Urgent Loan in Nigeria: 6 Little Steps You Need To Guarantee Approval

If you need an urgent loan in Nigeria, this is the only guide you’d need.

If you need money urgently for a business or to renew your rent, you are likely going to have these questions on your mind. How do I get a loan in Nigeria without collateral? How do I choose the best loan app in Nigeria? How do I apply for the loan? Should I apply for a Covid-19 loan? Keep reading this guide for a step-by-step process to getting guaranteed approval for an urgent loan in Nigeria without documentation.

To answer the first question, you can get a loan from loan apps, microfinance banks, or a commercial bank. The process for all three lenders is similar, with slight variations depending on the amount you plan to borrow.

Here’s are the steps involved in getting a loan in Nigeria:

1. Check the numbers

The first thing you should do before taking a loan is to check the numbers to make sure you can afford to pay the loan. On most lending platforms, this is also their first step. They do this by asking for your salary details, the loan amount, salary pay date, house address, among others.

You can do this by determining the amount of money you need, noting that many lenders charge an origination fee and interest rates. Many lenders have loan calculators to make this process easier. Make sure you borrow an amount you can afford to pay back in due time.

Takeaway: Take note of the interest rates, how much you actually need, and the amount of money you can afford to pay monthly.

2. Check your credit score

The next step for most platforms is to check your credit score. This is to determine if you can afford to pay back the loan. Apps like Carbon (Paylater), have a built-in feature to check your credit report from all three credit bureaus in Nigeria.

For loan apps that offer small amounts of money like Sokoloan and KashKash, they only require borrowers to have fair credit. For higher sums of money, most platforms will expect excellent credit. The relationship between credit score and interest rates is inversely proportional. The lower your credit score, the higher the interest rate, and the higher your credit score, the lower the interest rate.

Takeaway: If you have a good credit score, you have a higher chance of getting a loan at low-interest rates.

3. Pick the type of loan you need

Once you know your credit score, the next step is to decide what type of loan best fits your situation. While some lending platforms are flexible, others only approve loans that have specific purposes. For example, 9credit will allow you to take a personal loan to pay your rent but Primera will decline you in the same situation. It is advisable to find a lender who will loan you money for the actual reason you need it.

You can also search online loan marketplaces like Credit Nigeria for various kinds of loans available. Some of these include car loans, online loans, salary advances, emergency loans, debt consolidation, personal loans, travel loans, amongst others.

Takeaway: Pick a lender and loan type tailored towards your specific needs.

4. Choose an appropriate lender

After deciding the type of loan you need, the next step is to choose an appropriate lender. You can get loan offers from different loan apps to see the interest rates and loan durations.

After carrying out due diligence, go with a lender that offers you the best interest rates and start the process of applying for the loan. There are currently many lenders who let you carry out the whole process on their website or app. While every lending platform is different, most of them will ask for most of these things:

• Means of personal identification: This can be your driver’s license, voter’s card, or international passport.
• Proof of income: This is usually a 6-month statement of account from your bank.
• Employer’s information: This includes your company name, phone number, offer and/or confirmation letter and work ID card.
• Proof of residence: This includes a utility bill (PHCN, LAWMA, etc.) with your name and address.

They will then ask how much you need which is then followed by a chance to review the terms and conditions for the loan. Study this to make sure the fee and repayment period align with earlier discussions and do not contain hidden charges.

Takeaway: All lenders have different application processes but most of the time, you can complete them online.

5. Provide necessary documentation

The next step is to provide all documentations needed by the lending platform. For most of them, you can scan and upload to the app or website.

The required documents and mode of transferring it to them will be clearly stated. Some apps like PayCredit ask you to send your confirmation letter and bank statement using your official email account. The faster you give them the documents, the sooner you get a decision.

Takeaway: Gather all your documents and make sure they are up to date to speed up the application process.

6. Accept the loan and start repayment

If a lender finds your documents valid, they approve and offer you a loan. If you find the terms agreeable, accept it. Loan apps like Branch, Carbon, OKash, 9Credit fund you between one or two hours but if it is a Microfinance or Commercial bank like RenMoney or Creditville, you can get it between one and two working days.

Now that you have the loan, you can set up a repayment calendar so you don’t default. Some lenders like Carbon offer cash back if you pay on or before your due date.

Takeaway: Once you receive your loan, create a repayment plan.

Did this article help or did I miss anything? Don’t hesitate to let me know in the comments section and share.