Loans are a big source of financial assistance for individuals and businesses. They provide an alternative source of income necessary for personal needs and achieving business goals.
As a person or a business, before you can approach a financial institution to borrow money, here are 5 checks to make you eligible.
1. Have a bank account:
You need to have an existing Nigerian bank account. Most financial institutions use your account details to verify that you’re eligible and also deposit your loan funds. Even if you’re getting an instant online loan in Nigeria, you’d still need a bank account for it.
2. Be of legal age:
To qualify for a loan in Nigeria, you must be 18 years and above. Younger persons are not able to access loans from any platform.
3. Have a good credit rating:
Financial institutions will run a credit check to determine how likely you are to repay your loan. A good credit score will give you the best chance of getting approved with a good interest rate.
4. Meet Know Your Customer (KYC) requirement:
KYC stands for Know Your Customer. This is a standard verification process which requires you to provide the following:
Proof of Identity (D card, passport or driving license.)
Selfie (Photo of yourself, with your entire face visible.)
Proof of Address (bank/credit card statement or a utility bill.)
5. Be able to repay:
To access unsecured loans, a good credit rating is an indication of your ability to pay back. However, Secured loans require you to pledge assets (e.g. property, movable assets, etc) as collateral for the loan and a guarantee that will be able to repay.
As an individual or a company, you should understand the terms and conditions of a loan offer in order to choose the one that is best suited to your financial capabilities and needs.