There are many reasons to borrow money, and a personal loan can be easier to apply for in comparison to other types of financing such as credit cards, or a personal line of credit from your bank. There are also no restrictions in how you spend a personal loan in Nigeria.
Reasons in to get a Personal loan in Nigeria
There are a variety of reasons why people take out a personal loan, including the following:
- Paying off credit card debt
- Consolidating other types of debt
- Investing in a business
- Engagement/wedding/honeymoon costs
- Home improvements/renovations
- Moving costs/relocation
- Funeral expenses
- Security deposit
- Down payment for a home
- Buying a car
- New job expenses/career development
- Medical bills
What do I need to get a personal loan in Nigeria?
To apply for a personal loan, the lender will typically ask you for your ideal loan amount, a description of how you’d like to use the loan, as well as some personal details, including your employment history. Your current income, debts and credit score will also be taken into consideration before getting approval for a loan.
If you have a steady income, a good credit score, and a healthy debt-to-income ratio, you’ll likely be at an advantage when applying for a loan. However, even if you have poor or no credit, StartCredits can find a lender that fits your needs.
Your debt-to-income ratio is the per cent of gross income you currently put towards paying off your debts. In Nigeria, if you have a debt-to-income ratio of 37 per cent or more, you may have some difficulty getting approved for the loan you want. In this case, you should probably consider paying down some of your other debts before applying for a new personal loan.