In Nigeria, car loans are becoming popular because it affords a lot of Nigerians the ability to own a car without stress. The spike of prices of goods in Nigeria has made a lot of individuals and business to seek out car loans in order to own a car. This article will highlight what a car loan is, how to get a car loan in Nigeria and where to get a car loan in Nigeria.
What is a car loan?
A car loan also called an auto loan is a type of loan used for the acquisition of a car. The tenor of a typical car loan spans from 1 year to 5 years in Nigeria. The borrower is expected to make monthly repayments of the loan throughout the duration of the loan. To get a car loan, the lender will run a credit check on the borrower.
How to Apply for a Car Loan in Nigeria
The following are the steps to take to apply for a car loan in Nigeria:
- The first step in applying for a car loan in Nigeria is for the borrower to pick the car vendor where he wants to purchase the car. The borrower should also decide on the type of car he wants. Some lenders have their preferred vendors.
- Ensure you have a driver’s license. Some banks and lenders will not offer you a car loan if you do not have a driver’s license.
- Ask for a proforma invoice from your preferred car vendor.
- Contact your preferred bank or lending firm. You can contact any bank or lending firm or apply through a loan app.
- Ensure you have a Bank verification Number (BVN).
- Fill the car loan application form. This can be filled in the offices of the bank. You may also be able to fill the loan application form online. The bank or lending firm will conduct a credit search on you to know your suitability for the car loan.
- The bank or lending firm may ask for your employment records, personal details and other details that will assist them to know the type of loan to offer you, the amount and the lending rate.
- If the car loan application is successful, your bank or lender will pay the car vendor.
Where to Get a Car Loan in Nigeria
The following are the places you can get a car loan:
Some car vendors offer car loans to Nigerians. These car vendors have partnership agreements with banks and lenders on offering car loans to buyers. Some of the car vendors that offer car loans are Autochek Africa, Betacar and Cars45 etc.
You can get car loans from commercial banks and other banks in Nigeria. The banks include First Bank, Access Bank, Union Bank, Zenith Bank, Fidelity Bank, Ecobank, Stanbic IBTC, Standard Chartered Bank, Citibank, Guaranty Trust Bank, Titan Trust Bank, Providus Bank, Globus Bank, Sterling Bank and Keystone Bank etc.
You can get car loans by applying through some loan apps in Nigeria. These loan apps include Aella Credit, Sharp Sharp loan, PalmCredit and Kiakia loan etc.
Lending firms like Opticom Finance, Credit Direct, Fairmoney, Carbon, Renmoney and Opay ae some of the lending firms that offer car loans to Nigerians.
You can also get a car loan from thrift societies and credit unions.
Benefits of Car Loans in Nigeria
The following are the benefits of car loans in Nigeria:
- Car loans make it easy for Nigerians to purchase cars of their choice without having to pay the full cost of the cars upfront.
- Car loans are usually affordable as borrowers are allowed to pay the principal and the interest over a fairly long time.
- Most car loans in Nigeria have flexible repayment terms.
- A borrower can use a car loan to build his credit profile and credit score.
With a car loan, you can easily purchase a car without stress. You do not need to have the full cost of the car before you become a car owner. Isn’t this great? In spite of the benefits of a car loan, you need to consider the terms of the car loan you want to take so that you are sure that you are opting for the best car loan option.
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