How to get a bank Loan in Nigeria

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Posted by on Wednesday May 2, 2012 11:6:10:

Getting a bank loan in Nigeria truthfully speaking is not always an encouraging thing to do as Nigerian banks tend to make it not so attractive with high interest rates and other strings attached despite the harsh economic realities and low level of infrastructure in the country. This does not mean however that you cannot get a bank loan if you really want to.

There are different types of bank loans and you should consider first what purpose you need the loan for, before deciding on which one to apply for:

Kinds of bank loan
Personal: These are loans that are available to the individual person and is repayable by the person to.

Corporate:
These are loans a bank can offer to an incorporated company. There are several of such products available at your bank.

Some Types of bank loan:
- Term loan: A loan given to a customer that is based on a specific need, pre-agreed repayment terms and interest rate.

- Overdraft: If you have a current account with your bank, you can easily get an overdraft. It allows you to keep writing cheques beyond your actual funds as long as you can repay within the required period else you will be charged. You also need to have an active account to do this

- Mortgage loan: This is a specific loan that allows you to purchase or build your own home or office. It allows the holder to acquire real estate and repay at the specified time frame.

- Naira credit card: These are loans that a bank gives to employees who have a steady salary account or people with regular fund inflows.

Basic requirements for getting a bank loan in Nigeria
- Referee
- Collateral equivalent to the loan
- Filled and signed application form

How to get a loan
- Just walk up to any bank you have a long history of doing business with and apply for a loan or make enquiries about their loan products.
- Check to see their terms of agreement and repayment terms
-Do a feasiblity study on your sources of revenue for the intended loan period.
- Compare estimated revenue with bank charges on that loan
- If profitable, apply for a bank loan with proof of estimated revenue
- You would also submit personal copies of id, address for personal loans and certificate of incorporation for corporate loans
- If approved, make sure you make repayments before deadline else be ready to face the higher charges

Tip:
Naira credit cards and overdrafts are the cool way to go if you just need some short term funds.



Comments:
how can I start import with little amounts? Reply by olajide on Thursday May 10, 2012 at 11:38:9:

Hello sir. How can I start importation with a little amounts of capital? I need your idea.




Re: how can I start import with little amounts? Reply by Felix Okoli on Thursday May 10, 2012 at 11:38:9:

well, if you are talking about starting importation with little capital, the first thing you should thin about are the fixed costs such as shipping costs. To ship a KG of an item from the USA to Nigeria costs about $50 using DHL so you can then decide on how much you want to spend on buying the item and how many units you want.


Re: How to get a bank Loan in Nigeria Reply by mina pepple on Tuesday July 10, 2012 at 12:6:53:

I WANT A LOAN FOR BUSINESS,I HAVE A PROPERTY AS A COLLATERAL IN PORT HARCOURT,TWO BEDROOM FLAT TWO SETS ONE BEDROOM FLAT ONE SET ,THE COMPOUND IS FENCE,I NEED ,2MILLION,





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