As we all know, it’s very difficult to get a loan in Nigeria. You have an idea and the bank may request you pledge assets as collateral that you may not have. That’s a big challenge for anyone who’s trying to start a business.
Here are some tips to ensure your application is successful and not rejected.
- Check the credit requirements. You should check what credit rating your lender requires, and then see if you meet them. If you’re required to have good credit, it usually means no negative listings on your file. If you’re unsure, it’s best to ask the lender before you apply. The majority of lenders have online chat services that can offer assistance.
- Find out the minimum income requirements. Each lender will have a different minimum income requirement, and this minimum may also change depending on the loan type you’re looking at. The minimum income for personal loans is listed on finder.com review pages, so you can confirm this before you apply.
- Ensure your loan purpose is allowed. Check with the lender to see if your loan purpose is okay. If you’re taking out a secured personal loan, there will be more restrictions, although you may also find limitations for other types of loans as well.
- Verify your details. Double-check your details and information before you submit your application so that the lender has no reason to reject your application on this basis. Is your application filled out entirely? Is all the information accurate? These are the type of questions that can aid you in verifying your details.
- Check that you meet the employment requirements. Do you need to have established employment at one company for a certain amount of time? Do you need to be receiving a regular income into your bank account via direct deposit? See what the lender requires of your employment and ensure you meet that.
- Don’t hold more loans than you can afford. In short, lenders want you to be able to repay your loan. The main reason Nigerian lenders won’t lend to you when you have a number of loan balances already is because they don’t think you’ll be able to pay back the new loan. You could look at consolidating your loans or repaying some of them before applying for a new one.
- Check that your collateral is sufficient. See what your lender requires in terms of collateral and check that the asset you plan to use meets their requirements. If you’re in doubt, get in touch with the lender before you apply.
There’s no way to completely guarantee that your personal loan application will be approved. Even if you meet all the eligibility criteria listed by a lender, the lender can still reject your application at its discretion. What you can do is avoid common mistakes that lead to personal loan application rejection and follow the tips we’ve discussed to improve your chances of approval.