Loans are necessary for individuals in need and for small/medium enterprises (SMEs) in Nigeria that are finding it difficult to start and expand their businesses due to a lack of funds.

You can decide to get a loan through banks, however, you can also get a loan without having to go through the complicated process that most banks or lending schemes go through before getting loans.

How To Apply For Loans In Banks

Banks have made plans to provide unsecured loans for small and medium-sized enterprises as part of the central bank’s initiative to boost growth in the SME sub-sector. Unsecured loans offered by banks do not require collateral. All you have to do is provide the bank with your business plan and financial projections.

The best thing about bank unsecured loans is that they are easily accessible to entrepreneurs, regardless of the type or size of their business. Find below the typical process to apply for business loans from banks in Nigeria.

1. You will need to write an application for the type of loan you want, and the application must include the purpose of the loan, the amount of the loan, the permanence of the loan, the source of loan repayment, and the loan collateral (if required).

2. Again, a letter of request must be addressed to the manager of the bank’s branch where the salary is domiciled and, after it is written and signed, the client presents it to the bank for subsequent procedures.

3. In addition, the bank receives the letter, reviews the application, drafts a Credit Assessment Memorandum (CAM) that highlights the client’s capacity, condition, character, collateral, and capital, generates the loan payment schedule, prepares the offer letter that specifies the terms and conditions under which the loan will be granted.

4. You will then sign your offer letter and meet the pre-reduction conditions. Pre-withdrawal conditions include the provision of post-dated checks covering the full length of the loan tenure, presentation of a guarantor in good standing, execution of the guarantor’s form, and declaration of personal net worth by the guarantor. guarantor, provision of pro forma invoice (for a car loan), capital contribution (for a car loan, personal home loan, and joint mortgage), statement filing, and execution of personal net worth declaration form by the clients.

5. Finally, when you have met all the pre-withdrawal conditions, all documents will be sent to the bank’s compliance department, then the department will approve and record theloan.

How to Apply for Online Loans

In an economy like this, we need quick money without having to go through the complicated process that most banks or lending schemes go through before getting loans. Here are some of the top companies that allow you apply for online loans.

1. QuickCheck

QuickCheck requires you to show proof of source of income and also to choose an employment status. You can get loans or buy airtime on your phone with the QuickCheck app. It is required you provide your Facebook account, bank details and mobile number. To repay the loan, you must use a debit card or direct deposit.

2. Carbon

Carbon is a fast lending platform in Nigeria. Once you download the app and install it from the Google Playstore, you can register and get a loan instantly. The more you pay off the loans you get on time, the higher the credit limit you can get. You will need to provide valid bank and BVN details.

The interest rate varies from 5% to 30% and the loan tenure varies from 15 days to 6 months. To repay the loans, you can use your debit card or direct transfer from your bank account.

There are many other loan apps in Nigeria such as Fairmoney, Branch, Palm Credit and so on. Be careful when taking a loan to avoid extortion and embarassment.

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