Loan Guide

Tips on securing loans in Nigeria

There are traditional financial institutions which predate the banking system that engage in limited financial intermediation by channeling funds between lenders and borrowers. Informal loans in Nigeria are key to improving access to credit and social cohesion in towns and villages. Informal Markets Communities form themselves into small groups in mutual aids. Even with the advent of modern banking, informal loans in Nigeria still persists largely because banks are inadequate to cover towns and villages.
According to the world trade organization, some 80 to 90 per cent of world trade relies on trade finance. In 2016, world merchandise trade recorded its lowest growth in volume terms since the financial crisis of 2008, increasing by just 1.3 per cent. This is half the level achieved in 2015 and well below the 4.7 per cent average annual growth rate since 1980. In 2009, the volume of Nigeria’s international trade amounted to circa
As a result of the problems associated with establishing companies with huge asset requirements, coupled with the substantial capital often tied up in providing infrastructural needs like electricity, water, roads and communications, many prudent organizations have taken a lease in Nigeria provided by banks and finance companies. This approach tends to reduce the strain on the initial funding. Leasing in Nigeria has become popular in recent times due largely to the impact of industrialization and
The most important sources of bank loans in Nigeria include: paid-up capital, reserve fund, accumulated profit, and deposits. The word deposit represents the money in the funds of a bank’s various deposit schemes. They include saving deposit, fixed deposit, and demand deposit. The name quickly reminds one that money in a bank’s deposits fund is one that the bank is bound to pay back to the depositor, his agent, or his creditor. The depositor Liabilities
Islamic finance encompasses a broad range of financial products that are structured in compliance with Islamic law (Shariah). There are, however, diverging views amongst scholars and Ulama on the type of transactions that are permissible as Shariah compliant. Islamic finance in Nigeria is provided by a few niche lenders. Principles of Islamic finance The general principles of Islamic finance include the prohibition of usury or interest (riba), excessive uncertainty (gharar) and gambling (maysir), as well
Non-Bank lenders in Nigeria fill the SME credit gap which funds the growth of many small businesses. MoneyLenders Money lenders are offshoots of the Esusu system. In the absence of banks and other savings outlets, money lenders spring up either by relying on the funds kept with them by various unions or belonging to Esusu associations ,or money lenders promote some Esusu association; hence, the very knit and close relationship between the Esusu associations and
Commercial banks generally provide company loans in Nigeria and it represents a large proportion of their loans portfolio. It can be used to acquire fixed assets that have fairly long life such as major plant and machinery, and to fund the purchase or construction of buildings. FACTORING Factoring is a continuing arrangement by which the factor purchases all the trade debts due to a business as they arise, providing a sales ledger accounting service and