Loans for Salary Earners in Nigeria

This article highlights some Loans for Salary Earners in Nigeria. Also, it provides the loan amount and interest rates of these loans.

If you are a salary earner in Nigeria, that is your work in a private company or public sector (government of Nigeria). This article is all about loans salary earners in Nigeria have access to.

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There are basically two classifications of loans.

• Online loans
• Loans from MicroFinance Banks (MFBs)
  NOTE: Both are MicroFinance Banks but one is an online platform.

Online loans are loans that are made available online by a company that allows an individual to get loans without having to go through a rigorous screening process.

Though there is an increasing concern over the mode of operations of these platforms when it comes to how they recover the loans given to their customers. These loan applications seem to have a strong hold in Nigeria due to increasing patronage from Nigerians.

Online loan apps have a very high disbursement speed as compared to the regular banks in Nigeria who for certain reasons won’t dare venture into such act. Their repayment plans and their accurate less demand for documents makes them seem to be the best plug for loans in Nigeria.

Online Loans for Salary Earners in Nigeria

Listed below are some online loans for salary earners in Nigeria.

PalmCredit

This is one of the most patronized online platforms for loan applications in Nigeria. This platform provides loans up to the sum of #300,000 in a very short time (3 – 5 minutes) without any form of collateral from the borrowing party.

It’s a quick borrowing platform that allows for the disbursement of #2,000 to #300,000 to its customers in less than 5 minutes immediately after they provide their complete and accurate documents within a business day.

Carbon

This is also a very strong digital platform that provides financial services to the entire public. Their services include but are not limited to the following: savings, investments, fund transfers, business loans, personal loans, etc.

Also, it has a very quick disbursement response of fewer than 5 minutes so long as the necessary documents are made available by the individual. Their charges or rate ranges from 2% to 30% depending on the loan repayment period or plan and also the amount to be borrowed.

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Branch

Branch is one of the most patronized online platforms for loans in Nigeria. It stands out as the most downloaded loan app in Nigeria as it has over 10 million Google Play downloads as of the second quarter of 2022.

The app uses its users’ smartphone data to determine the eligibility of its customers and they have a very high-interest rate ranging from 15% to 30% depending on the amount and the period of loan repayment or the repayment plan of the borrowing party.

They give access to loans from #1,000 to #250,000 within 24 hours of demand by the borrowing party. All the required documents for borrowing are a bank verification number (BVN), bank account number, phone number, and Facebook account.

Many loan applications especially online loan applications are known to recover their monies by harassment of their customers, especially through calls of contact and threats of arrest of the defaulters. This is possible because they have access to contacts on the phone of their customers. It has become a general rule not to owe them.

Microfinance Bank Loans

This section talks about Microfinance Bank Loans as a means of Loans for Salary Earners in Nigeria.

What Is Microfinance?

MicroFinance Banks are also known as microcredit banks which are banks that provide banking services to both low-income earners and the unemployed as well as individuals or groups of persons who would have no access to finance to build their capacity.

One basic or essential quality they provide is their immediate response to the necessity of those who do not have access to commercial bank loans. They are majorly patronized by low-income earners especially those without high asset value that can be exchanged as a form of collateral in order to obtain loans from commercial banks. Salary earners are their major customers because their salary allows them to exchange or pay back gradually to the MFBs.

Any salary earners looking for loan advances can walk into any legitimate or government-approved MicroFinance bank. However, these MicroFinance Banks offers loans at different interest rate hence it is advisable to apply based on the one that suits one’s ability as a salary earner in Nigeria.

Microfinance Banks that Offer Loans to Salary Earners

The list of government-recognized and approved MicroFinance Banks in Nigeria includes the following:

• Lapo microfinance bank
• Purple money microfinance bank
• CIT microfinance bank
• AB Microfinance bank
• Grooming microfinance bank
• Addosser Microfinance bank
• Asset Microfinance bank
• Bowen Microfinance Bank
• Capstone Microfinance Bank
• Cardinal Rock Microfinance Bank
• Cashconnect Microfinance Bank Ltd
• Cedar Microfinance Bank.
  The list goes on….

Questions that might come up for some concerning MicroFinance Banks:

Are there MicroFinance Banks that do not offer Salary Loan Services?

This is one of the basic financial services offered by both MicroFinance Banks and Commercial Banks. They offer loans to both individuals usually salary earners in other to attend to business and personal necessities as the need may apply.

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Requirements for Applying For Loans in Microfinance Banks

The major requirement for loans in MicroFinance Banks is that the salary earners must have their salary domicile with the bank. This is to allow the bank to be able to deduct the loan from the salary once it is paid by the end of the month.

Another requirement is that your loan is dependent on the amount you receive as a salary. This means that you can only borrow based on the amount you receive as a salary. Hence the bank always presents the borrower with several available options during their application.

It is important to note that just like every conventional lender will demand interest on one very loan, so will MicroFinance Banks. They develop special repayment plans with payments due at specific intervals depending on the agreements for their borrowers.

Some may require their borrowers to set some part of their salary in their account to serve as insurance should In case there is a default in the repayment, then It can be taken from the salary that has been set aside.

Final Notes on Loans for Salary Earners in Nigeria

There are several loans available to salary earners. The choice of whether to go for instant loans from apps which only require a few demands or to go for MicroFinance from banks which requires a lot of processes.

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