5 Factors to be considered before getting Personal Loans from Nigerian Banks

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5 Factors to be considered before getting Personal Loans from Nigerian Banks – Do you want to know what Nigerian banks consider before granting personal loans? For banks to give you loan, there are qualities required of you to meet up with. There are factors Nigerian banks consider before giving out loans. Once you merit those factors, loans will be granted for you. Thus this article contains those factors required before getting personal loans from banks. SEE FULL DETAILS BELOW

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What are personal loans?

Personal loans are loans granted to individuals for personal use, which includes rent, home renovation, emergency medical bills or holidays. Many people opt for personal loans because they are usually not secured by collateral.

Personal loans from banks have been saving lives for ages. At a point in life, people find themselves in situations where they need extra fund for different purposes, so they resort to getting loans from banks.

Factors to be considered before getting personal loans from banks

Employment status

Loans are giving to people that are working. Banks gives loans to people that they know within the stipulated time frame, they would be able to pay back the loan through their salary. The steady inflow of money into your account every month end determines the rate of loan that would be given to you. For instance, some Nigerian banks gives an employee of a private firm a minimum of N100,000 and a maximum of N30,000,000 personal loan. In contrast, an employee of a civil organization gets a minimum of N50,000 and a maximum of N20,000,000.

Age

Age matters a lot in loan. Your age determines your level of knowledge and manageability. Children and aged persons may not be considered as they are too tender or too hold to handle the money. The general rule indicates that; “applicants must not be less than 18 years at loan application date and not more than 55 years at the loan maturity date”. Though, different banks have their own age limit.

Work experience

Loan is something repayable and not free money. The number of years you’ve stayed in your business or you have been working proves your capability. Nigerian banks consider people who have worked longer in a sector than those that just started.

Repayment period

Banks offer repayment periods as long as 60 months. However, in the real sense, they want you to repay in a few months. If you are thinking of exhausting the whole 60 months, think again, because it might be a wrong move. For a loan that doesn’t require collateral, it is only logical that it is repaid in a few months.

Relationship with the bank

What is your relationship with the bank? How do you react whenever you come to the bank? Do you know that there are lots of packages from banks but it’s revealed to customers that have good relationship with the bank? This is not favouritism but a rule of thumb. People who have good relationship with bankers are more considered as it shows that you are known and it speaks for you that you can payback. Try building a good relationship with your bank to enable you get your personal loan with ease.

Additionally, to get personal loans, you must have an account with that bank and also you must be able to repay as at when due.

Go ahead and get your loan but have it in mind that you will repay your loan, therefore use the money wisely. Invest it in your business to enable you get higher profit.