Personal Loans

This article is a knowledge share about KwikPay.

Life can be unpredictable, a financial expense that one isn’t prepared for can throw off an individual or even a family off course and sometimes lending from family and friends may not cut it, so what do you do? This is where KwikPay comes in.

How much can I get from kwikpay?

KwikPay is an online money lender that uses your monthly salary to determine your credibility and approval. Disbursements are sent within minutes and loan amounts range between N10,000 and N2 million naira. This loan can be used to pay for expenses such as school fees, hospital bills, travel etc. 

Am I eligible for a Kwikpay loan?

To be approved, the following factors are considered, 

1. Your monthly salary and 
2. The length of service (how long you’ve employed for) and the position in your company.

 The loan is typically about 50% of your monthly salary and the repayment plan can range between 3 – 6 months. 

What are the benefits of KwikPay

1. You can make the decision on the amount you want to lend. So for example, if you get approved for more than you need, you can lower the amount so you won’t be obligated to repay an amount you don’t need. 
2. You can get approval in minutes which is really helpful in cases of emergency 
3. You can set up your repayment tenure and the money is sent into your account within minutes
4. Your salary is used to determine your loan amount which is done so that you can borrow within your financial limit
5. No application fee, no admin fees and collateral are needed. 
6. There are no hidden fees. Interest rates are communicated upfront. 
7. The repayment process is very easy. The payment is taken directly from your bank on the specified date or by using pre-written and pre-signed checks provided at the time of application. The checks will only be paid in on the date written on the check. Also, a reminder is sent to you via email at least three days before the repayment is due. 

How to apply for KwikPay Loan

1. Must be over 18, be employed and have a Nigerian bank account
2. Online application form
3. Completed Employee Status Inquiry or Employer’s Confirmation Form
4. Evidence of employment confirmation – Employment contract and/or recent letter of promotion (if applicable) works
5. Employment ID and valid means of identification (passport, drivers license, national ID etc.)
6. Credit checks (If you’ve taken any loans prior to this at any financial institution in Nigeria, the repayment of these loans are factored in)
7. A guarantor may be needed (this is dependent on loan amount)

Conclusion

KwikPay is an easy and available option when unplanned financial commitments occur. The process is available 24/7 online and approval and disbursements are done within minutes.

To get more information about the process and any other questions you may have, you can visit their website at www.kwikpaycredit.com or send email to them at info@kwikpaycredit.com. Bear in mind that we have agents at loanspot who are also willing to help you through the process. Click here to reach out to us!

Economic inclusivity is one of The Federal Government’s goals. This works on the belief that every Nigerian can contribute to the economy of the country, no matter their occupation or status. One way the Federal Government expresses this belief is through the Government Enterprise and Empowerment Programme, which executes schemes such as Trader Moni and Market Moni.

In this article, we will consider what you need to know about Market Moni. 

What is Market Moni?

MarketMoni is another scheme under the Enterprise and Empowerment Programme (GEEP). This programme was created to provide financial assistance for individuals of low-income status. Financial support is achieved through the provision of easily accessible, fast and interest-free loans. The only added charge is a five per cent (5%) administrative fee. The Bank of Industry executes the programme. 

How does Market Moni work?

Market Moni provides loans with zero interest to market women and traders, craftsmen, the youth and those engaged in small to medium scale agriculture. Market Moni is a Federal Government social intervention programme, meant to aid sections of the Nigerian population make ends meet.

 Who can get a loan from Market Moni?

Anyone can access loans from Market Moni so long as they are a petty trader, craftsman or farmer in Nigeria, and as long as they belong to an accredited cooperative or market association. Market Moni is open to all owners of petty and small-scale businesses, such as market women, foodstuff sellers, fruit vendors, farmers and the youth.

How much can you get from Market Moni loans?

The amount offered in Market Moni loans varies on different levels, just like Trader Moni. Recipients of Market Moni loans are eligible to collect loans ranging from N10,000 to N100,000 per beneficiary depending on the business. These loans do not have any interest charged on them; however, they come with an administrative fee of 5%, which is only charged once. Beneficiaries of Market Moni are eligible for higher loan amounts when they repay the first loans within the stipulated period. 

How long do I have to pay back Market Moni loans?

The period for repaying Market Moni loans is six months. There is also a two week grace period to ensure repayment. Once a beneficiary has repaid the loan, they become eligible to request for a higher loan. 

How do I get a Market Moni loan?

Getting a market Moni loan is simple, you only need the following requirements;

• Your Bank Verification Number
• Proof of membership to a cooperative or association
• Your business must have a location.
• Your cooperative can stand as a guarantor in your loan application. 

As Market Moni is a cooperative-based loan, to apply, your cooperative or association must indicate interest in Market Moni. The Bank of Industry executes the loans, and so all applications go through them. You can apply via the Bank of Industry Website www.boi.ng/marketreg or through phone at 0700-CALL-BOI. You can also pay a visit to any Bank of Industry office branch, situated all over the country. 

CONCLUSION

Market Moni provides financial assistance to petty business owners who need aid to sustain their businesses. The GEEP aims to support all businesses, and if your business falls under this category, you and your cooperative should consider registering and applying for Market Moni loans.

Getting a loan is hard work. Anyone who has ever applied for and obtained a loan can tell you the process can be tedious, especially when you do not have any collateral. Lending money is serious business for loan providers because there is the risk that the loans are never paid back. So, what do you do if you are searching for a loan? Trader Moni.

In this post, we’ll look at what Trader Moni is, and why you should consider it if you are in search of a loan. 

What is Trader Moni?

Trader Moni is a loan provision scheme, set up by the federal government of Nigeria, just like Market Moni, but it is unique in the sense that it is created and caters for petty traders and creatives in Nigeria specifically. It is a microlending tool in the Government Enterprise and Empowerment scheme set up by the government to support local businesses and crafts. The Bank of Industry executes the programme. 

How does Trader Moni work?

It works on the idea of providing interest-free loans to petty traders and artisans. The more you collect and payback, the higher your credit scores, which enables you to get more loans.  

 Who can get a loan from Trader Moni?

Anyone can access loans from Trader Moni so long as they are a petty trader or craftsman in Nigeria, and as long as the base loan amount of ₦10,000 can help your business grow. It is open to all owners of petty and small-scale businesses, such as kiosk owners, foodstuff sellers, cobblers, tailors, fruit vendors, motorcycle and tricycle (Keke) riders. 

How much is available from Trader Moni?

 The amount offered in Trader Moni loans varies on different levels. You start from a base loan of ₦10,000. Once you pay back the loan, you become eligible for the next amount which is ₦15,000. The amount available to you increases the more you pay back the loans, up to a ₦100,000. As soon as you pay back your loan under three months, you automatically become eligible for the next amount. 

How long do I have to pay back Trader Moni loans?

Six months. You are expected to pay ₦430 every week for six months. However, to become automatically eligible for higher amounts, you can pay back in three months, which is a payment of ₦860 every week. As soon as you can pay back the loans within six months, you become eligible for the next loan and a higher amount. 

Do I need a bank account for Trader Moni?

Unlike regular loans you get from your bank, which require you to operate a bank account with them, Trader Moni loans are administered to the states in Nigeria and therefore do not need you to run a bank account for the first loan. Subsequent loans, however, require a BVN and bank account. The loans are administered to the states by the Bank of Industry. 

Conclusion

The loan platform provides financial assistance to petty business owners who need that little push to sustain their businesses. If you fall under this category, then Trader Moni is just what you need. 

Everyone needs a little financial push now and then to meet their needs. Loans help to give such a push, but most loans are for business purposes and usually require a guarantee in collateral. Not every financial need is mainly for business, and so there’s a space for personal loans; consumer lending deals with this kind of loans. 

What is Consumer Lending?

Consumer Lending refers to loan services provided for personal or household use. They are long-term loans made by banks and other financial institutions to individuals. These loans are generally unsecured as opposed to business or commercial lending, meaning they do not require collateral.

Why do people need consumer lending?

Consumer lending provides funds for personal, family, or household needs. Suppose Mr Johnson, a mechanic, seeks finances to pay for his children’s school fees or to pay for the rent — Mr Johnson would need a consumer loan provided by his bank or any other financial institution. 

Where can one get consumer Lending?

Accessing consumer lending is not a difficult task, as consumer loans can come from a host of loan providers. These loan providers include financial institutions or other loan platforms such as PayLater and O-Kash. 

What are the types of consumer loans?

Consumer Lending provides consumer loans for many individual/family-related purposes. The most common types of consumer loans include:

• Personal loans: These loans help meet personal purposes.

• Auto loans: These loans facilitate the purchase of cars for personal use.

• Home loans: Also known as mortgage loans, they are used in payment of loans or house purchases.

• Student loans: These loans help to pay for tuition or academic purposes.

• Credit cards: Credit cards are a type of loan where borrowers have a limit to which they can spend on any purposes. The loan is repaid along with interest at a specific date. 

Do consumer loans require collateral?

Consumer loans can either be secured or unsecured. Secured consumer Lending involves loans that are backed by collateral. In the event where the borrower defaults (not paying back the loan), the loan provider has something to take over or fall back on. 

Unsecured consumer lending, however, is the exact opposite. This involves loans that are not backed by collateral. If the borrower defaults in payment, the lender has nothing to fall back on. 

What categories of consumer loans are there?

Consumer lending involves loans that are either close-ended or open-ended. 

Open-ended loans are loans given to meet any purposes up to a predetermined limit. At a specific date, the borrower has to make a payment on a minimum amount of the loan. Interest is charged on loan if the borrower cannot pay this back at the agreed time. An example of open-ended loans is credit cards. They are usually unsecured. 

Close-ended loans are given for specific purposes. Usually every month, repayment of close-ended loans is made by instalments. Close-ended loans are typically secured loans. 

Conclusion

Consumer loans are the best option if you’re on the lookout for quick ways to finance personal spending. Their primary appeal is the speed at which they are issued and the fact that most do not require collateral.

If you ask anyone what they think about the concept of a loan, you’d find that almost everyone would have a similar definition — a loan is simply money or financial assets given to an individual in need of funds, with a promise to pay back at a specific time. It’s pretty much basic knowledge. 

If you looked further, you’d realise most persons were aware of the fact that getting a loan is not just clear and cut — no one technically lends anyone money without a guarantee, and that’s why collaterals exist. Additionally, the process of getting a loan admittedly can be complicated. This is because no one wants to lend to someone who can’t fulfil repayment obligations. 

However, not everyone can afford to provide collateral or even meet all the requirements of a standard loan application. This doesn’t mean that there are no loans to cater to this class. That’s where Microlending comes into play. 

What is microlending? 

Microlending, also known as microcredit refers to small loans given to people with (often without collateral) to start small businesses. Take, for example, Mr A, a trader in household provisions who needs to restock his shop. As a sole proprietor, he doesn’t have collateral to get the loan he needs. His low financial status and the lack of collateral do not necessarily tick the requirements boxes. With microlending, however, Mr A can get the funds he needs to carry out his plans.

Microlending is usually centred upon the development of small businesses as opposed to the traditional motivation of making profits from interests on loans. Where conventional loans look to make a profit from interest received. Microlending offers the opportunity for businesses to grow and develop through loans, as well as eradicating poverty. Occasionally, some microlending facilities include options to coach these sole proprietors to be better in business. 

What is microfinance?

Microlending is a part of a much larger picture that is Microfinance. Microfinance is an umbrella term that refers to loans, savings, insurance, transfer services and other financial products targeted at people with deficient economic status. As aforementioned, these loans and other financial products are usually given without collateral. 

What is a Microfinance institution?

Every loan has a facilitator. The facilitators of microfinance are microfinance institutions or individuals that provide micro-lending services. 

How can you access microlending in Nigeria?

Microlending institutions are everywhere in Nigeria. With one of the most popular being ‘microfinance banks‘. There are also peer to peer lending groups that help to facilitate microlending. Also, over the last few years, the federal government-sponsored microlending service – Trader Moni has gained traction and is becoming very popular among petty traders in Nigeria.

The loans are typically low interest, and all you need is a valid reason for taking out the loan and a suitable repayment plan. Micro-lending is the quickest way to get small scale loans. 

Conclusion

Micro loans in Nigeria are moving rapidly to the traditional banks as well. This is because microlending has proven to be very profitable over time. The Central Bank of Nigeria also swung its full support around microlending in Nigeria to help them achieve their goal of financial inclusion.

Clearing out your debts isn’t easy, and it is harder when you have not won a lottery jackpot. Sometimes it takes all your monthly earnings to keep up with monthly bills and savings, let alone making monthly loan repayments. Living a debt-free life is everyone’s goal.

However, there are many ways to get out of debt, and not all of them will make you depressed. Look at the alternatives stated below. It will help you get out of debts faster.

5 Ways to get out of debt

Here are five ways to get started.

1. Always pay more than the required minimum amount.

One way to speed up debt reduction is to pay more than the required amount on loans every month. This strategy works best since every payment made over your minimum monthly payment is made directly to the principal of your loan. The more you can pay every month, the faster you reduce your debts. 

2. Consolidate debt with a personal loan

Merging your high-interest rate debts with a personal loan is another smart way to get out of debts quickly. This method means taking out a personal loan with a lower interest rate, a cooperative loan for instance, to pay off existing debts, usually with high-interest rates.

This strategy enables the borrower to focus on repaying debts with a lower interest rate compared to the high-end interest rates. Personal loans are mostly suited for debt consolidation because they come with fixed interest rates and fixed monthly payments. So you know how much cash you owe in a given period.

At this stage, having your own collateral is a great step forward to avoid loan rejection, and get you the loan to clear off your debt.

3. You can earn more money.

Like we have mentioned earlier, meeting monthly financial obligations can be overwhelming. If you’re tight on cash every month and can’t seem to meet up with your bills, it may be time to revamp your income in whatever way you can. This may mean working more hours or picking up a side hustle to boost your income.

If you make more money, channel all the extra cash towards paying off your debts. Steer clear the temptations of spending such money.

4. Cut your expenses drastically.

While earning extra money is a smart way to reduce your debts, cutting your expenses at the same time will get you out of poverty. Although cutting back on spending can also be a more comfortable alternative to working more hours, but don’t forget that you can do both.

Start with the little things such as subscription payments, reducing your grocery lists or even postponing vacations. Cut the costs of what you want and focus more on what you need.

5. Stop racking up more debts.

Finally, you’ll never get out of debt if you don’t adopt a disciplined spending habit. Stop borrowing to buy things you can’t afford. Remember, every loan application you make appears on your credit report and ultimately affects your credit score.

Conclusion

To start a debt repayment plan that works, you need to stop adding to your debts. And make sure you stay away from taking out new loans unless you need to.

To stay out of debt, always learn to live within your means instead of consistently and conveniently using loans as your support; seek investment opportunities to help you earn more and you’ll be living a debt free life in no time.

And if you run into bankruptcy as an organisation, find out how to get a loan after going bankrupt.

In Nigeria, there are no comprehensive policies or law on bankruptcy. Individuals are declared bankrupt when they are unable to meet their total liability. But corporate bodies are insolvent in the event of the company being unable to pay for its debts. Bankruptcy is often misunderstood as a financial ruin for life when itis a way to give the debtor a clean slate to his/her debts.

The Nigerian bankruptcy act of 2004 stipulates that a person (the debtor) is declared bankrupt if a creditor has obtained a judgment or final order against him for any amount, and execution thereon, not having been stayed, has a bankruptcy notice served on him.

How To Get A Loan After Bankruptcy

While applying for a personal loan after bankruptcy, there are some steps that you should follow:

• Check your credit reports: check your credit report regularly and ensure that it is being updated to reflect an accurate report. You can get your free credit report annually.
• Proof Of Income: As you apply, you must prove your current flow of income. This will show that you can pay back the loan even if you are bankrupt. The proof will include your side hustle or any other form of income that you may get to reduce the chance of being rejected.
•  Disclose The Facts: You can prepare a note explaining the conditions that led to the bankruptcy and how you’re solving the issue. Not every bankruptcy is caused by mismanagement of funds. If some unforeseen circumstances caused your bankruptcy, you might get a better chance.

You should compare the terms and conditions of different lenders. Look online for where you can get the best personal loan deals and see the loans and a variety of options of where to get them. You might not be eligible for the best rates, but you might still get something that works perfectly for you. 

How To Improve Your Chances of A Loan

While it might take years for your bankruptcy to leave your credit report for good, the first step to increase your chances of getting a loan is to improve your credit score. You have to make conscious efforts to build your credit score as it improves your chances of getting a loan, and one way to do that is to follow the guidelines stipulated in the 5Cs of credit. However, it is strongly advised that you wait for a year or two after bankruptcy before applying for a loan.

There are ways to increase your chances, and they include:

• No missed monthly bill payments
• A secured loan is always better. Be sure to pay off the loan balance every month
• Ensure you keep a very low credit profile to at least less than 40% of your overall credit allowance

Conclusion

While it might be harder to get loans after bankruptcy, you might have to pay higher rates when getting a personal loan. However, there is no reason to pay ridiculous rates. Watch out for lenders and others who will tell you they don’t do credit checks because it might be a trap to get you to pay high-interest rates. 

You should also consider looking for alternatives to personal loans if you can’t qualify for a reasonable interest rate.

Considering the harsh realities facing Nigerians amidst the global lockdown and the projection of the world economy slipping into depression, access to loans is an excellent way to jump-start the moratorium on most businesses.

People seek different ways to access to loans, usually with minor success, but few know about how accessible loans are through financial cooperatives.

What is a Financial Cooperative?

A financial cooperative is a financial body that is owned and operated by its members. A financial cooperative aims to act on behalf of a unified group of people while offering traditional banking services.

These bodies are more concerned about the financial stability of its members rather than focusing on profits as banks would.

It is basically a peer to peer social lending platform, and they vary in sizes and form.

The structure of Financial Cooperative.

These cooperatives have open membership. The members of the cooperative are the owners and as well the customers. The size of the cooperative depends on the number of members who take part. The more members a cooperative has, the more resources it offers in financial products.

Financial cooperatives are usually known for its low-interest loans and sometimes zero-interest loans and high-interest savings. This comes in very handy when you’re trying to manage your debt. Some financial cooperative have retirement plans in place for its members. Credit unions are an excellent example of a financial cooperative.

Types of cooperative in Nigeria

Primary Cooperative– Operations of primary societies permits its members who live in the same locality and share the same goals and aspirations to go into synergy to achieve their goals collectively.

Secondary cooperative. These cover a more extensive range of operation. It’s formed by the combination of two or more primary cooperative societies with its members and shareholders. They are the union and councils.

Tertiary Cooperative – These consist of both primary and secondary cooperatives. 

Industrial Cooperative – This is created by people who have the same craft or employment in common.

How to get a loan from a cooperative society

1. First, join a cooperative of your choice, preferably one that’s focused on uplifting its members financially.

2. After you join the cooperative of your choice, you must inquire about the loan services.

3. Be a member of the cooperative for a specified period before you can be eligible for a loan. This period may vary depending on the bye-laws of the cooperative.

4. The requirements of cooperatives will differ depending on different unions, but unlike banks that deal majorly with asset-based lending, the processes required for loans in a cooperative society are less strenuous.

5. Loans are granted at a very low-interest rate to ease repayment for their members.

Conclusion

Cooperative lending is also being protected by the state and federal laws of Nigeria. This is to ensure that it treats its members equally and settle disputes among members. It is a brilliant approach to consumer lending, really. Also, know that the cooperative loans could also come in different forms other than cash – it could come in the form of asset acquisition, land, mortgage, etc. 

In most cases, membership is open to everyone. As long as you belong to the organization or locality, the cooperative society is created for.

We know that being in debts can be an overwhelming and weakening experience. But there are intelligent, proven ways to manage your debt and return you to sound financial health. Take a deep breath to examine all your options and pick the ones that can aid you the most.

Regardless of the quantum of debt, everyone with debt obligations has to manage their debts. If you have a small debt, you have to keep up with your payments, so it doesn’t get out of control. On the flip side, if you owe a lot of money, you have to pay more attention to paying off your debt while meeting other obligations.

Here are five ways you can manage your debt

1. How Much Do You Owe?

Please make a list of your total outstanding debts and other monthly financial obligations including their due dates where necessary. Having all the debts at a glance will help you see the bigger picture and stay in focus of your complete debt picture.

It is not enough to create a list and forget about it. Make reference to your debt list periodically and update accordingly, especially as you pay bills. This will help you ascertain the level of your debt at any time.

2. Monthly Early Repayments

Late payments make it more challenging to pay off debts, considering you’ll have to pay the penalty for every payment you miss. It would be best if you tried to make early repayments on your loan as it helps reduce the interest rate on the loan amount due.

If you miss a payment, do not wait for the next due date before you make your outstanding loan amount. It is better to pay as soon as you remember. This will keep you further away from being reported to the credit bureau or ultimately affect your credit score.

 

3. Plan With a Monthly Budget 

Keeping a budget ensures you have enough money to meet your monthly obligations. You can plan well enough in advance and take early action if it looks like you won’t have enough cash for your bills in the coming month or next. A budget also helps you plan to spend any extra money you might have left judiciously. This extra cash can be used to clear your debt faster.

4. Decide Which Debts to Pay off First

Paying off debts with high-interest rates is often the best strategy because they are more expensive than other debts. Of all your debts, the one with the highest interest rate usually gets priority on repayment because it’s costing the most money.

You can use your debt list to prioritize your debts in the order you want to pay them off. However, you can also pay off the high-interest debts with low-interest loans such as a cooperative loan, this helps in refinancing your bigger loans.

5. Make at least the Minimum Payment

If you can’t afford to pay all your debts, at least make the minimum payment on the loan amount due. Of course, the minimum payment hurts your chance to make real progress in paying off your debts. But, it keeps your debt in check and keeps the loan from going into default.

Conclusion

There are several other ways to manage your debts apart from the ones listed above. The most important thing is identifying your strengths and weaknesses in the management of your debts and work towards them accordingly. Managing your debts and credit score is one simple step to avoiding loan rejection.