for lenders is 18. Most lenders set between 18 to 21 years above for personal loan requirements.

5. Utility Bills

personal loan requirements
Source: utilitybillform.com

Utility bills help to reduce the risk of lending money to individuals that may lead to fraud. Utility bills are required to confirm the residential addresses of applicants.

Accepted bills include Telephone bills, water bills, Electricity bills, GOTV/DSTV cable receipts, LAWMA bills, and Rent Agreement

6. Acceptable Credit History

A standard credit history is a compulsory personal loan requirement in Nigeria it provides lenders with valuable information that shows the overall risk involved in giving out loans. A credit history helps to determine creditworthiness.

There are other Uncommon requirements that some lenders may ask for before giving out loans. They are not very common, unlike the general requirements. Some of these requirements include Collateral, Zero debts, Location, Business ownership (6 months), Minimum stream of income, and Domiciled Account.

How To Apply For Personal Loans In Nigeria

If you are thinking about applying for a loan for your personal use, you should know that a personal loan has very flexible repayment terms that do not require collateral or other security measures.

Here are the basic steps on how to easily apply for a personal loan in Nigeria:

1. Confirm Loan Eligibility

Checking the loan eligibility is the first step to getting a personal loan. Once you know how much you need, confirm if you are eligible or not. There are some personal loan eligibility calculators online that can help you know how much you can borrow as a personal loan.

2. Determine Your Requirements

Determine why you need a personal loan, and the fixed amount you need and check if it will cover what you need the loan for.

3. Calculate The Monthly Installment Fee.

A personal loan is a loan that allows the borrower to pay install-mentally. Make use of EMI tools online to calculate your correct loan repayment every month. You can also modify your tenure and interest rate to match your monthly income.

4. Approach Your Bank

The next step to apply for a personal loan after doing the basic procedure is approaching your bank, either through their online website or visiting a branch to complete the application.

5. Submit Necessary Documents

Know the exact documents that are required for a personal loan and submit them. The documents that are usually required are income proof, identity proof, and address proof. Submit copies of your personal loan documents to your bank. After following all the necessary steps and procedures, wait for the money to be deposited into your account.

What Is The Legal Age To Apply For Loans In Nigeria?

The minimum age requirement for lenders is 18. Most lenders set between 18 to 21 years above for personal loan requirements.

What Are The Accepted Utility Bills For Personal Loans In Nigeria?

Accepted bills include Telephone bills, water bills, Electricity bills, GOTV/DSTV cable receipts, LAWMA bills, and Rent Agreements.

Conclusion

Personal loans are very easy to apply for, because, It does not matter whether you want to get funding through a bank or credit union. Or even if you prefer to handle the process online it is still easy to apply. This article has provided a guide on how to apply for personal loans in Nigeria and the loan requirements.

Reference

  • creditnigeria.com
  • pathward.com
  • Investopedia.com

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