With the worsening state of the economy and the financial difficulties bedeviling the country, applying for loan in any of the Nigerian banks might be a good option for anyone who has what it takes.
Loans are actually money given on credit with interest attached to it. Loans from Nigerian banks come with its own merit and demerits. It has strict procedure for accessing it and stiff penalties for defaulters. Despite whichever way one looks at it, acquiring a loan for a good and valid reason is a good move. This is because the economy is not getting better soon, it’s therefore left for the populace to tighten their belts and apply some measures that will cushion the devastating effects of the economy.
It should be known that getting a loan in any Nigerian bank is not a walk in the park. You have to go through lots of processes and fulfill some criteria before any loan can be issued to you.
These criteria are what we’re discussing here:
1. Creditworthiness: Before any bank can give you any loan, they will run a credit check on you. This is even the first analysis you should do on yourself once the idea of getting a loan from a bank comes into your head. You should ask yourself questions like: Are you credit worthy? Can you pay back the loan within the stipulated time. Do you have someone of good repute that can stand in for you as a surety? Do you even have collateral? These and many more are the questions they will even ask you in the bank when you schedule an appointment to discuss the loan application and you should do a proper justice to them before applying.
2. Identify your loan needs: What do you want to use the money to do? Is it for a capital project or to support your business? Is it for your children’s tuition fees or to save someone in a health emergency? All these questions are very important that you have to answer them by yourself before applying for loan because the bank will definitely ask you why you want the loan. Please do not take loan from the bank just to fulfill your fantasy or go for a vacation. This is because after all the excitement dies down, the bank will definitely come for their money and it will be embarrassing and frustrating if you cannot pay. Also, do not collect loan just to oppress people with the money or show off because after the oppression, you too will be oppressed by the bank. It’s always better to cut your coth according to your cloth. Have clear intentions and be honest about it because this will contribute to the success of your loan application. Honesty matters a lot in loan application. You must be truthful and honest with your intentions, personal data submitted and other documents demanded. Any form of dishonest move might delay your loan processing.
3. Apply with precision and direction: When you go online or go the bank’s branch to apply, know exactly how much you want and enquire how much is the interest on the loan because every loan has an interest on it, except in few cases which is usually under exception rule. Also enquire about the necessary fees attached to the loan because some banks may remove these fees from the loan before giving it to you. Such fees like insurance fees and the likes don’t wait till the end in most banks. Demand to see the bank manager or the account officer face-to-face for a brief conversation about the loan as it’s this individual that can work on the loan application and make it come out successfully. It’s also good to know and state it categorically the way you want to pay back the loan, whether in instalment or at once. You should also be able to know the duration of the loan and the penalties for defaulting in paying back the loan. It must be noted that defaulting in paying a bank loan can land you in serious court case and as time goes on, the interest keeps accumulating and you must pay it or your property or collateral will be confiscated.. So, it’s always good to hang your bag where you hand can reach because some banks are not joking when it comes to loan recovery.
4. Application proper: In applying for a loan in a Nigerian bank, you will need to open or have an account with the bank first. You will also need to have used such money you’re requesting in the loan through the bank or have guarantor who has, you also need to print out your statement of account and you will need to show proof of income to show that you can pay back the money actually. You cannot open an account with a bank and start requesting for loan, they will doubt your creditworthiness. Except in cases where you are being recommended by a top ranking member of the society or you are already known in the society as someone who can pay the loan without much ado. It’s important to note that during the proper loan application, some other documents like your business registration certificate, driver’s license, National Identity number etc may be required of you. The application process won’t take you much time if you’ve all the required documents ready. Except in the event of delay caused by network problems or other factors, applying for a loan both online and in physical setting won’t take more than a day. After the loan application, you wait for the processing.
5. Loan processing and collection: This is the stage you have to be patient to get a feedback from the bank. In most cases, you will be notified through an offer letter, stating the duration of the loan, terms and conditions. When you receive this offer letter, make sure to go through it carefully before signing because after signing it, the terms and conditions are binding on you. However, in cases where the application is online, you will be requested to press the agree or disagree button in the terms and conditions page. Always read through everything carefully before clicking on anything. After these procedures have been completed, the money which you requested as a loan will be approved and sent to your account where you can have access to it from there.
