Types of Loans in Nigeria
Though the lending industry in Nigeria is developing continuously, a considerable milestone is the Central Bank of Nigeria’s partnership with the International Finance Corporation to establish a collateral registry. According to this centralised system, lenders are allowed to register their security interests on their movable assets that are owned by borrowers.
If you take a close look at the Nigerian lending industry, you will find the microfinance lenders being more actively involved within the industry. Banks in Nigeria have been assigning higher credits to the various sectors of the economy.
Individual loans provide a worthy solution to new entrepreneurs who have just entered the industry with high business goals in mind. Once you approach the relevant team of professionals for the right size of the loan, you are also entitled to free advisory services. Here’s what you can gain by taking out individual loans:
- Instant processing of loans
- Expert financial advisory services
- Right size of loan and the best terms for your business
- Insurance cover for the amount of loan
- No hidden charges and transparent fees
- Flexible amount
- No fees for monitoring
- Less documentation
When you strive to become an entrepreneur, your goals shouldn’t be restrained due to lack of collateral or funds. This is when you may have to seek help of a group loan. Financial advisors will tell you about the loan amount to take out to avoid indebtedness. Here’s what you can gain from a group loan:
- Best rates on declining rate
- Surplus working capital
- Repayment schedule tailored to meet the needs of your business
- Insurance cover in case of unforeseen circumstances,
- No such hidden costs
- Simply-placed terms and conditions
Small Enterprise Loan
The small enterprise loan is meant for business owners to develop and grow their business. This is easily accessible as long as the business is viable and has been operating for more than a year. You can use it for augmenting working capital, acquire assets, expand your business and buy goods and raw materials. Here’s what you can gain through this loan.
- The appropriate size of loan from your business terms
- Loan processing done in few minutes
- Financial and professional advisory services
- Flexible amount of loan
- Insurance cover for the loan amount
- No fees for monitoring
- All transparent fees and no hidden charges
- Less documents for renewal or for second loan
- Accrued interest rate on a declining rate
If you’re wondering about the different loan options available in Nigeria, you can take into account the ones mentioned above. Several loans have different interest rates and features, and you have to choose the most appropriate one in accordance with your business requirements. Make sure you speak with a financial advisor before settling on the loan.
Government funding programmes are handled by the following banks.