If you are in Nigeria, loans are something you would have toyed with before. Here, I’d be sharing the top loan organizations in Nigeria, both those that have apps that you can use to get loans and those that don’t.
PS. This list and ultimately review isn’t a recommendation of any of these loan organizations. As a matter of fact, I would always recommend borrowing from friends and family over-borrowing from these organizations if you are not borrowing for business. The interest rates from most loan organizations in Nigeria are just out of this world, so you would need to think critically before making your decisions.
A list of loan organizations in Nigeria
- Accion Microfinance Bank
- AB Microfinance Bank
- LAPO Microfinance Bank
Accion Microfinance Bank
Accion looks like they offer a range of options that go beyond just loaning money. The company runs a microfinance bank, and you’d probably have to register an account with the microfinance bank to be able to get a loan.
The company offers a range of loans that we will categorize into just two. SME Loans and personal loans. I didn’t go through the registration process because they were requesting my BVN, so you would have to do your inquiries concerning how much interest they take on loans. That’s like the first thing to ask if you ever want to take a loan from any Nigerian microfinance.
AB Microfinance Bank
AB microfinance bank is another loan organization to take a look at. Like Accion, the company also offers a range of other banking features. You can get Micro Loans, SME Loans, and Housing Loans.
On their Micro loans, you get somewhere around 6.6% and sometimes down to 5% payable interest on reducing balance, which is not very reasonable in my own opinion. You get 3-4% interest on their SME loans, which I also love, while their housing loans attract between 5 and 5.5% interest rates. (Here is what a reducing balance interest means).
These interests are charged monthly according to what I saw on the company’s website. So if you have to repay a loan for a year, you should carefully calculate the monthly interest deductions and add them up. These Interest Rates Aren’t Per Annum.
LAPO Microfinance Bank
LAPO is like one of the most popular micro-finance banks in Nigeria, so I don’t think they need too much of an intro again. You would have heard a lot about this company, and I don’t plan to change anything.
LAPO offers different types of loans, from student loans to agric loans. The company takes a 5% interest per month. So on a 500,000 loan of 9 months, you will repay 633105, an average of 70,000 every month. While you read through the terms, consider, not just the problem the money will solve now but also the interest they’ll request when you have to repay. Always remember that these interests are on “reducing balance” which means you’d accumulate 5% interest every month for as long as you haven’t completed the repayment.
Renmoney is very popular in Nigeria and it seems the company does more work with payday loans, personal loans, and micro-business loans. To qualify for loans with Renmoney, you will need to be between the ages of 25 and 59, have paid employment, and own a registered business that is bringing steady revenue. The company promises loans of up to 6,000,000 Naira.
It’s like a peer-to-peer lending platform, with Renmoney being like a mediator between lenders who are the investors and the borrowers who are the loanee.
The interest rate is cut-throat. A 35.76% interest. To put that in perspective, a loan of 670,000 will require you to repay 1,043,208 in 24 weeks (6 months).
Renmoney also doesn’t have good reviews on Trust Pilot, so you want to be careful when dealing with them. The company is also repeatedly given like a 1 star for customer rating, trustworthiness, and effectiveness.
So would I recommend Renmoney? Absolutely not. Do your research and decide if it’s worth it. So that is my four main loan organizations in Nigeria. They all have peculiarities, so take your time to consider all of the plans they offer. Always ask them a lot of questions when it comes to the repayment plans and the interest rates they will be taking. You don’t want to be burned bad by a microfinance bank in Nigeria.
John follows everything happening in the tech industry, from the latest gadget launches to some of the big-name moves in the industry. He covers opinionated pieces and writes on some of the biggest names in the industry. John is also a freelance writer, so he shares articles on freelancing every now and then. email: [email protected]