Many Nigerians have been rescued by personal loans granted by Nigerian banks. Meanwhile, how easy is it for banks to grant loans to Nigerians who need loans? As is the norm, there are requirements you must fulfil before you can be considered worthy of a loan. Check out how to apply for Mpower study loan.
It is natural that people at some point in life find themselves in tight financial situations that require them to get a loan to sort out whatever financial needs they have. Personal loans, contrary to business loans, are given by banks for personal use. Personal loan can be used to pay medical bills, rent or renovation of apartment.
Among all the types of loan, personal loan is the easiest to access, because the bank would not demand for documents or details associated with business. Sometimes however, personal loan seekers have been refused loans for some reasons which are unknown to many Nigerians.
In this article, we will list out the things banks consider before granting loans in Nigeria. Without wasting any time, let us look at the things that banks consider before giving loans:
1. Source of Income/Employment Status
Nigerian banks always lookout out for your source of income of a loan seeker before considering granting a loan. They do this to be sure that you have a steady stream of income that will enable you to pay back the loan as at when due. Additionally, your employment status will play a huge part. Being gainfully employed gives you a great chance at being given a loan.
2. Credit History
Credit history is another thing that banks consider before granting loans. This refers to how you handled your previous loans. That is, if you have taken a loan before. A good history of repayment will work greatly in your favour.
3. Work Experience
To be considered worthy of a loan, banks will look at your employment history. This basically means that the number of years you have worked with the organization will play a huge role.
4. Relationship with the Bank
Anyone one who is a position to lend someone money will always consider those with whom he has a good relationship with, first. This is not bias, but how things work naturally. The banks behave in the same way. They always give preference to those who have been banking consistently with them for long, before non-consistent and non-bankers.
5. Repayment Duration
When applying for a loan, avoid planning for the option of exhausting the loan duration before paying back. As much as banks give loan with up to 60 months duration, you don’t have to wait till the months are over before you repay the loan. If you pay early, you stand a chance of being giving another loan.
Banks don’t give loan to underage persons. It is a legal procedure. As such, you can only be considered for a loan if you are 18 years and above.
If you want to take a loan, you should be able to now know if you are eligible.