Personal Loans in Nigeria – How to Get One


Personal loans are a form of credit used by Nigerians to finance personal expenses. These personal expenses can include weddings, education, healthcare, emergencies, purchase of cars, building of houses and the renovation of homes.

Personal loans are offered to people by banks, lending firms, microfinance firms, credit firms, mortgage homes and other financial institutions etc.

This blog post will explain the types of personal loans in Nigeria, how to get personal loans in Nigeria and the advantages and disadvantages of personal loans in Nigeria.

personal loans in Nigeria

Types of Personal Loans in Nigeria

The following are the types of personal loans in Nigeria:

Unsecured personal loans

This is a type of personal loan which does not involve the borrower to have a collateral security. The rates of unsecured personal loans are usually high because of the higher perceived risk level.

Secured personal loans

The secured personal loans are personal loans that require collateral security. The collateral may come in the form of a car, house or other assets. Secured personal loans are usually offered to borrowers with poor credit score.

Car Loans

Car loans are used for the financing of the purchase of cars. Car loans are very popular in Nigeria as most Nigerians prefer buying their cars on credit.

Firms like Cars45 offer car loans to Nigerians. Banks like Access Bank, First Bank and Ecobank etc. also offer car loans to Nigerians.

Salary Advance Loans

The salary advance loans are usually offered to salary earners. The monthly salary of the employee is used as a security against the loan. Salary advance loans can be offered by banks and lenders. They can also be offered by employers to their employees.

Payday loans

Payday loans are a type of personal loans that provides quick cash to salary earners. This type of personal loan is usually targeted to people with salaried jobs. Payday loans have higher rates and fees.

Education Loan

Education loans are usually offered to borrowers to pay their school fees. This type of loan can be used to fund primary, secondary and tertiary education.

Parents can also use this type of loans to pay for the children’s school fees, text books, school bags and other things needed for their children’s education.

Wedding Loans

Wedding loans is a type of personal loan in Nigeria. Wedding loans are usually used for the financing of marriage or wedding ceremonies in Nigeria. Nigerians like throwing big parties for their weddings; this makes some Nigerians to seek for wedding loans.

Debt Consolidation Loans

Debt consolidation loans are designed to help borrowers consolidate multiple debts into a single loan with better financing conditions. This type of personal loan can be advantageous with borrowers having multiple loans with unfavourable rates.

How to Apply for Personal Loans in Nigeria

The following are the steps to take to apply for a personal loan in Nigeria:

  • The first step in applying for a personal loan in Nigeria is for the borrower to decide the type of personal loan he or she wants. Do you want a car loan? Do you a salary advance loan? Do you want a payday loan? Answers to these questions will guide you on the most appropriate type of personal loan to apply for.
  • 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 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 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 loan application is successful, your bank account will be credited.

Where can you get personal loans in Nigeria?

The following are the places where you can get personal loans in Nigeria:


You can get personal 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.

Loan Apps

You can get personal 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

Lending firms like Opticom Finance, Credit Direct, Fairmoney, Carbon, Renmoney and Opay ae some of the lending firms that offer personal loans to Nigerians.

Thrift Societies

You can also get a personal loan from thrift societies and credit unions.

Advantages and Disadvantages of Personal Loans in Nigeria

Personal loans have their advantages and disadvantages. These are discussed as follows.


  • Personal loans are flexible. They can be used for almost anything legally permissible. Personal loans can be used to finance personal expenses, purchase of cars, home renovations, wedding and weddings etc.
  • Personal loans are approved quickly. You can get a personal loan almost instantly.
  • Some personal loans do not need a collateral security. This makes people with no assets to apply for personal loans without any worries.
  • Personal loans have fixed repayments. This makes borrowers to effectively budget for their other expenses.


  • Most personal loans come with high lending rates. This can make repayments difficult for borrowers.
  • Personal loans come with a risk of default. This can lead to the seizure of the assets of the borrowers. It can also lead to litigations.
  • Personal loans are often short term in nature. This can impact borrowers’ ability to repay on time.
  • Some firms offering personal loans in Nigeria are sharks. They can use unconventional means to make borrowers pay back the loans.


Personal loans can be of benefit to borrowers if used well. Do you need personal loans in Nigeria? If yes, why not contact a bank or lending firm in Nigeria. We can also refer you to a bank or lending firm in Nigeria.

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