Why Loan NO Collateral in Nigeria and high interest rate

Collins Okoye

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Why Loan NO Collateral in Nigeria and high interest rate
Posted on: June 07, 2017, 02:10:29 PM
How true is getting a loan in Nigeria with no collateral, Yes its possible to get a loan in Nigeria without collateral but with high-interest rate but no bank or organization can give a loan without looking at you financial power through your bank statement, they must be sure that you are capable of repaying the loan.

Yes, you might not give out your landed property, cars, houses and other valuables as a collateral but how about paying high-interest percentage rate upto 40% -50% of the total money you are borrowing?

Am not talking about getting a loan from the organization, association you belong to because each and every organization or association has their own system of lending money to their members and none members but am talking about getting a loan from banks and those who specialized in giving loans to the public.

Many companies and individuals are looking for a loan to boost their businesses to their standard or to handle one project or the other but recently it took me lots of time to research and find out how one can get loan in Nigeria irrespective of what the loan is meant for, whether to buy or rent a house, for business or to buy a Car etc.

I was moved to write about this Loan without Collateral in Nigeria because while researching on how to get a loan in Nigeria and the interest rate involved I came across one Nigerian website who specialized in giving short and long-term loans but guess what?

I was attracted to check them out when i saw their advert that says Get a loan without collateral but to my surprise their interest rate is upto 41% plus.

With the high-interest rate on loans how wll Nigeria succeed, how will the price for goods and service be reduced, i was even disappointed that banks provide loans with 30% interest rate using Gtbank Salary Advance Loan as an example.

Should I avoid getting a loan?
After my research sometimes i ask this question, why would i pay almost double of what i get all in the name of getting loan but i understand that some businesses and companies can not stand without a loan if not i will say that is not wise for anyone to go for loan especially those loans with high percentage interest rate.

The Good news about loan in Nigeria

Recently the Nigerian Senate President ask banks to reduce the interest rate charge

Mr Saraki noted that the high interest rates being charged by commercial banks on loans to customers could have adverse effect on the country’s economy, particularly for entrepreneurs who need borrowed funds to stay afloat and contribute to the Gross Domestic Product (GDP).

The Senate President said during the talks, the Senate would take a decision on the interest rates being charged by commercial banks as he said the prevailing rates were too high and discouraging to genuine industrialists and entrepreneurs who need to accommodate the cost of money alongside other costs to fix prices of goods and services.


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