5 things to consider when choosing a Loan platform in Nigeria

Things to consider when choosing loan company in Nigeria

To choose any loan app or platforms in Nigeria requires careful consideration, planning and decisions, else you will find yourself in an unplanned dept loop that will be difficult for you to recover.

Sometimes, life isn't just fair, at some point in time when we think we have everything under control, unexpectedly expenses just show up. It can be a school feels, medical emergency, house renovation, or just trying not to lose an opportunity, at that point, an extra cash is needed.

So what do you do when you lack the funds to finance those projects? Quick, fast and easy loan will be the best option right? That's the reason for this article. As we will explain things to consider before choosing any loan company in Nigeria.

However, to see a reputable money lender might seems like a lot of hard work, that's what push you to opt-in for the easy option. Meanwhile, this can end you up in picking the wrong loan platform that can set you up for some rude awakenings or put you in dept hole that will be difficult for you to ascend.

Nevertheless, you don't need to worry about picking the wrong loan platform again as this article will guide you through by showing you five things to consider when opting in for loan in Nigeria. Whether you're just opting in for your first loan or it's your twenty-first already, you still need these five loan considerations to finance your needs without being worried.

5 loan considerations to choose a loan company in Nigeria.

1. Lender's Credibility

This is the most essential factor or part to consider when choosing a loan platform in Nigeria. Notability and years of experience of lender should be considered when choosing a loan platform, as the platform will have enough experience to guide you through all the application process that's required or involved.

Moreso, the loan company must be transparent enough to explain the in and out of their loan terms and conditions to you. 

Further more, you should check people's reviews and testimonies for further information about the loan company levels of credibility and experience in the sector.

2. Lender's interest rate

Rate in Loan can be a dicey matrix when evaluating  offers. Go for company that offers low interest rate. However, some lower Interest rate can be attractive but may serves as a ploy to attract borrowers. So be careful to confirm the lower rate is not set as a bait while in the real sense, the cost of the loan rate is higher.

Therefore, do not rush into signing an offer without a full disclosure of the loan terms and conditions. Take your time to read the terms and calculate the cost of the loan to see whether it's suitable for you or not. A good loan company should disclosed all information, including the interest rate early enough to guide you making your decisions.

In addition, if you notice any additional cost being added, demand for clarification. However, loan rate must be straight forward and properly disclosed in the offer letter, as you don't need to border about additional charges or hidden fees.

3. Repayment terms and flexibility

These phenomenas include repayment terms and conditions such as repayment tenor, amount and other conditions for liquidation. The loan company should disclosed these details properly to borrowers understanding.

You should also try to consider the cost of early payments (i.e liquidation). Unfortunately, some lenders charge a penal fee for paying off your loan early. However, some will collect no extra charges incurred at the point of liquidation.

4. 24/7 Hands-On-Desk customer representative

When choosing a loan company in Nigeria, availability of support and response time is important. Make sure you do some inquiries about the lending platform customer care services to see how competent they are.

In any financial relationship, support is crucial. You will always have questions and needs clarification on some basic terms, imagine waiting for hours to answer to your question especially when needed urgently? It's frustrating to say the least.

Response time here could also mean how long it takes to give response to a loan application. Confirm with the lender how long it would take them to process your loan application. If it is not within your preferred timing, then you should source the funds elsewhere instead of keeping you waiting unnecessarily.

In addition, a good loan companies prides themselves on timely delivery and efficient customer support. If you need urgent funding, you should this should be considered.

5. Confidentiality

Confidentiality is yet another essential factor to look into when choosing a loan company in Nigeria. How is the data you provided them handled? How do they handle defaulters?

It is no news that some lenders send threatening messages to people in your inner circle, informing them of your debts. Is this something you want?

A good and reputable lenders treat their borrowers request and data with the utmost confidentiality, in compliance with the Central Bank’s Lending Code on customer data privacy. In the case of default, they apply only legal means available to them by the law.

In Summary

In Essence, to avoid being lose urgent opportunities, get embarrassed, disappointed, or watch your children stay away from school, a smart and great decision would be to take a loan from a trustworthy and reputable financial institution.

However, is taking a loan worth it? Actually before you consider getting a loan, you might have get in touch with some friends and family, perhaps, the truth is with this present situation of Nigeria economy, it might be difficult to secure adequate financial support from them and they have their own needs to settles.


Hello! My name is Morichgan . I'm a content writer. I write stories about Finance, Businesess and Technology. Contact me via the contact page. Thanks.

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