Are you thinking of buying a car (New or Tokunbo)? Maybe you need a new TV or Fridge?, Most of us can’t afford to pay for such big-ticket items out of our regular income. Instead, we need to borrow collateral free personal loans online in Nigeria.
This type of borrowing is often referred to as an unsecured personal loan because you don’t need to provide an asset to secure the loan. With a secured loan, such as a mortgage, you provide an asset (your house) that becomes the property of the lender if you default on the loan.
The loan is issued based on the borrower’s creditworthiness, which means some people with bad credit may struggle to be accepted for an unsecured personal loan, or may be charged a higher rate of interest.
Fixed monthly payments
A personal loan, sometimes called an unsecured loan, is different from an overdraft because it allows you to borrow a fixed amount over a fixed term, usually at a fixed rate of interest.
Why do people take out personal loans?
There are lots of different reasons why people consider taking out a personal loan. Car purchases and debt consolidation are the most popular reasons, but many use them for home improvements, marriage or other purposes.
How much can you borrow with a collateral free personal loan?
The amount you can borrow with a personal loan will vary according to your circumstances and your credit score. Generally speaking, you could borrow up to N1m from most lenders. If you borrow any more, you could be asked to put up an asset as security (such as property or vehicle).
The amount of money people borrow using a personal loan can vary widely according to age. Older people borrow higher amounts of money than younger people.