Olamide Famuwagun

Fina Trust Microfinance Bank

August 9, 2020 by Olamide Famuwagun

Quite a number of people deal with the requisite involved in securing a loan in Nigeria. In most cases, regular banks do not reply nor accept loan applications while others have placed standards uneasy to reach.

Microfinance banks dwell to ease financial demands. They as financial institutions provide easy services where individuals will meet up in comfort. Where there are other microfinance banks that offer great services, a number of them that ensure safe customer services and one of them is Fina Trust Microfinance Bank.

About Fina Trust Microfinance Bank.

Fina Trust Microfinance Bank stands tall amongst a number of well delivering micro finance banks and they provide services suitable for their customers.

What products does Fina Microfinance Bank offer?

Fina Microfinance Bank offers a number of services to cater to various needs. They include:

Micro Loans

This service is suitable for SMEs, entrepreneurs, students as well as traders to access close to 1 million naira for already existing businesses. Fina Trust Microfinance Bank charges a minimum interest rate of 5% where the total summation is dependent on customer response.

Salary Advance

This product is targeted at salary earners thst enables them to access close to 75% of their monthly salary in advance.

Group loan

Very common in subjective parts of the world, Fina Microfinance Bank as well offers group loan which is available at a 3.5% interest rate. The Group loan product is presented in a credit rotation model.

This model is where a group of people become informal financial institutions through repeated contributions and withdrawals from several parties. This is due to limited service provided by formal authorities and restrictions of some sort.

The group loan seemingly reduces the risk to the lender which allows them charge lower interest rates than other loan types.

Here, the transaction is made through people themselves and it is also based on individual needs or lottery. This helps individuals who find it hard to get access to substantial capital by letting them have periodic access to needed funds where they have to pay within a period of time.

Advantages of Fina Trust Microfinance Bank

The Fina Microfinance Bank offer products thst are conveniently for customers. As an example, they have convenient repayment plan as well as equal monthly Principal and interest repayments.
Their conditions are flexible.
This MFB make sure that it is possible for retail business to obtain funds for capital projects with installmental repayments.

Disadvantages of Fina Trust Microfinance Bank

This Microfinance Bank in for loan requests demand the availability of a guarantor.
The maximum time allotted to products is six months.

Requirements of Fina Microfinance Bank

The major requirements include;

For group loan, group members must reside in the same location.
There must be group gurantor for group loan.
Potential customers must provide two credible gurantors.

How to contact Fina Microfinance Bank

You can visit the head office at 46, Toyin Street, Ikeja, Lagos State, Nigeria. Or reach through +234-01-6326874/ +234-01-6326875 or +234-9062020040. Furthermore, you can send a mail to inquiry@finatrustmfbank.com.

Conclusion

It is safe to say that when the need arises to gain access to loan facilities, you should contact Fina Microfinance Bank for their suitable services. You can check out other microfinance banks like Nirsal providing different kinds of loans.

Nigerian Housing Fund (NHF) – What it is and how to get it

August 7, 2020 by Olamide Famuwagun

Accessing a mortgage loan in Nigeria used to be near impossible. Unlike most of the western world where a satisfactory credit score, a sizable down payment, and a qualifiable stream of income is enough to access a mortgage loan – there wasn’t a system like that in Nigeria. Or was there?

In this article, we will review the NHF (Nigerian Housing Fund) process and how you can enjoy it to live in the home of your reality (not your dreams because we are all about being realistic here)

What is the Nigerian Housing Fund (NHF)

The Nigerian Government started the NHF in 1992 to help citizens in all sectors of the economy who cannot afford commercial housing loans to own their houses by contributing 2.5% of their monthly salary to the Federal Mortgage Bank of Nigeria.

They establish it as a viable alternative to commercial lending that has more stringent processes from banks.

Who is Eligible for this Loan?

To be eligible for this loan, you must be:

A Nigerian citizen
Over 18 years old
Must have contributed to the funds for a period of nothing less than six months (Most preferably about a year for a higher chance of approval)
Must have satisfactory evidence of a regular flow of income to guarantee repayment (You should be able to prove a working history for at least five years either with business ownership or a salary income)

How to apply for the National Housing Fund

Except for commercial borrowers who can apply directly to the Federal Mortgage Bank of Nigeria, everybody else must apply through a Primary Mortgage Bank of their choice.

Four primary mortgage banks that you may consider are:

FBN Mortgages
Platinum Mortgage Bank
Abbey Mortgage Bank Plc and,
Trustbond Mortgage Bank

You can get the NHF loan application from any of these banks.

Requirements of an NHF Loan

Open a savings account with a Primary Mortgage Bank.
Contribute to the account for about a year
Have evidence of income (for at least five years)
Photocopies of approved property title documents
The approved site and building plans
Bill of Quantities (if applicable)
Valuation report by a registered firm of surveyors (if applicable)
Tax clearance certificate for at least three years
Letter of consent to mortgage by your chosen Primary mortgage bank
Completed mortgage loan application
Copy of at least five payslips
For self-employed applicants, you must submit a copy of Articles and Memorandum and a copy of Certificate of Incorporation as evidence of employment.
Approved down payment amount, which can be up to 30% depending on the loan applied for

How much can be applied for?

The maximum amount allotted to any individual borrower is 15 million naira. An individual cannot qualify for over 90% of the cost or value of the property.

Conclusion

Getting a house of your reality can be achievable in Nigeria. As long as you have the listed qualifications, you can start plans on a viable home.

If you need help or have questions on how to proceed, please do contact us for more information.

Jumia One Loan – All You Need to know

August 5, 2020 by Olamide Famuwagun

It’s always great to possess purchasing power. That feeling you get when you can make transactions with ease has to be one of the best you can ever feel in the world. However, it’s not always the case because not everyone is Financially stable. Another fact is that not everyone is Financially stable at all times, especially the necessary times.

Help is on the way

A lack of finances can be a downer, whether you’re trying to pay for an item you want or need, or you’re paying for an essential expense. It could very well spell a terrible day or a terrible week. What do you do when you need a quick cash loan to meet your personal needs then? Where can you turn to?

Jumia One Loan could be just what you need in your corner. In this article, we’ll look at Jumia One loans – one of the platforms where you can get a loan in Nigeria; what it’s all about, their eligibility requirements, and how you can apply for them.

About Jumia One Loan

Everyone already must have heard of Jumia at some point or the other. It’s an online retail company that provides an excellent shopping experience for its customers. The company has since diversified its operations to not only online shopping, but other aspects.

Jumia One Loan is one of those diversifications. It is a lending platform that is fully automated, provided by Jumia. They created the platform with a focus on making credit facilities accessible to all and sundry; especially those that are not necessarily eligible for standard Bank loans. Interestingly, this is a large portion of the African population.

What type of loans can you get from Jumia One?

Jumia One Loans are in different categories. This is because Jumia has loan products to meet everyone’s needs. They are;

Payday loans – the payday loan is a loan that is created to provide financial assistance for the working class. It works like an overdraft would, and is expected to be paid back upon the next paycheck of the borrower. It is eligible for employees of any functional organisation, from companies to ministries and other establishments.
Education – available to anyone for use in pursuing their academics. Meant to aid educational expenses.
Business – These loans were created to help businesses cover cash flow payments and aid overall transactions.

How long does it take to get a Jumia One Loan?

The loan processing on Jumia One is one of the fastest in the auxiliary credit facilities space. The loan options are provided to the applicant within a space of 15 seconds, and loan approval and disbursement is secured within 5 minutes.

How accessible are Jumia One loans?

Jumia One loans are some of the most accessible loans you can get. They are available on the Jumia One platform for 24 hours a day and 7 days a week. This means whenever you press for financial help, you can access the platform to begin your loan process right away. You can conduct the loan process on the Jumia One mobile app.

How much is available for loans?

First-time borrowers can borrow the sum of 10,000 naira. You can get as much as 100,000 naira based on your credit scores built up over time.

How long does it take to pay back the loans?

Loans like the Jumia One loans are loans regarded as money lender loans. They are short-term loans that provide financial help until the next paycheck comes in.

Pros and Cons of Jumia One loans

pros:

The loan process is fast
There is no need for a collateral
There is no need for guarantors

Its cons are;

The maximum amount eligible for borrowing is low.

What is required to apply for a Jumia One loan?

These are the requirements that make you eligible for a Jumia One loan:

Your bank details
Bank verification number
A mobile phone with an internet connection
The Jumia One app
Your application

Conclusion

Jumia One loans are the best option for those looking to get an unsecured loan; that is, loans that do not require collateral or have long and tedious application processes.

It is especially great if you do not have an existing credit profile which would typically render you ineligible for a loan from a bank.

Zedvance Loans – How to get a loan

July 17, 2020 by Olamide Famuwagun

Getting an instant online loan in Nigeria is not always a breeze. Getting loans is in itself, perhaps a full-time job. There are requirements to be met, forms to fill out, and series of cross-checks because to be frank, no one wants to be in a situation where they lend money out and don’t get paid back. That’s why it is so tedious for security.

It’s not always so tricky, though.

In this article, we shall consider how to get loans from a special type of loan provider. Here is the low-down on Zedvance.

About Zedvance

There is a massive list of loan providers these days, and where it’s naturally difficult to be distinct because most claim to offer the same thing, Zedvance stands out. Zedvance is an outfit that provides excellent loan services without collateral or with low interest.

Pros and cons

There is nothing devoid of advantages and disadvantages. The simple rule is if it has an effect, it most definitely has its side effects. Zedvance is not excluded from this rule. Here are the pros and cons:

Pros

The loans can be of high capacity. Meaning you could get a very substantial amount from them. It would take a lot to get a high amount of loan from any other credit facility, but with Zedvance, it’s much more manageable. Almost natural.
They boast of a quick loan approval process, faster than the usual. Which means you can get your loan practically as soon as you need it.

Cons

Zedvance operations nationwide are limited. It only operates in Lagos presently, and so that means any applicants and their applications from outside the state are as good as void.
There is too much paperwork involved. It requires a hefty amount of paperwork to fill out and completed in the application process, and at some point, it can get frustrating.
It requires proof of employment and quite a lot of it too if you’re self-employed or a freelancer that might prove challenging to present.

How much can you borrow from Zedvance?

Zedvance loans allow you to borrow up to N5 million.

What are the interest rates for Zedvance?

Zedvance loans attract interest rates of about 12 per cent to 45 per cent.

Are there any additional fees for Zedvance?

There are no additional fees.

What do you need to take up a Zedvance loan?

The following are documents needed for a Zedvance loan application:

Means of identity; passport, national identity card, driver’s license
The Request of Account statement form; which you are to fill and taken to your bank for confirmation by the loan officer
Your Employee Identity Card; to prove your employment status
A Direct Debit Mandate
Your Tax Identification Number or pension statement and letter of employment
A passport photograph clearly showing your face.
For freelancers or contract term employees, for security, you would need to provide guarantors who are permanent staff in your workplace.

How fast are funds released?

Zedvance boasts of quick approval processes, and once they approve the loan, you get the loan in minutes.

What are the repayment terms for Zedvance loans?

Zedvance loans are repayable for periods of up to 18 months.

Conclusion

Working-class? Need a quick loan that’s got a substantial amount? Then it would be great if you considered applying for and obtaining a Zedvance loan.

Soft Loans in Nigeria – Meaning and where to get it

July 16, 2020 by Olamide Famuwagun

Hands up if you’ve ever needed a bit of a “jolt” also known as you need to borrow some money. Furthermore, hands up if you called all of your surest guys and girls and they all gave you the “you know the economy is hard” line.

Hands up if you ended up looking at the sky, hoping that it’ll start raining dollars.

If you put up your hand to one of the three scenarios, you are a part of the 90% population and, we are right there with you also lifting up our hands

We are very familiar with this look, the state of confusion and frustration. It is well dear.

Unexpected expenses come up and with the unstable Nigerian economy, it can exhaust your savings with just one mishap. So what happens when you just need a bit of cash to get you by for the next couple of months and your family and friends can’t seem to help you? Soft loans may be an option for you!

What are soft loans?

Soft loans (or quick loans) are typically loans given by financial institutions at below the market rate. They grant these loans without collateral and have a simple process. One has a higher chance of getting approved for these loans if they are salaried or have an established business with trackable profit.

Where to get soft loans in Nigeria

Below are 5 companies that offer quick loans in Nigeria. Please note that the list is in no particular order and are simply for informational purposes only. These organizations have their various requirements, but one thing they all have in common is no collateral (for the most part!).

Paylater (Carbon):

This online lending platform processes your approval within minutes. This soft loan is available to businesses and salary earners in Nigeria. With Carbon, you can access up to N500,000 and they disperse funds within 1-3 days.

Kia Kia:

The name of this organization, translated from the Yoruba language to English means “Quickly”. That’s essentially the bane of their business, in the sense that loans if approved, are quickly disbursed. KiaKia also allows individuals to invest in loans as a means of investments on the premise of an interest return.

C24 Limited:

What’s pretty amazing about this company is that, right on the home screen of their website, it has a repayment calculator so you can easily see what your repayment will look like using that calculator. As with the other companies listed, the application is also a digital process

Quickcheck:

This is for people who need a quick boost of less than N100,000. They complete the application online or on their application. Its fairly quick and easy and approval can take less than 30 minutes with disbursements happen as quick as an hour.

Specta:

This lending company disburses loans of up to N5 million without collateral! Application processes can be as little as 5 minutes and funds disbursed within the hour.

Conclusion

While loans need to be repaid back and with interest, it may be a viable option if used responsibly. To find out more about soft loans and repayment plans, click here

CBN Creative Industry Loans – What you should know

July 15, 2020 by Olamide Famuwagun

The arts and crafts make up an integral part of any community. They are what depicts the soul and the identity of any group of people. Recognising the importance of creatives is a crucial thing to do.

However, being a member of the creative community can be tough because so many opportunities are not open to this sector. This applies most, especially in loans.

Getting a loan as a creative for your business is very difficult, considering most banks will only finance a loan with a prime chance of repayment, and creative loans do not rank highly. This could be depressing, but not to worry— there’s hope on the horizon. If you’re creative, and you’re looking for a loan, this post provides information on how to solve your money issues with loans from the Central Bank Of Nigeria.

About CBN loans for Creatives

Recognising the need to cater financially for the creative industry, both the Central Bank and the Bankers’ Committee set up and implemented plans to facilitate this idea.

This idea comes in the form of the Creative Industry Financing Initiative. CIFI is set up to help in the process of job creation by encouraging entrepreneurship in the creative industry with the loans.

Who is eligible for the Creative Industry Financing Initiative?

The initiative covers four focal points in the creative industry. These focal points are Fashion, Movie/Film, Music and Information Technology. These categories mainly include the aspects of movie production and movie distribution, software engineering, fashion designing and music student loans. Anyone in these fields is automatically eligible to apply.

How much is available for loans?

The Creative Industry Financing Initiative realises how intensive the creative industry is, and that to make value, the loans need to be substantial. That is why businesses applying for loans in the CIFI are eligible for loans up to the amount of N500 million.

How does the CIFI work?

One primary requirement of the loan is to be a member of the creative industry, especially in the categories listed above. As there are different categories, so also does the amount eligible for each vary. The categorisation goes as follows;

Software Engineering students can get up to N3 million
Movie Production businesses can get up to N30 million
Businesses into Movie distribution are eligible for up to N500 million
Fashion and Information Technology businesses can get loans to cover their rentals and other service fees
Music businesses can get loans to cover the fees for training, equipment and rentals, and service fees.

How to apply for CIFI loans

Prepare your business plan. This should state how much we need and what the business entails. The business must operate in the creative industry.
After preparing the plan, head off to any Bank of your choice and apply for the loan.
Your application will be analysed and reviewed and determine if your business is eligible. If it is, the loan is successful, and you get the funds requested for.

Does the loan charge interest?

The CIFI loans attract a maximum of 9 percent interest rate per annum.

What are the repayment schedules for the CIFI?

The various categories have unique payment schedules. They are as follows;

Software Engineering Student Loans are to repaid under three years maximum.
Movie Production and Distribution loans have a maximum of 10 years.
The Fashion, Information Technology and Music based loans have a ten-year maximum repayment plan.

Conclusion

If you’re a creative looking for loans in Nigeria to finance your studies or business, then applying for the Creative Industry Financing Initiative is your best bet to getting that financial help.

Creditville – Everything you should know

July 15, 2020 by Olamide Famuwagun

Creditville Limited is a private lending institution and asset management company operating and registered in Nigeria. They offer a range of lending services.

Let’s look at some reasons you should take a loan from them today

About Creditville

Creditville takes a business interest in Consumer Finance, Real Estate And Capital Markets. Their customer base includes distinct individuals in salaried employment and small and medium scale businesses in Nigeria.

It operates as a viable institution by delivering creativity and professional services on global best practices.

What is the maximum loan amount I can get from Creditville?

They design their loan products for salary earners and small businesses, and you can get between N100,000 and N4m loan in Nigeria.

The tenor for the loan is between six to twelve months

They offer the loan products listed below

Creditville Personal Loan (Pay Day Loan)

Creditville made this product for professionals and other salary earners. They designed it to meet the immediate cash desires of customers.

With a tenor of up to 12 months repayment period, their payday loan offer is between N100,000 and N4,000,000.

Requirements for Salary/Payday Loan

Payday Loan request application letter.
Copy of client employee ID Card.
Copy of a valid Nigerian means of identification
Passport photograph
Salary current account statement
Duly completed salary loan application form.
Letter of Employment or Confirmation of Employment.
Proof of Address (Utility Bill, Rent Receipt).
A Guarantor is necessary under some circumstances.

SME Loan

This product addresses the gaps that may occur from day to day running of a business. The business must duly register with organised cash flow and financial records.

With a tenor of up to 6 months repayment period, the business loans offer between N100,000 and N4m.

Requirements for SME/Business Loan

One passport photograph
Post-dated NUBAN cheques
Statement of account
CAC Certificate of Incorporation
Memorandum of Association
One means of identification (international passport, drivers license or national ID)
A suitable guarantor

Car Loan/Auto Lease

The product offers car loan facilities to individuals in salary employment in the form of asset finance towards the purchase of a personal vehicle.

The car purchased will solely be for private use and not for any commercial purpose. It transfers ownership of the vehicle to the customer upon completion of the loan repayment. See other car loan companies in Nigeria.

Requirements for Car Loan/Auto Lease

Duly completed application form
Valid professional driver’s license
Copy of Office means of identification
Recent utility bill of house address
Six (6) months bank statement
A duly executed Asset finance agreement
Evidence of equity contribution lodged with Creditville Limited’s account.

Other business interests include

Real Estate

Creditville Limited has a real estate and property management arm recognised as Creditville Properties.

It deals in real estate solutions ranging from agency business, property management and property development in major Nigerian cities.

They have a presence in other cities. like Lagos, Abuja and Port Harcourt.

Capital Markets

Creditville licensed by the SEC and manages an array of investment portfolios and other investment advisory services to private investors.

Conclusion

Creditville is one of the fastest leading loan companies in Nigeria with an integrity-based practice, anchored on honesty and transparency.

Rapid Cash Loans – Everything you need to know

July 12, 2020 by Olamide Famuwagun

Loans usually come in handy, especially when the moneylender has an interface that makes it very easy for customers. Rapid Cash is one of the best money lenders offering loans to business owners and salaried individuals.

About Rapid Cash?

Rapid cash operates an online money lending business granting business owners, private individuals, and corporate entities loan in Nigeria. When repaying loans, Rapid Cash provides customers with single payment loans or loans with instalment payments and payroll loans. To access this loan, Rapid Cash connects your bank account to your loan account, from which they will deduct the borrowed amount from.

How many loan kinds does Rapid Cash offer?

Rapid Cash offers a minimum loan amount of 10,000 naira. However, the highest amount a recent member can get is 50,000 naira. New or old, a customer requires no collateral or guarantor to get a new loan.

What are the Interest Rates?

The interest rates of Rapid Cash differs from customer to customer. It uses the repayment history of the customer and his or her cost of lending. However, to take a salary advance loan, you are only eligible to take 20% of your salary. This means that a loan of 20,000 naira is possible for an individual who earns 100,000 naira.

Who can use Rapid Cash?

Rapid Cash can be used by individuals who need short-term loans. If the loan you need from banks has been steadily rejected, there is a chance Rapid Cash has something for you. This is because it is a short-term loan targeted at students, small businesses, and other individuals who are typically not eligible for a bank loan.

Rapid Cash options

Rapid Cash has the Payday loan which is designed for individuals currently earning a salary. It is meant to provide an overdraft to the staff of reputable companies or governmental organizations. To qualify for this loan, all you have to do is complete the salary advance loan and submit for assessment. The maximum tenor for this loan is 30 days.

Rapid Cash is a great option because you get your loan decision in less than one day. Also, the repayment plans are quite flexible and can be managed to fit your financial state. Of course, this loan requires no collateral and guarantor. However, Rapid Cash is only available for individuals currently earning a salary, and working in a private organization. Also, the maximum amount you can borrow through Rapid Cash is 50,000 naira.

How to get started

To get started, all you need to do is provide a verified social media account, your bank details — bank account name and details — your Bank Verification Number, and an official email address to track the process.

The best way to get the best loans in Nigeria is to conduct an online analysis of other online moneylenders. This way, you are kept abreast of the best interest rates and the repayment period.

Conclusion

Rapid Cash connects with its customers by meeting them at their point of need via social media. They understand that many people spend most of their time on phones and they have strategically designed their products to target mobile and social media users

Petty cash Loan – Borrowing Money from PettyCash

July 10, 2020 by Olamide Famuwagun

You know for some people, the problem they have is how to spend the money they have. It’s rare that you’d come across them, but they exist and if you are one of those people, keep reading. Also, send us your email, we need to talk to you (just kidding), but seriously though…

Anyway, a platform called Pettycash is in business for people such as yourself. Actually, they are also in business for everyone, those who have in abundance and those who need some help once in a while.

So, what is Petty cash loan?

Pettycash is an online lending platform where people who receive a monthly salary can get a pay advance of up to N50,000 (or N5 million, with specific terms and conditions). As long as you’re employed, you’re qualified and can have access to small short-term loans. Pretty cool huh?

How Petty cash loan works

Okay, let’s start with some of us that may need a little help once in a while.

Pettycash offers different loan products that are geared towards a specific audience, below are the loan products they offer:

Federal Staff Loan: Also knw as the Fed petty cash loan, this is a product specifically geared towards people who work with the Federal Government. Loan amounts vary from N5000 to N50,000
PettyCash+: This is an emergency loan of up to N10,000. It is only available to those who have a monthly salary.
Payday Loan (Most popular): Instant loans between N10,000 and N50,000 are available to salary earners.
NSCDC Loan: Available to any officer in the Nigerian Security Civil Defence Corps. Loans are from N50,000 to N500,000.
Business Loan: These loans range from N500,000 to N5,000,000. However, a car is needed as collateral
Personal Loan: Get a loan of up to N500,000 using your car as collateral, however, you still get to keep and drive the car.

The interest charged on these loans depends on the repayment plan. For context, if you’re able to upset the loans in a short amount of time, you’re likely to pay less interest. But, if you stretch the loan repayment longer, you’re going to pay more interest. These terms are just like any other loans.

Now, for people who need some direction on how to spend the money they have

Pettycash also has solutions for you! Depending on how much you invest, pettycash will pay the return on your earnings monthly! Average returns are about 24%, which is pretty cool considering the fact that even if a lender defaults (let’s pray they don’t), you still get your money back with interest when due. Petty cash deals with brokering the deals while you sit back and expect your credit alerts.

There are four different loan buckets available for investments

Personal Loan
PettyCash+
Federal Staff Loan
NYSC Loan

You as an investor can decide which of these buckets you’d like to invest in as they all have different returns.

Conclusion

Pretty easy deal! Pettycash is a platform that has made this process quite easy. Their easy-to-use website – https://pettycash.com.ng/ has simplified this process even further. However, if you’d like to speak to an agent about other investment opportunities similar to this, click the link below.

Loan – Meaning and Types of Loans

July 9, 2020 by Olamide Famuwagun

Meaning and Types of Loans

Every single day there is the need to carry out business transactions. It is a fundamental element of everyday living. Having the means to complete these financial activities usually means having sufficient funds. That is, however, a different matter.

Half the time, a lot of the things you need to do cannot be done because of a lack of finances at the time.

What happens then? You get a loan then. The technicalities on loans seem to be straight forward.

In this article, we will be breaking it all down; what loans are, what types of loans there are in Nigeria, and how you can get them.

What is a loan?

A loan is simply money (in some cases, it could include other financial assets) given to another individual with a promise of repayment either on principal (the actual amount borrowed/lent) alone or with interest (an additional amount added to the principal usually calculated throughout the loan). They could be for personal use or business.

What are the types of loans?

There are various types of loans in Nigeria meant for multiple purposes. As there are many reasons to carry out transactions, there are many types of loans to meet these reasons as well. The types of loans are;

Secured loan: a secured loan is a loan that requires you to provide collateral when applying for the loan. This collateral is a form of safeguard for the loan provider, and so if you don’t pay the loan back, the loan provider gets to collect the collateral to settle the loan. Secured loans usually have lower interest rates, and you can borrow more.

Unsecured loan: with unsecured loans, it requires no collateral in the application of the loan. Unsecured loans are usually personal, instant loans in Nigeria and come with higher interest rates because of the payback. There is less money available to borrow with unsecured loans, however.

Single payment loans: as the name implies, these loans involve a borrower taking out a loan from a loan provider and agreeing to pay back the full amount of the loan plus interest in one payment.

Monthly payment loans: unlike single payment loans where you pay back the loan once, you repay monthly payment loans over a spread period. Each month, you pay a prefixed amount, until the loan and interest are settled.

Salary advance loans: Salary Advance loans involve people who collect their paycheck ahead of time. Most paychecks are paid towards the end of the month, but with a salary advance, you could get it earlier than that. The amount is then deducted from the actual salary when it is paid. Salary advance loans usually don’t charge high-interest rates.

Mortgage: these are loans taken out for the purchase of a house or landed property. At a fixed period, an amount is deducted to settle the mortgage. However, if the payments on the mortgage stop or if it isn’t paid, the mortgage loan provider gets to collect the property from the borrower.

Fixed-rate loans: fixed-rate loans are loans with one fixed interest rate throughout the loan.

Variable-rate loans: with variable rate loans, the interest rates on the loan change over time. The change is determined by the general interest rates fluctuating.

How can you access the loans?

Loans are easily accessible from most financial institutions; it all just depends on what type of loan you’re looking for; either it’s for personal use or business. Banks, credit unions, cash advances are valid means of getting loans, and there is a plethora of other loan service providers popping up each day, each with its terms and conditions.

Conclusion

Now that we have broken down the types of loans, you know which would meet your needs perfectly. Be sure to check out the interest rates on loans before you collect them, as well as the payback period.

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