Borrowing instant loans in Nigeria has recently become easier with the advent of online only based lenders to the loan market. The lower cost structure enables them to lend collateral free instant loans in Nigeria at reasonable rate. Here are some tips on the questions to be asked before your loan is approved by the lender.
Loan questions
Each lender will have his own style of conducting an interview to determine the recipients of instant loans in Nigeria. No hard and fast rules can be laid down, for each customer must be treated in an individual manner according to his temperament and needs. One manager’s method may be to concentrate on putting the customer at his ease and then get him to talk easily and naturally, putting his proposal in his own words. Such a manager will skillfully guide the proposal by a brief question or two until he has a complete picture of the proposition. Another manager may have to identify the salient points from a flood of unconnected facts quoted by a garrulous customer. While another might have to prise the information from a shy or reticent applicant. Whatever the case, it is easy to miss the important facts in the course of a long and, perhaps, partly-irrelevant conversation.
When written down, relevant information about the loan can be expected to identify the following facts:
- Name
- Address
- Amount required
- Purpose
- Duration
- Scheme of repayment
- Source of repayment
- Security offered
- Present loan or overdraft, discount or credit- if any
- Rate of interest
- Amount of income
- Source of income
- Any other resources
By this time the manager should be in a position to judge whether the proposition is one that the bank can consider and, assuming that he is satisfied, and that the amount lies within his discretionary powers, the customer will be given a decision straight away. Where the applicant must be submitted to a local or regional head office, the final decision must not be pre-judged. However, if the manager is not completely satisfied he will examine the branch records for further information, as follows:
Credit items:
- Income from salary, pension, commissions, dividends or properties.
- Repeated credits from sale of stocks or shares might mean living on capital
- The weekly takings of a business
- Unusual and non-recurring credits may show the sale of assets, such as property or a motor car.
Debit items
- transfers payable to bookmakers indicate gambling on a regular basis.
- Rent or mortgage repayment give a clue to household costs.
- expense account activities may indicate a mode of living.
- Insurance premium payments may put the manager on the track of additional security.
- In a shopkeeper’s account, payees’ names on transfers will indicate his suppliers, while the amounts may provide clues about stocking levels.
- Property deals may be indicated.
Balances
- A steadily declining balance could be the result of living beyond income.
- A dormant balance tells nothing, but raises a host of queries.
- Salary all spent earlier and earlier each month is a danger sign.
- Trends in the swing of a business account balance may give a clue as to the health of the business.
Other information:
- The absence of normal items running through an account, or ceasing to appear there, such as:
- Income from salary, pension or other previously regular credits.
- Repayment to hire purchase or loan companies
- Normal periodic payments not made, e.g. rent, insurance premiums.
- Evidence from other sources of reference:
- Items in the bank’s safe custody registers.
- Records of bankruptcy.
- Records of guarantees given.
- Information from professional credit agencies.
- Information available in public registers, such as the companies register.
- Reports in trade journals or in newspapers.
- Trading figures and balance sheets.
- Evidence of bank accounts elsewhere.
Some customers omit the formality of asking the branch manager for a loan and overdraw their accounts without permission from, or even warning to, their banks. The best advice for any customer in need of temporary assistance, or in any way worried about his financial position, is to have a chat with his bank manager and explain the position.
Providers of instant loans in Nigeria
A lender cannot have a preconceived idea of what is the right amount for the potential customer to borrow. Any evidence the customer can produce to show what his or her needs are will help the lender to come to some reasoned conclusions. Asking the right questions also improves the quality of the decision which is finally reached, and it is in this area that banks can reduce the risks that they take and provide more instant loans in Nigeria to qualified borrowers.
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