Have you gone to the bank, and you are asked to choose a salary or a personal loan? In this post, we are going to look into what a personal loan is all about, how to get a loan online, how to get approved for a personal loan, and how to get a personal loan in 8 steps online. If you wish to
A loan is a type of debt. The borrower agrees to repay the lender the sum of money loaned, at a particular time. It is often paid part by part over time, in order to clear the debt.
Here are the types of loans an individual can apply for in any bank such as First Bank, Access Bank, Zenith Bank, Unity Bank, and GT Bank in Nigeria.
- Auto Loans.
- Mortgage Loans.
- Personal Loans.
- Home Equity Loans.
- Student Loans.
- Credit-Builder Loans.
- Payday Loans.
- Debt Consolidation Loans.
WHAT IS PERSONAL LOAN
A personal loan is a loan that does not require collateral or security and is offered with minimal documentation.
You can use the funds from this loan for any legitimate financial need. Like any other loan, you must repay in accordance with the agreed terms and conditions of the bank.
Documents Needed To Apply For Personal Loan?
You will be required to upload some important documents and some personal details before you can apply for a personal loan in Nigeria.
- Legal age from 18 and above
- Means of personal identification (passport, driver’s license, National ID, and Voters card)
- Proof of income through a statement of account and tax returns
- Employment (Occupation/Business and Office Address)
- Personal details – Name (First Name -Middle Name – Last Name), Date of birth (Day/Month/Year), Citizenship, Email address, Contact phone number, Occupation, and Source of income (self-employed).
- Residential address OR status (Home address)
- Bank Verification Number (BVN)
- Utility bills (Water bill, PHCN or electricity bill, Telephone bills, DSTV/GOTV or Cable receipts, Rent agreement, LAWMA bill).
But as a Business owner in Nigeria, after you are done with providing these pieces of information. Note: you must have a legit business, a business that gets income at the period between 6 and 12 months and also can meet up to the repayment requirements.
These requirements vary widely depending on the lender and the borrower’s relationship with them. A few include:
- Any available collateral
- Group membership
- Business plan
In this kind of loan, a secured loan uses an asset you own as collateral; takes the asset if you don’t repay, and also it is risk for borrowers, that are interested while an unsecured loan requires no collateral and also has higher interest rates.
Here Are The Terms And Conditions For Applying For Personal Loan
These are the terms and conditions, you must meet up to before you can be given a loan to apply for a personal loan in a bank. Follow the below terms and conditions such as:
- You must be a citizen of that country.
- You must be up to the age of 18 and above.
How To Get A Personal Loan From A Bank
A. Run the numbers.
Before applying for a personal loan in any Bank in Nigeria, make sure that your reason for applying for a loan is very convincing that you can repay. Verify carefully to know if you can pay back the loan and the interest rate amount.
B. Check your credit score.
You have to check your credit score
C. Consider your options
D. Choose your loan type.
Choose the exact type of loan that you want. For instance, some lenders couldn’t care less about how you use the funds, while others only loan out when the money is for specific purposes.
- Personal loans. Can be used for almost anything.
- Auto loans. For buying a car.
- Student loans. For paying for school expenses such as tuition, housing, and books.Business loans. For launching or growing your business.
- Short-term loans. For when you’re in a tight financial spot and need cash quickly (these include installment, payday, and auto title loans).
- Home loans (mortgages). For buying your next home.
E. Shop around for the best personal loan rates.
You can use this to your benefit by putting together each loan quote and selecting the lowest interest rate. Don’t settle for the first offer you receive, instead compare several loans to make the best decision.
F. Pick a lender and apply.
After you are done with loan offers, it’s time to proceed and apply. At this stage, you should pick the lender with the best offer for you and apply for their loan. The application process varies from one lender to another and may be done online or at a local office. Also, during the application, you’d need to provide certain documents and also review the complete terms and conditions for the loan.
G. Provide necessary documentation.
The documents you’d provide during the loan application vary from one lender to another. However, it usually includes your name, address, contact information, a valid form of identity, employment details, Driver’s license,
Bank statements, recent tax documents, and more. Also, depending on the channel of the application, you might need to scan and upload it online or submit it.
H. Accept the loan and start making payments.
Once your loan application has been approved and finalized, your preferred account would get funded within days.
Also, for easy repayment, set up an automatic payment system from your account at every repayment installment. Finally, keep in mind that most lenders offer lower interest when you pay the loan off early.
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