Loans

Find the best and affordable online loans in Nigeria. Save money by knowing the interest-free loans from loan providers. Loans from CBN, SME loans, Moneylenders, and Microfinance banks

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10 Things To Do Before Applying for BOI Loans

Irrespective of your political affiliation, the Bank of Industry loan is opened for everyone. No discrimination. Provided you fulfilled the eligibility requirements.

We’ll share with you some of the things you need to put in place before applying for BOI loan.

Ownership:

Bank of Industry is the oldest and largest Development Financial Institution owned by the Central Bank of Nigeria and the Ministry of Finance.

Below are the key things you need to know before submitting your loan application on BOI portal

  • Who can apply
  • What can be financed
  • Mode of disbursement
  • The amount that can be financed
  • Collateral
  • Bank Guarantee
  • Track record
  • Required documents
  • Evidence of business registration
  • Products

Who can apply

It is very important to know that BOI doesn’t finance individual loan application, that isn’t its mandate.

The mandate of the bank is to finance enterprises or companies that duly registered and have a physical address.

The bank has a way of verifying the authenticity of your business registration, as such you are required to provide the registration number for a Limited Liability Company or business name for an enterprise before you can proceed with your application.

Collateral requirements

The fact that you can submit an online application doesn’t mean your application won’t be scrutinized.

You WILL have to pledge some assets to secure BOI loan or other forms of security subject to adequate coverage of the loan being provided to you.

The following are also accepted as  collateral to access the bank’s loan:

  • Legal mortgage on a landed property which must be duly registered with a Certificate of Occupancy
  • Debenture on assets of the company
  • Bank Guarantee
  • External Guarantors with Notarized statement of Networth for loans below N10 million.

What can be financed

You have a nice business idea or your business is already established and making significant progress in profit?

While you might be excited about the progress you’ve made so fat, you must also know that the bank is principally set up to finance industrial equipment used in manufacturing.

BOI loan isn’t meant to finance land and building

Mode of disbursement

The bank doesn’t directly fund your account number. It funds the account of your vendors and suppliers of the equipment that the loan application is for.

This is because the loan is designed to help grow the industry in Nigeria so as to create employment opportunities.

The amount that can be financed

BOI’s loan funding to the SME starts from N5 million. Anything below N5 million is provided on the matching fund platform.

The matching fund is operated in collaboration with various state governments and on BOI Bottom of the Pyramid (BOP) scheme which is operated through MicroFinance Banks.

Track record

BOI doesn’t provide a loan to a business that just started operation UNLESS you can convince the bank that you have the required experience with a board that is successful in their chosen field.

Your company must be able to provide evidence of at least three years of successful operation.

Required documents

To access BOI loan, you need to support your application with some documents which will be uploaded on the application portal.

These include:

  • Means of identity
  • CAC registration number
  • Evidence of tax remittance
  • Bank statements etc

Evidence of business registration read more

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How To Calculate Loan Interest (E.G 9% Interest Rate), We Just Made It Simple With These 2 Samples!

Most times, people apply for a loan and ask for the date of repayment without understudying the interest rate.

It is very very important to know how to calculate loan interest: 1) to know if it worth it, 2) if the loan would return more profit on investment to cater for the interest rate.

In this post, we’ll show to calculate how much you’d be paying “on top” of your loan whether it’s personal or to boost your business.

Concept of loan:

A loan is the amount of money taken by an individual or organisation to support a business or for personal use on the condition that it will be repaid on a specific date with or without interest.

Types:

  • Interest loan
  • Interest-free loan (non-interest)

Interest loan

You agree to pay a certain charge rate. This is common to financial institutions and money lenders.

They make a profit from the interest rate charged on the loan you take. This could come as either secured or unsecured loan. You are the debtor.

Interest-free loan

Interest-free loans are hard to come by. Governments that want to support SME usually make provision for interest-free to boost small businesses.

When it’s interest-free, it means you only pay the principal (that is the amount borrowed) without additional charges.

This kind of loan isn’t to make a profit-making venture for the lender, but to support the borrower.
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Loan application infomediang

19 Questions Asked By Survival Fund From Employer And Employee

The Federal Government’s Survival Fund is truly the first fairest funding and grants ever in the history of Nigeria.

After meeting all other requirements of the survival fund payroll, employers (CEO) and employees will have to answer some questions before their accounts are credited by the Central Bank.

We’ll share with you some of the questions disbursement committee of the survival fund will ask you either as an employer or an employee before your account is credited.

READ ALSO: #IGotSurvivalFund: Survival Fund Beneficiaries Shared Testimonies

Apart from is one of the KYC measures, it is to also ensure that the right people who really need the support are getting funded.

Objective of payroll support  

The grant is one of the plans of the Economic Sustainability Plan, which is providing financial supporting for Micro, Small and Medium Enterprises (MSME) and other businesses that have been hit by the COVID-19 pandemic.

Some of the programmes under the survival fund include Payroll Support, Guaranteed Offtake and MSME Grant

The most popular among the programmes right now is the payroll, which is a grant to support vulnerable micro and small enterprises in meeting their payroll obligations in order to safeguard jobs within the MSME space from the shock of the Covid-19

READ ALSO: =&2=&

Loan application infomediang

Eligibility Requirements For Online Loans in Nigeria

A colleague who urgently needed credit facility asked me, “How can I apply for a loan on online and what are the requirements?”

Under 60 seconds I sent him the list of apps where he could access an online loan in Nigeria without collateral.

In this post, I’ll share a piece of similar useful information with you as I take you on a drive to know the questions you’ll be asked before you could borrow money online in Nigeria.

The point is if you can’t share some information including your location, some loan apps won’t grant your application.

Some of the online platforms where you can get a loan are:

  • RenMoney
  • LoanDey
  • Rosabon Finance Quick Loan
  • FINT Loan
  • C24
  • FastCredit
  • LMoney
  • Zedvance
  • Snap loan for salary earners
  • Credit Direct
  • Alat Loan App
  • GroFin
  • One-Fi Loan
  • Lidya Loan
  • Lidya
  • Page Financials
  • CoolBucks
  • Smedan Loan
  • CreditVille

It is very important for the money lender to verify the identity of the borrower. It is the standard process. No one wants to give out a loan to an unknown person.

For you to know what it takes for your loan application to be granted, here are the eligibility requirements online loan firm will normally want you to fulfil;

  • Name
  • Date of Birth
  • Address
  • Employment status
  • Income
  • Bank details
  • Identity Verification
  • Phone number
  • Bank account statement
  • purpose of the loan
  • Guarantor

Name

You must provide your name as it appears on your national identity card or the way it appears on your bank account.

You can’t hide anywhere. If you tried to play smart, you WILL be caught. Be real. No lies.

Date of Birth

Underage persons are not eligible to take loan, that’s one of the reasons an online money lender would want to know your date of birth. This is necessary to be sure that you are not a teenager.

Address read more

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How to Apply And Get SEIFAC-CBN Loan For Farming Season

Another funding is here for farmers. If you haven’t heard about it, it’s called Smallholder Economic Interest Farmers Agricultural Cooperative or SEIFAC.

SEIFAC is one of the Anchor Borrowers Programme (ABP) rolled out by the Central Bank of Nigeria in a bid to support local farmers with funds so as to boost local production of what we consume.

In one of our publications, we highlighted the key requirements for you to enrol for the anchor’s programme.

How SEIFAC-CBN Loan works

To avoid any sorts of technicality,  SEIFAC is a cooperative of Smallholder Farmers by Smallholder Farmers for Smallholder.

Meaning you form a cooperative among yourself provided you a smallholder farmer in your community.

This is where it becomes very interesting…

Usually, farmers prepare for raining season ahead of a plantation. Some of the activities farmers do before the raining reason include:

  • Clearing of farmlands
  • Purchase of input and farming implements
  • Negotiation with labourer (for more large scale)
  • Irrigation preparation etc

That’s why SEIFAC launched data collation ahead of time for the 2021/2022 Wet Cropping Season.

Formation:

The smallholder farmers will farm in Agricultural Production Clusters (Agro-PCs) so that their challenges could adequately be tackled. That’s the significance of Agro-PC.

Targeted crops for 2020/2021 season:

The idea behind the programme is for farmers to leverage on their comparative cost advantage.

As such the targeted crops include:

  • Cassava,
  • Yam,
  • Rice Maize,
  • Sesame,
  • Groundnuts,
  • Soybean
  • Bambaranuts,
  • Sorghum

How To Become Member Of Seifac Project

If you are interested, membership is opened to the following people:

  • Agricultural Producer Cooperative Societies
  • Individual Smallholder Farmers
  • Primary Agricultural Cooperative Societies
  • Community Development Associations
  • Federal, State and Local Governments
  • Public Financing Institutions
  • Cooperative society

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Loan application process infomedia nigeeria

CBN Funding: What To Do If Your Loan Application Was Not Successful

We received an email a few hours ago from one of the subscribers expressing his concern over one of the government loans he applied for. He was unlucky.

He was more worried because some of his colleagues he assisted in the loan application were successful.

Their NMFB accounts have been credited. They are now one of the hundreds of CBN loan beneficiaries in Nigeria.

If you fall into the category of Hazeem (not real name) who applied but got no response from Nirsal Microfinance bank, don’t give up.

In this post, we’ll share with you other funding opportunities you can apply in, most especially if you manage agro-business and some of the questions you need to ask yourself why your loan was not successful.

6 questions to ask yourself

In reviewing why your application was not successful, you need to ask yourself these important questions:

1) Ask yourself: Is it a loan that requires business registration (CAC) and other documentation?

2) Did I show evidence of tax payment if it’s funding that requires you to show your TIN?

3) Did I enrol and have the Entrepreneurial Development Institute (EDI) certificate if it’s CBN-backed funding?

4) Did I get SMEDAN registration number? It’s FREE, you can check our guide on how to get SMEDAN registration number.

5) Is it geopolitical-based funding? If government funding is geopolitically based, then you have to wait for the turn of your zone.

6) Did I check my loan application status for the next step before the expiration of the application?

If you have adequately sort what the issues are, you can proceed to explore other loan opportunities available.

Here are some of them:

  1. CIFI
  2. SEIFAC
  3. AGSMEIS
  4. MSME
  5. ADDS
  6. NYIF Survival Fund
  7. NEXIT-CBN Loan

MSME

Are you operating micro, small and medium enterprises? If yes, then the MSME loan is there for you to apply.

You can apply for this opportunity either through the NMFB or through the Bank of Industry (BOI).

AGSMEIS

This is Agric-Business Small and Medium Enterprises Investment Scheme aimed at supporting local production of what we consume in Nigeria. These Loans are provided by the CBN to support your agribusiness

SEIFAC

SEIFAC is one of the Anchor Borrowers Programme (ABP) which means Smallholder Economic Interest Farmers Agricultural Cooperative.

You can also apply for SEIFAC project to gain access to government loans.

CIFI

You can also apply for the Creative Industry Financing Initiative loan. You can talk to NMFB, Access bank, GT bank, and other commercial banks that are participating in the loan disbursement.

NYIF Survival Fund

A few days ago, the Minister of Youth and Sports Sunday Dare said that close to N200,000,000 were disbursed to youth with brilliant business ideas.

If you applied for the Nigeria Youth Investment Fund (NYIF) but your application wasn’t successful, there is good news for you:

If you are not above 35 years, the minister made it known in one of his speeches that there are provisions for youth funds in the ministry 2021 budget.

This is significant. It means their lots to you can benefit from as we move fully into the year.

AADS

Another great initiative of the government you can apply for is the Accelerated Agriculture Development Scheme which is supported by Nigeria’s apex bank.

One of the core objectives of the AADS is to increase agricultural production towards food security, job creation and economic diversification

NEXIT-CBN Empowerment

If you are among the 500,000 exited beneficiaries, you stand a chance of benefiting from one of the options being looked into by the Ministry of Humanitarian Affairs and Social Development.

The ministry said in 2020 that it would partner CBN. It has done so and hopes are high among exited volunteers that they would receive funding from the Federal Government.

Takeaways:

  • If your loan application isn’t successful, consider other funding opportunities around.
  • There are more than five government loans you can benefit from.
  • Don’t let one rejection deter you from taking your business to the next level
  • read more

    Loan application infomediang

    Full List of CBN SME Loans You Can Apply For (To Boost Your Business)

    Do you know that there are several SMEs loans funded by the Central Bank of Nigeria (CBN) you can apply for to boost your business?

    We’ve got the full list here for you to pick the most suitable for your business and delve into how you can access them in our subsequent guideline.

    Hundreds of Nigerian entrepreneurs think that the apex bank only plays a regulatory role, that’s not true.

    Indeed, CBN is a major player in microfinancing and funding of Small and Medium Enterprises (SMEs).

    Some of the businesses the apex bank is funding include:

    • Agricultural business
    • Information technology
    • Healthcare research
    • Movie production
    • Music
    • Software engineering
    • Fashion etc

    The good news is…

    You can get as much as N500 million CBN loan to fund your business, depending on the size, profitability, feasibility, and well curated-business plan you set out.

    Whichever CBN loans you are planning to access to boost your business, you must know that the apex bank does not credit your account directly. Loans are disbursed through banks and other financial institutions licensed by the CBN.

    Little was heard about CBN loans until the outbreak of the deadly coronavirus (COVID-19). It became imperative for the apex bank to rescue businesses which had financial challenges as a result of the impact of the pandemic.

    Here is the full list of CBN SME loans you can apply for:

    1. ABP: Anchor Borrowers Programme (ABP)
    2. AGSMEIS: Agri-Business/Small and Medium Enterprise Investment Scheme
    3. MSMEDF: Micro, Small and Medium Enterprises Development Fund
    4. CIFI: Creative Industry Financing Initiative
    5. AADS: Accelerated Agricultural Development Scheme
    6. HSRDIG: Healthcare Sector Research And Development Intervention Scheme

    So, who and what kind of business can apply for any of these loans? Let’s take a look at how significant these loans are to small businesses in Nigeria.

    Anchor Borrowers Programme Loan

    Do you know that the ABP loan has been around for close to five years? Yes, the ABP loan was launched by President Muhammadu Buhari on November 17, 2015.

    It’s designed to create a linkage between anchor companies involved in the processing and smallholder farmers (SHFs) of the required key agricultural commodities.

    The mandate of the loan are:

    1) Provision of farm inputs in kind and cash (for farm labour) to smallholder farmers to boost production of these commodities

    2) To stabilize inputs supply to agro-processors

    3) To address Nigeria’s negative balance of payments on food.

    How does it work?

    At harvest, the SHF supplies his/her produce to the Agro-processor (Anchor) who pays the cash equivalent to the farmer’s account.

    Basically, it’s meant to reduce Nigeria’s reliance on food importation which gulped billions of naira every month.

    Agri-Business/Small and Medium Enterprise Investment Scheme

    The AGSMEIS is the most popular of all the CBN SME loans targeting the agricultural sector in Nigeria. It’s popular because of the sensitisation by the CBN and its partners.

    It’s basically designed as a vehicle for sustainable economic development and generate employment among the teeming Nigerian youths.

    Provided your business is registered by the Corporate Affairs Commission (CAC), which is a prerequisite to access SME loan, and you’ve undergone training by entrepreneurship training centres recognised by the CBN and the Bank of Industry (BOI).

    Micro, Small and Medium Enterprises Development Fund

    One of the objectives of the MSMEDF loan is to enhance access by business owners to financial services, says the CBN when it was launched on August 15, 2013.

    The reason for this loan was the fact that the apex bank recognised the enormous contribution of the Micro, Small and Medium Enterprises (MSME) sub-sector to Nigeria’s economy.

    We’ll tell you more on what you need to do to access MSMEDF loan in our subsequent guide.

    Creative Industry Financing Initiative read more

    Loan application process infomedia nigeeria

    Banks Where You Can Apply For Creative Industry Financing Initiative Loan

    You’ve heard about CBN’s CIFI loan and wondering how to access it? We’ve compiled here the Nigerians banks where you can easily submit your application to access the loan.

    Purpose of the loan

    It is an on-lending scheme designed by Nigeria’s apex bank in collaboration with the Bankers’ Committee. It’s designed to boost job creation in Nigeria. It’s among the six loans funded by the CBN.

    They want to achieve this by providing loans at cheaper rates to the Fashion, Information Technology, Movie and Music sector.

    A few months ago, the Central Bank of Nigeria (CBN) released an application for creative minds, students and individuals on how to access funds for their creativity.

    If you’re creative and have the requirements outlined by the apex bank, we’ll reveal to you some of the Nigerians banks where you can access the loan.

    How does Creative Industry Financing Initiative Loan work?

    According to CBN those who can benefit from the loan include:

    • Fashion designers
    • Information Technology expert
    • Movie Producers
    • Movie Distributors
    • Musicians
    • Music producers
    • Software Engineering Student Loan

    But before you can access CIFI loan, you must first prepare a business plan, a must for anyone who wants to access government loan in Nigeria and part of the world.

    The business plan must contain how much you want for your business.

    So you’ve been wondering how much you could get, right? Here is what’s in for each of the categories:

    • Software Engineering Student can access up to N3 million
    • Movie Production owners could get up to N30 million
    • N500 million is available for Movie Distribution business

    Why you should apply for this loan

    • It is a low cost-single digit funding for your business
    • It has a flexible structure and repayment plans
    • It’s designed to enable you to achieve your long term business goals considering the tenor with a maximum tenor is 10 years.

    Can wait to apply? You need to know the conditions for the funding.

    Requirements

    The eligibility requirements to access the loan are

    • Business Plan (very important)
    • 3 Years Financial Projections (in terms of profit)
    • Must have a clean/satisfactory credit history.
    • 3 years audited accounts for existing companies (new business is exempted from this)
    • Economic benefits to Nigeria’s economy
    • Statement of Affairs for start-ups and companies with less than 3 years of existence
    • Copies of duly executed offer documents between the bank and loan applicants
    • Certificate of Incorporation (CAC)
    • Brief on Directors
    • Tax Identification Number (TIN)
    • Bank Verification Number (BVN)

    Others include:

    • Previous /Current Management Position
    • Shareholding
    • At least 2 Credit Reports for the company and each Director
    • Proposed schedule of fund disbursement
    • Proposed schedule of fund repayment (how do you plan to repay?)
    • CBN Intervention(s) which the project is Currently Benefiting from
    • Outstanding Amount(s) in respect of 12 above
    • Minimum Equity Contribution-30% of total project cost
    • Provide evidence of any of the following: Legal mortgage, All asset debenture or Personal Guarantee

    NOTE:

    The requirements vary. For instance, to access the Student Software Development Loan, some of the eligibility requirements you must fulfil include:

    • University Degree,
    • NYSC Certificate,
    • Credible Guarantor,
    • Personal Guarantee
    • Must gain admission into a training organisation that has job placement contracts.
    • No bad credit history with CRMS or any commercial bank in Nigeria bank
    • Preference for areas with low IT penetration

    It’s time to apply…

    How to submit your application read more

    How To File Company Annual Returns With CAC in Nigeria

    150,000 Free Business Name Registration Slots Still Available – FG

    The Federal Government says at least 150,000 slots are still available in the ongoing CAC-FG free business name registration.

    In 2020, a committee led by Vice President Yemi Osinbajo announced free 250,000 slots for small business owners to register for their business name. It is part of government effort at boosting small businesses.

    Several months after the exercise began, the government said 100,000 businesses have seized the opportunity.

    Why the government announced free business name registration:

    Last year, the Buhari-led government rolled out several welfare packages as part of the post-COVID-19 strategic measures to mitigate the effect of the pandemic on businesses and individuals.

    One of such is Survival Fund which includes ( Payroll, Formalization, guaranteed Offtake, and SME grant).

    One of the requirements to accessing some of the grants and soft loans is CAC business registration

    As such free business name was announced to allow those who are financially incapacitated to take the advantage.

    Requirements:

  • Two (2) Passport-sized photographs
  • Three (3) Proposed Names
  • Phone Number
  • Email address
  • Valid Means of Identification: National ID Card (NIN), Driver’s Licence, International Passport.
  • read more

    Loan application process infomedia nigeeria

    10 Ways To Know A Loan Is A Scam

    It’s a hard time, most especially for the average people around the World. The trying moment has forced millions of people around the world to seek soft loans to augment the situation.

    Unfortunately, this is also the time you could lose the little you have while trying to get a credit facility.l

    At a time like this, online scammers popularly called Yahoo Boys in Nigeria could dubiously lure you into losing your money.

    Here are the 10 ways to know that a loan is a scam and how you could be scammed while you are trying to applying and be funded from the government, financial institutions, or money lenders.

    1. Loan Via SMS
    2. Loans via Email:
    3. Loan Via Telegram
    4. Corporate Impersonation
    5. Sweet talk
    6. Asked to share your password
    7. Impersonating Loan portal
    8. Nuisance phone calls
    9. Too good to be true
    10. Personality impersonation

    Loan Via SMS

    When you get an SMS saying:
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    Loan application infomediang

    Collateral-Free Mobile Loan Apps in Nigeria And Their Interest Rate

    If you need an urgent online loan, your best option should be collateral-free mobile moneylenders in Nigeria.

     Online Loan in Nigeria

    The beauty of this post is that the writer had the first-hand experience of some of the loan apps while he interacted with people on the forum who had used such online lending platforms before.

    As such, we’ll also tell you the interest rate of each of the online loan whether you applying to implement your farming business ideas or any other entrepreneurial goals you set yo achieve.

    There are some of them we can boldly recommend for your business, while there some of them that could kill your business through the exorbitant interest rate.

    What we’ve also noticed is that some of them are yet to come up with apps while some of them operate both on the app and on the browser, whatever the case is we’ve got you covered as you make the move to take an online loan to finance your business.

    Before now, financial institutions made it extremely difficult to take a loan because of the tiring paper works and collateral.

    But due to the Fintech uprising in Nigeria, online lending startups are making it easier for businesses and private individuals to obtain quick loans to boost their business

    So…

    So, let’s get started…
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    SMEs Nigeria infomediaNG

    Licensed Microfinance Banks In Nigeria Where You Can Get Loan (Certified By CBN)

    I want a loan of N50,000 to support my catering business, there are only two microfinance banks in my community, and I don’t know how to approach them for credit facility support?, says Adeola (not real name).

    Just like Adeola, some business owners don’t really know that microfinance bank in their community offer credit facility provided you can abide by their loan terms and conditions.

    We’ll take you on a drive to highlight the CBN-certified Microfinance banks in Nigeria and list the key eligibility requirements to access the credit facility they offer.

    Microfinance Banks in Nigeria Licensed By CBN

    The Central Bank of Nigeria is Nigeria’s apex financial institution that plays regulatory roles on other commercial banks and other institutions that offer monetary services.

    Certification by the CBN are not alone, the government takes a step further to ensure that the banks are insured by another government agency known as Nigeria Deposit Insurance Corporation (NDIC).

    In our subsequent publication, we’ll delve into the process of claiming your deposits or money from liquidated banks.

    In the meantime, here is the list of legally recognised microfinance banks you can get a loan:

  • ABC Microfinance Bank Limited
  • Abia State University Microfinance Bank Limited
  • Ahmadu Bello University Microfinance Bank Limited
  • Aiyepe Microfinance Bank Limited
  • Aku Diewa Microfinance Bank Limited
  • Akwengwu Microfinance Bank Limited
  • Alache Microfinance Bank Limited
  • Gombe Microfinance Bank Limited
  • Good Neighbors Microfinance Bank Limited
  • Grand Fortress Microfinance Bank Limited
  • read more

    SMEs Nigeria infomediaNG

    How To Generate CAC E-Certificate Online For Your Business, See How Much It Costs

    In 2020, the Corporate Affairs Commission (CAC) promised to start delivering electronic certificate (E-Certificate).

    It said it’s part of the measures to minimise physical contact between workers and its customers. All over the world, everyone is keeping social distancing so as to reduce the spread of COVID-19 pandemic.

    Registrar-General of the Commission, Alhaji Abubakar Garba was quoted as saying:

    “Physical contact between workers and customers of the commission will, thus, be duly minimised to curb the spread of the coronavirus.”

    What this means for SME who wants to apply for loan

    With the CAC e-electronic certificate, small business owners can now complete their company registration online and print the certificate from the dashboard.

    You need CAC certificate to apply for any kinds of the loan being rolled out by the Central Bank of Nigeria (CAC).

    We already have two publications on how to apply for business registration and the free registration which was rolled out some time ago by the Federal Government.

    In this post, we’ll show the step-by-step guide on how to print your CAC certificate online without visiting the commission’s office.

    Requirements:

  • Business Name;
  • Proposed company names,
  • Scanned copy of your valid ID Card,
  • Address,
  • Emil
  • Phone number,
  • Three Nature of Business,
  • 2 scanned copy of your passport
  • Full name
  • Date of birth
  • read more

    SMEs Nigeria infomediaNG

    4 Types of Loans for Women in Nigeria: Check Eligibility Requirements And Application Process

    Do you know that there are loans that are specifically designed for women in Nigeria for them to build, expand, and grow their businesses?

    In this post, we’ll share with you funding opportunities for female business owners in Nigeria. If you want to stabilise the home, empower a woman, boost her business, support her financially in her entrepreneurial skills or business.

    A former Secretary-General of the United Nations Late Kofi Annan recognised the importance of women in development when he said:
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    Loan application process infomedia nigeeria

    7 Things To Consider Before Taking a Loan, The Questions To Ask Yourself

    Most times business owners approach financial institutions and other money lending firms to borrow to implement business ideas or for personal use.

    You could take a loan to buy cars, sponsor your kids’ education, buy houses, and expand business

    Whatever your reasons are, what are the things to consider before taking a loan? Do you just walk straight into a banking hall to take a loan?

    There are a number of questions you need to ask yourself. One of them is: Why am I taking this loan (purpose), how much do I need?

    Let’s get right in…

    Money is necessary to explore more business opportunities and for personal needs to be realised.

    When such needs arise here are the cardinal factors you need to consider before applying and taking a loan whether as an individual or a corporate body:

    1. The purpose of the loan
    2. Loan amount
    3. Ability to repay within time frame
    4. Ability to pay principal and interest
    5. Financial institution to approach
    6. Collateral (guarantee) for the loan
    7. Terms and Conditions of the loan

    Purpose for the loan

    The first question you ask yourself is: Why am taking a loan. Do I really to take a loan to get things to do?

    Are there alternatives like approaching family members, friends, a cooperative society with little or no interest?

    For instance, the purposes for personal loans can include covering an emergency expense and financing a large purchase.

    In one of our publications, personal loans are categorised as one of the unsecured loans which come with interest.

    If your credit score is good, you shouldn’t have a problem accessing a personal loan.

    The good part is: the approval process is generally pretty quick with no worry about collateral.

    Bottom line: Knowing the purpose of your loan would help you in using it for the purpose it is meant.

    Loan amount

    If N30,000 would be enough to take care of the situation, there is no need to take N50,000. There is no point in increasing your debt profile.

    Most times, the good your credit score, the higher the amount you can take, but don’t be lured by the money lender’s gimmicks.

    In some countries, you can take up to $50, 000 or more loans provided your have a score of 760 or higher.

    Ability to repay within the time frame

    Would you be able to pay within the time frame? What other sources of funds do you have to settle your loan within the time frame?

    In making sure to don’t default, it’s advisable to choose the most feasible time so that your credit score isn’t affected.

    For instance, if you’re taking a payday loan, don’t set a two-week repayment time for yourself if your salary would not come in by the end of the month.

    Some organisations pay the fourth day of another month, put this into consideration. Don’t put yourself under pressure that is avoidable.

    Ability to pay principal and Interest

    Your ability to repay the principal and interest over the repayment period is very important as taking the loan.

    The ability to pay is called “capacity,” in banking. The lending institutions have a lot of factors they use to determine if a borrower would be able to pay the principal and interest.

    The principle is the actual amount you applied for while the interest is simply the “gain” the lender is making from granting the loan.

    One of the things the lender uses is your income and cash flow.

    Bank To Approach For Loan

    If it’s an online loan, which is growing astronomically in Nigeria, FairMoney is one of the best of them all.

    If you have a good credit score, you could get a discount on repayment and with a fair interest rate compared with its competitors.

    If you’re taking a long from banks, the lending process involves a series of activities that lead to the approval or rejection.

    Most times, you have to have an active account with the bank before your could access their loan.

    In Nigeria, some banks are friendlier and considerate in granting a loan than the other. Which bank do I approach for a loan? More coming up on this very soon.

    Loan Collateral (guarantee) read more

    Loan application process infomedia nigeeria

    2 Major Types of Loans in Nigeria

    You’ve heard about the soft and collateral-free loan, SME, housing, car, and all kinds of funding for personal and corporate use?

    Usually, all kinds of funding fall into two major types of loans. Whether the funding is from the government, non-governmental organisation, or from a financial institution, they could be categorised as:

    1. Secured loan
    2. Unsecured loan

    In this post, we’ll take a look into what makes a secured and unsecured loan, most especially when you’re trying to get loans from Nigerian banks.

    Secured loan

    This is a loan whereby the borrower is compelled to produce collateral like property, movable assets.

    Usually, the collateral which is also known as a guarantee are always worth more than the amount of the loan.

    Significance of collateral

    The money lender is in a business, he makes profits from the interest from a borrower as such he puts in place every mechanism to ensure that he doesn’t run into loss.

    This way, the collateral can be claimed by the lender in case the borrower fails to pay back or failed to fulfil his own side of the agreement.

    That’s why there will be always terms and conditions before you take a secured loan. For instance, a property worth N5,000, 000 could be collateral for someone taking a N2, 000, 000 loan.

    It is called “term loan” which is granted by financial institutions for a specific amount and repayment terms, as well as a fixed or fluctuating interest rate.

    If you default, the lender can put a lien on the collateral (a lien is a legal term for the lender’s claim to the borrower’s collateral.)

    The lender can keep the lien active until the loan is fully paid. That;s when the collateral ownership reverts back to the borrower.

    The moneylender has the legal right to put up the collateral for sale if you default. He does this to cover any losses incurred on the loan.

    That’s how it works!

    Types of Secured Loans

    Most times, secured loans in Nigeria covers business funding running into millions or billions of naira.

    Kinds of secured loans vary from country to country, but generally here are the types of loans that require collateral:

    • Mortgage Loan
    • Vehicle loans
    • Secured credit cards
    • Secured lines of credit
    • Bad credit loans
    • Car loan loans
    • Pawnshop loans
    • Life insurance loans

    We’ll delve deeply into these in our subsequent publications. Let’s a take a look at the most popular ones which is…Mortgage Loan.

    Also known as housing loan, which is currently being undertaken by the federal government where 300, 000 housing units are built for the benefits of Nigerians at affordable price.

    A mortgage loan is usually granted by financial institutions for the purchase of property usually with specified interest rate and the repayment period.

    It’s one of the easiest loans banks are interested in because the property itself is the collateral.

    If you backslide on the terms and mode of repayment, it could lead to foreclosure (that is seizing of the property). In simple terms, the ownership could be taken by the lender.

    Unsecured Loan

    An Unsecured Loan is a collateral-free loan in which the borrower does not need to pledge any asset to access funding.

    But the lenders are also smart because it riskier than the secured loan, so the interest rates are usually higher.

    Types of unsecured loans in Nigeria

    • Payday loan
    • Personal loan
    • School fees
    • NEXIT-CBN Loan
    • Survival fund
    • NYIF Loan
    • Business startups
    • GEEP Loan
    • Develop business
    • Rent
    • MarketMoni
    • Repair car
    • Credit Card Loan
    • Buy car
    • TraderMoni
    • Medical bill

    Credit Card Loan:

    This isn’t popular in Nigeria, but it is very important to note that it is one of the unsecured loans provided by banks in yje United Kingdom, United States of America (USA) and some European countries.

    Credit card loan is issued by financial institutions to allows cardholder to spend an amount above his account balance, but up to an agreed limit.

    The bank usually carry out regular checks and reconciliations at intervals to balance the account and claim interests, charges and principal according to the terms and conditions.

    Personal Loan

    As the name sounds, it is a loan granted to settle personals stuffs like electricity bill, data etc. It’s generally for personal use.

    You could get this loan from your bank if you have a good credit record. Personal loan is Nigeria is now popular among online loan firms. In some countries, it’s referred to as consumer loan.

    Key takeaways: read more

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