Olamide Famuwagun

You would agree that being unemployed can be very harsh on your finances. In this situation, it is very important that you are prudent with the little you have. However, no matter how careful you are with spending, there are some unprecedented events that will require you to spend some cash. In this situation, you might not be able to cater to these needs because you are out of work. The good news is, you can access some loans for unemployed in Nigeria. This article provides you with details about loan options you can leverage and everything you need to know.

Can you get a loan if you have no income?

As we have earlier mentioned, it is very possible to get a loan if you are unemployed. However, to qualify for a loan with any lender, you will need to have an excellent credit history. In addition to this, you must have a good credit score and an alternate source of income. In the case of an alternate source of income, they want to use this to determine if you can meet up with the loan repayment or not.

How to get Loans for unemployed in Nigeria

If you are unemployed, one of the easiest ways to secure a loan is through quick loans. We also know this loan option as short terms loan. With the advancement in Technology, there are many Fintech companies that offer loans you can leverage. This loan option offers flexible repayment options and you can access them at most 24 hours after application. To access these loan options you can choose any of these financial institutions. Furthermore, these loan options require no paperwork or collateral before you can access them.

Aella Credit:

This is an app-only platform that you can use to access quick loan options. They design this loan offering for Nigerians to access more funds. This ranges between #1,500 to 700,000. The repayment option is flexible, with an interest rate of 4%-29% monthly. Aella credit loan has a maximum tenor of 2 months.

Carbon

Since its inception, Carbon has grown to be one of the most reliable when it comes to accessing quick loans in Nigeria. Once you meet up with all their requirements, you will be able to access the loan you request in minutes. All you will need is to provide your Bank verification code and other details for them to determine your loan worth. Their app. Is available for Android and iOS. The repayment for loans with carbon is flexible and the interest rate ranges from 5%-10%.

Branch

As an unemployed, branch is also another platform with which you can access quick loans. You can access loans from #100,000 to #200,000 within 24 hours of application. Their interest ranges from 15% to 34% depending on the amount they offer you. To access this loan option you do not need any collateral or any source of income.

QuickCheck

This financial organization provides you with loans ranging from #10,000 to #500,000. For a start, they will offer you #10,000 if they approve your application. They do this to test your trustworthiness and also to see if you can meet up with repayment. After your first loan, if you meet up with their expectations, they will then increase the amount you can access. One good thing with them is that the earlier you pay back the lower your interest rates.

FairMoney

Fairmoney is a lending organization that is licensed to provide its customers with short-term loans ranging from #2,500 – #150,000. To access their loan offerings, you will need to provide them with your Bank Verification Number and your debit card. In addition, you will also need to provide them with other details such as your residential address and phone number,. After this, they will determine if you qualify for their loan or not. FairMoney interest rate ranges from about 5% – 28% with a tenor of a month to 26 weeks.

Conclusion

Unemployment is a big problem all over the world. The competition in the job market is as fierce as ever. Irrespective of this, as an unemployed you need to survive. This is why there are several financial organizations offering several loan options to cater to your needs. Their loans are lightning-fast and they will disburse into your account once you meet up with their requirements.

Many are choosing the self-employed path in Nigeria today, especially since is one of the best ways to financial freedom. The emergence of freelancers, and the existence of tradespeople, and investors point to the fact that being self-employed is becoming dominant. However, in such a category, getting a Self-employed loan in Nigeria might be inevitable because of the unstable guarantee in your income.

This article gives a general overview of a self-employed loan in Nigeria and brings to you everything you should know.

Who is a self-employed person?

This is an individual who does not hold a job for any specific employer. As a result of this, he or she, therefore, does not get paid on a salary or consistent bases. As a self-employed individual, you trade with businesses directly and earn income from such transactions. Many times, the employer does not withhold taxes, therefore it becomes your responsibility.

As a self-employed individual, it can involve you in different occupations, although highly skilled and major in a particular one.

What are self-employed loans in Nigeria?

Just as the name implies, self-employed loans in Nigeria are loan services available to you as a self-employed individual. The loan scheme and properties vary from one microfinance institution to another.

They design it for self-employed individuals to relieve financial constraints whether in executing a contract or for personal reasons.

Are self-employed individuals the same as Business owners (SMEs)?

Not necessarily. For one, the tax rules that apply to self-employed individuals are not the same as that of a business owner. The owner of a business may hire employees and supersede operations, but technically become an employee and receive a salary. A self-employed person on the other hand is the most times the primary and sole operator of the business.

Where can I obtain a self-employed loan in Nigeria?

Although being self-employed and a business owner differs, the loan service of most financial organizations blurs the line. This is true especially in Nigeria, where self-employed is normally classified with SMEs.

You can obtain a self-employed loan from any financial organization that offers it. This is basically every financial origination in Nigeria. It includes microfinance banks, commercial banks, fintech digital-based companies, individuals, and cooperates investors. 

What are the conditions for obtaining a self-employed loan in Nigeria?

The conditions for obtaining a self-employed loan in Nigeria differ from one financial institution to another. For example, microfinance bank loans are generally easier to access, with lesser paperwork and eligibility criteria too. However, they do not offer as much loan sum as commercial banks who have tedious and lengthy procedures/ requirements.

Individuals and corporate investors are not a reliable way of obtaining a self-employed loan in Nigeria. This is because many would rather invest for a share of equity, rather than offer you a loan like conventional banks.

Fintech digital platforms offer the easiest way to get a self-employed loan in Nigeria, with almost no requirements asides your bank details. However, they offer the lowest sum among all others.

With all that being said and done, getting a self-employed loan in Nigeria includes the following documentation:

1. A functional bank account and bank verification number (BVN).
2. A valid means of identification.
3. Loan request form

And other documents as requested by the institution.

Conclusion

Taking a self-employed loan is a quick way to get out of financial obligations. As a self-employed personnel, you can obtain a loan to fund your business or contracts during a trade. The good thing is that there are more than enough institutions willing to offer one. If you meet the criteria, you can simply apply to get a loan today.  

Are you drowning in debt? Or feeling like you’re stuck in a financial black hole?

Hold on, there’s light at the end of this tunnel!

This guide will help you understand what loan liquidation is and how you can navigate your way out of debt.

So buckle up, and let’s get you back on solid financial ground!

What is Loan Liquidation?

A liquidated loan is a type of self-liquidating loan, meaning it repays itself through the cash flow generated from selling the financed asset. Loan liquidation involves selling off assets used as collateral to repay the loan if the borrower defaults.

This can also be beneficial for several reasons, such as saving on interest and improving your credit score.

Benefits of Loan Liquidation

• You’ll save money on interest payments in the long run.
• Paying off a loan early can improve your credit score by lowering your debt utilization ratio (the amount of credit you’re using compared to your total credit limit).

Self-Liquidating Loans

Self-liquidating loans are a type of short-term loan where the borrowed funds are used to purchase assets that are then sold to repay the loan.

This can be a good option for businesses that need to purchase inventory or other assets that will be quickly sold and generate cash.

How to Liquidate Your Loan

Before you liquidate your loan…

• Prepayment Penalty: Check your loan agreement for any prepayment penalties. Some lenders may charge a fee for paying off the loan early.
• Benefits: There are advantages to liquidating a loan early. You’ll save money on interest payments, improve your credit score by lowering your debt utilization ratio, and be free of loan obligations.

Steps to Take in Liquidating Your Loan:

• Contact Your Lender: Get in touch with your lender and express your intention to liquidate the loan.
• Calculate the Payoff Amount: Ask for the payoff amount which includes the outstanding principal balance and any accrued interest up to the date of liquidation.
• Make the Payment: Choose a payment method that works for you and ensure you have sufficient funds to cover the payoff amount.

Here are some tips you must keep in mind to experience a successful loan liquidation process:

1. Make your repayment or liquidation plan a priority: When your repayment plan is your priority, you get to make a conscious effort toward it. These efforts include saving ahead to cover your EMI (Equated Monthly Installment) even before it becomes due.

2. Focus on repaying your high-interest loans first: Most people often focus on paying the smaller debts first and gradually move up to the bigger ones. However, research has shown that this would only prolong your repayment period and increase the interest you get to pay. Therefore, try to direct the maximum amount you can afford to pay to your high-rate loans while securing necessary payments on the smaller ones.

3. The higher your income gets, the higher your repayment percentage: This is another factor that can help you go through a successful liquidation process. Make a conscious effort to increase your repayment percentage each time you obtain an income increase. This would cut short the time that your repayment plan would have lasted and put your mind at ease.

4. Use bonuses and windfall gains to pay larger debts: Rather than spend your bonuses on the latest gadgets and explore your desires, settle your costly debts.

5.  You can also use existing investments to repay debt: While it may seem unwise to use your investment for loan liquidation, it goes beyond that in reality. Not only does your indebtedness reduce your total credit worth, but it also ends up making the top of your expenditure list. Therefore, to avoid being clogged by debts, it is better to clear them off when you have what it takes.

I hope you conquer your debt!

For more information on debt, you should check out my guide on debt consolidation loans in Nigeria and how you can navigate your finances in a tough economy.

Conclusion

Conquering your loans is achievable, especially with the right lenders offering liquidation options (I’m talking banks!).

So, are you ready to kickstart your debt-free future? Get informed, explore your options, and get ready to celebrate!

Money loaning and repayment system is a complication that comes in different forms, especially when borrowing large sums. This led to the development of loan amortization, which provides a clear set payment amount at stipulated times. These set payments cover both the principal and interests on the loan and help create a clear picture of things. In this article, we have simplified loan amortization for your understanding, as well as including every other thing you should know.

What is loan amortization?

Loan amortization is a type of loan that is designed with a scheduled repayment structure. This structure includes periodic payments in which the borrower is to meet, and it applies to both the loan interest accrued and principal amount. The focus of an amortized loan is to pay off accrued interest for a set period, after which it focuses on the principal or pay off both at the same time.

In simpler terms, it amortizes any loan you take that follows a repayment schedule of the interest and principal itself. Some examples of these are car or auto loans, personal bank loans, home loans, etc.

How does loan amortization work?

The loan amortization system is pretty tricky but easy to understand if you follow it closely.

To calculate the interest rate on an amortized loan, they use the most recent ending balance of the loan. This way, the interest payment varies and depends on your ability to meet the periodic payments. At the expected periods, any excess payments made reduce the principal by the excess on the payment. This reduces the balance left, which is used in calculating subsequent interest.

This system encourages you to make excess payments, which would reduce the principal after covering the interest incurred. This way, you get a lesser interest since the interest is determined periodically based on the most recent ending balance of the loan. The interest and principal have an inverse relationship over the lifespan of an amortized loan.

Why amortize a loan?

The goal of loan amortization is to create a clear picture for the borrower to work with. They design it so you can pay off the loan over an extended period with equal amounts for each payment period. However, you can speed things up by paying more, hence reducing the principal owed. This way, you are both paying off the interest and principal at a go. Should you decide to focus solely on the interest payment, the principal portion increases, and vice versa. This system encourages you to pay off both sides at the same time.

What are the types of loan amortization?

Loan amortization can fall into any of the four categories. They are:

Full amortization: 

in this loan, paying the full amortization would result in your outstanding balance being reduced to zero at the end of the loan term. This is the most common loan amortization type.  

Partial amortization: 

this entails you paying a portion of your amortization amount. For every payment made, it would reduce your outstanding principal on the loan for each month. If you only pay partial amounts, you would have an outstanding balance at the end of the loan term.

Interest only: 

for interest only, you would not include any amortization payments during the loan term. It rather focuses on paying only interest, and the principal remains the same as it was initially at the end of the term.

Negative amortization: 

negative amortization is more comfortable to pay in the short term but costly in the long term. This type requires lower monthly payments than interest-only loans; however, that monthly payment increases the outstanding principal on the loan. Any shortfall of payments to the interest amount gets added to the total payable loan amount at each month’s end.

Loan amortization – practical example

Putting the four categories of loan amortization into a practical example – take, for instance, that you borrowed N300,000 with a 20-year repayment plan.

With full amortization, you would have paid off the loan at the end of 20 years. If partial amortization, then you could still owe some amount but far lesser than N300,000 at the end of the term. With interest only, you would have paid off the interest, but the principal of N300,000 remains. Lastly, negative amortization would see you most likely owe more at the end of the loan term.

Conclusion

Loan amortization is a transparent system that gives you a clear plan on how to pay up. It also rewards your diligence to meet the payment schedule through favourable interests and spikes it if you do not pay up. It is recommended that you stay with a full amortization loan as much as you can, as venturing into other types might be risky.

There are many entrepreneurs in Nigeria with creative business ideas that really have good potential but no funding. Poor funding is one reason businesses die, and some of the most exciting ideas never kick-off. What is more frustrating is the access to bank loans that could have been a saving grace. Most of these bank loans require that you have certain assets worth more than the money you need. Kickstarter Nigeria solves all that, as it brings together entrepreneurs with the best ideas and sponsors willing to support them.

With the emergence of platforms like Kickstarter Nigeria, it is less difficult for individuals with project ideas to find funding. If your project is good and solves problems, then people are most times more than willing to support it. This article has everything you need to know about Kickstarter; keep reading to find out.

What is Kickstarter Nigeria?

Kickstarter Nigeria is a peer-to-peer money-raising platform that connects the people with the ideas to those with funds. It is a completely free platform to use; therefore, you do not require any registration or running fee. Although free to use, there are fees attached if your project is successful. Kickstarter gets 5% of the money raised, while Amazon, who’s the escrow, gets around 3% to 5%. An escrow is the one who keeps the money till the project tenor is over, then forwards it accordingly, or returns it to the donors. This depends on how successful the project funding was.

What happens to your money if a Kickstarter fails?

Kickstarter Nigeria runs an all-or-nothing model. This means that after you create a project on the platform, the project has to meet or exceed its fund target, or you do not get any money at all.  If this happens, no money would be given to you; rather, it would be returned to each project supporter.

On the other hand, if your project successfully attracts enough pledge as required to get it going, then you get the money.  Therefore, your “so-called” money does not even get to you if the Kickstarter project is unsuccessful.

How does Kickstarter Nigeria work?

The steps to setting up and getting a project on Kickstarter Nigeria are:

1. Prepare your project idea

The first step to creating a project that would succeed is to develop an excellent idea. This platform is not a way to earn cool cash. If you do not have a tangible idea that can attract and fascinate people enough to fund it, you would be most likely unsuccessful.

Whatever idea it is, it must be a good one. As long as it is creative, you can submit it on the platform. Kickstarter Nigeria covers many areas like technology, movies, art, music, and much more.

2. Have a good background story

Your background story is what sells your idea. It is what pushes people to believe in and fund your project. What’s the amazing story behind how you got here and why you want to do this? It has to be something that people can connect with.

3. Create an engaging video

Humans tend to connect more with visuals, hence videos, than other media. This is why most video adverts do way better than their counterpart. Create an engaging video of yourself and tell describe your project. Be original and make people see a reason why they should fund you.

4. Log on to the website at www.kickstarter.com and create your project

The next step is to visit their official website and create your project. The processes on how to go about it and what you need to submit are stated. Just follow through.

5. Follow all instructions and submit the necessary documents

After creating your project and supplying all necessary documents, the next step is to submit. Note that important documents like a National ID card, driver’s license, or international passport are required.

6. Share your project with family, friends, and on social media

Lastly, share your project with friends, family, and everywhere else for people to see it. Even if you have the best ideas, and create the most engaging videos and background stories, if no one sees it, it dooms your project to fail. Reach out to as many people as you can!

Kickstarter for Android

To make things much easier, you can download the Kickstarter app from Google play store and set up and monitor your project from there. To do this, visit the store and search for “Kickstarter.” Download and register, then you are good to go.

Conclusion

Kickstarter Nigeria can help build a bridge between you and your dreams. You have to take this free opportunity to get the funds you need. It is absolutely free to use since the fee only applies on being successful. Just be original, create your awesome idea, sell it on a video, and get it out there for people to see.