As the economic harshness continues in Nigeria, more and more people are turning to personal loans for survival. In a bid to clear a debt, pay for rent or buy a car, people are increasing searching for the best possible loans they can find in Nigeria.
There is usually the confusion about either using a fintech platform or using traditional banks. Like most banks, fintech personal loan apps offer no collateral for a loan. However, their interest rates are much higher than the banks. Take for instance, RenMoney has an interest rate of 2.8%, Branch 15% to 34%, Carbon 5 to 15%, and Aella Credit 6% to 20%, when you compare this to Guaranty Trust Bank’s (GTB) 1.33% Quick Credit loan, the difference is staggering.
The stories of fintech loan startups harassing defaulters has become a cause for concern. They contact a defaulter’s friends and family with debasing messages. This is a scenario you won’t find with banks.
This is why we advice that you commit to a bank, especially with your monthly income so that you can get low interest loans that do not come with any form of harassment. For this reason we’ve only included loans from banks in our list of the best person loan platforms in Nigeria.
Best Personal Bank Loan Platforms in Nigeria
Guaranty Trust Bank Plc takes the first place for having the best personal low interest loan in Nigeria. The bank currently has the lowest monthly rate of 1.33%, a reduction from 1.75%. There are no expenses associated with this loan in terms of management, legal, or insurance.
Borrowers are not obliged to submit any collateral. This makes GTBank loans the most preferable for working-class Nigerians.
Customers of GTBank can apply for these loans using the bank’s USSD code, internet banking service, or mobile banking app. Customers must be between the ages of 18 and 59 to be eligible.
The second-best person loan interest rate in the industry goes to First Bank of Nigeria Ltd. The interest rate is reasonable at 2.5%. However, there is a condition that the interest, as well as a 1% fiat management charge and 0.50% credit life insurance, be collected upfront.
The duration of FirstAdvance is 30 days. When the borrower receives their monthly salary, First Bank will immediately deduct the loan amount from their account.
The Click-Credit loan was announced in February 2020, a time loan aimed to help UBA customers fulfil their immediate financial demands. Customers who qualify for this convenient lending facility can borrow up to N5 million.
According to information on the bank’s website, the loan can be repaid in 12 months at a monthly interest rate of 1.58%. There are also no expenses associated with this loan.
It is quite simple to apply for this loan. There is no need for any papers. You can use the bank’s USSD code or its internet banking services to apply.
For payday loans, Access Bank Plc charges a 4% interest rate, a 1% administration fee (fiat), and a 0.15% credit life insurance fee (flat). Salary earners with Access Bank accounts can get up to 75% of their wages, or other amounts that Access Bank may allow.
The payday loan from Access Bank has a 30-day term. Customers can use the bank’s electronic banking channels to apply, including their USSD code.
Zenith Bank’s short-term loans are only available to salary-earning professionals with accounts at the tier -1 bank.
These consumers can borrow up to 60% of their monthly salaries, but at a monthly interest rate of 2.16%. Borrowers must also pay a 1% flat management charge.