Lagos is the epicenter of business in Nigeria and most Lagosians have a side hustle which they hope will grow into a fully fledged business. But we all know the growth process is usually constrained by a lack of finance, which is why we need loans. In this educational article we will discuss where to find loans in Lagos.
Lenders typically offer terms of one, three and five years – and it can be tempting to opt for a longer term in order to reduce the monthly payments. But this means you’ll end up paying more overall.
Credit history
The rate you pay will largely depend on your credit score. Most lenders carry out a credit check when you apply for a personal loan and if you have struggled with debts in the past and have a poor credit history, you could be turned down or charged a higher rate of interest.
Personal loan fees
Some lenders charge arrangement fees, which can bump up the cost of credit. You should also beware of any early redemption fees should you choose to clear the debt before the end of the loan term.
Debt consolidation
Some borrowers take out personal loans in Lagos in order to consolidate other debts. Known as a debt consolidation loan, this is when you use the money from the loan to pay off high-interest debts accumulated on credit cards, store cards and/or other loans.
If the interest rate of the personal loan is lower than the interest rate of other debts, this can be a good way to reduce your overall repayments. It also allows you to repay your debt with one monthly payment instead of managing multiple debtors
Compare personal loan rates
When you compare personal loans, make sure you look at the detail of each option. You should compare each lender based on a number of factors such as the interest rate, arrangement fee and if you can repay early without extra charges.
You can also compare personal loan lenders by how likely they are to accept you.
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