Loan companies are financial firms that specialize in lending money to the public for purposes other than their own. This can be done by issuing loans, advances, or in other ways.
The essence of these loan companies cannot be overemphasized especially when you want to start a business, expand a business, or purchase inventories. In this article, we will be discussing the top 5 loan companies in Nigeria, their requirements, and the peculiarities of each one of them. Before we talk about the top 5 loan companies in Nigeria, let’s expatiate on what a loan is.
What is a loan?
A loan is a type of contract in which the lender promises to temporarily lend the borrower money or other property with the understanding that the borrower would repay it together with interest and on the agreed-upon terms and circumstances.
Depending on the borrower’s choices, lending businesses provide a variety of loans. As an example, consider a demand loan, a term loan, a secured loan, an unsecured loan, an industrial loan, a commercial loan, an agricultural loan, etc.
Sneak peek at the top 5 loan companies in Nigeria
- Lapo microfinance bank
- Bank of Agriculture (BOA)
- Stanbic IBTC Holdings
- Wema Bank’s ALAT
Top 5 loan companies in Nigeria
Renmoney is a loan business that also serves as a microfinance institution. The organization takes pride in being Nigeria’s easiest online lender for both people and corporations. It offers simple loans to satisfy necessities like expanding a small company, remodeling a house, purchasing a new automobile, paying rent, tuition, and other payments, etc.
It is a Fintech lending company overseen by the CBN and protected by the NDIC, and is currently working on obtaining a microfinance banking license in Lagos, Nigeria. Through their website, they provide loans to both individuals and independent enterprises or corporations.
With Renmoney, you can receive up to 6 million Naira in 24 months. They are dedicated to helping millions of small business owners and underbanked people in Africa make financial inclusion matter.
Renmoney was established in 2012 and runs in Nigeria under a microfinance banking license. They integrate conventional and non-conventional data sources using statistically driven models and technology to provide practical credit, savings, deposit, and banking solutions. Its minimum loan amount is N100,000, and its interest rate is about 2.8% per month.
How to qualify for Renmoney Loan?
- Be between the ages of 22 and 59 while applying for the loan and paying it back.
- Be employed or operate a business (or have a reliable and consistent source of income)
- Live in a city where Renmoney operates or works there.
- Have a positive history with the credit bureau
- Have a savings or current account with any Nigerian commercial bank
Lapo Microfinance Bank is a microfinance organization that helps people who can’t acquire loans from other financial institutions by offering SMEs and entrepreneurs unstable loans. LAPO Microfinance Bank is an offshoot of the non-governmental organization that focuses on eradicating poverty, the Lift Above Poverty (LAPO) Organization.
It was started in the late 1980s in reaction to the effects of the Structural Adjustment Program (SAP)’s implementation. The Organization was established in April 2007 and granted authorization by the Central Bank of Nigeria (CBN) to function as a regulated State Microfinance Bank in 2010. In 2012, it was designated a National Microfinance Bank.
In 34 of Nigeria’s 36 states, including the Federal Capital Territory of Abuja, LAPO Microfinance Bank assists micro, small, and medium-sized businesses and members of low-income households with a variety of financial products and solutions. It has a vast network of more than 500 branches.
They have offices in Lagos State and Benin City. With Lapo Microfinance Bank, you have access to a credit facility with a maximum limit of 10,000,000 and a maximum 12-month extension. Enrolling with Npower (i.e. Nigerian Federal Government program to empower youth) will also enable you to access loans.
How to qualify for Lapo Microfinance Bank?
- Request for a loan letter
- Properly filled out the application form
- Two guarantors
- A legitimate form of identification, such as a passport, driver’s license, voter card, or national ID
- Presently billed utility
- Four current passport-sized photos.
Bank of Agriculture (BOA) Limited was founded as the Nigerian Agricultural Bank (NAB) in 1972 and began operating in 1973. The sole aim of this loan company is to perform the duties of a Development Finance Institution (DFI) for the Agriculture and Rural Development sector.
This Nigerian bank is backed by the government and offers finance to farmers and agricultural enterprises in the form of loans, credits, and other types of capital. They provide a variety of goods and services, including an agro-processing plant and an export finance institution.
The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance Incorporated (MOFI), in the proportion of 60%: 40%, respectively, hold 100% of the Bank.
With an interest rate of 7–21%, they may offer loans up to 5 million naira. The highest loan volume is N50,000,000.00, with loan amounts starting at N250,000. Individuals are only allowed to spend N5,000,000.00, greater than N5,000,000 to business organizations. Loan terms cannot exceed five years.
How to qualify for Bank of Agriculture (BOA) loans?
- Existing surplus agricultural land
- An initial 3000 naira payment
- The most recent copy of your utility bills
- Completed application documents
- 3 passport photographs taken recently.
- A signed correspondence from the bank.
On February 2, 1989, Investment Banking & Trust Company Plc (IBTC) was established as an investment bank. The Central Bank of Nigeria unveiled its commercial banks’ re-capitalization plan in 2005.
Nigerian financial services holding firm Stanbic IBTC Holdings, or simply Stanbic IBTC, has subsidiaries in the banking, pension management, investment advising, asset management, investor services, trustees, and life insurance industries.
Based on assets and profits, Standard Bank, which has operations in 20 African and 13 non-African nations, is the continent’s biggest banking organization. You are good to go whether you want to apply for a loan to start your own independent business, lease a home, buy a car, remodel your home, pay your bills, or pay for medical expenditures.
The company’s corporate office is located at I.B.T.C. Place on Walter Carrington Crescent in Victoria Island, Lagos. Their main concern is the banking journey, which includes not only their own journey as a supplier of services but also the journeys of their clients and staff.
They offer goods, services, and platforms that continue to empower and support their consumers as the economic environment in Nigeria evolves.
How to qualify for Stanbic IBTC Holdings loans?
- An operational bank account of at least six months old.
- Be at least 18 years old and no older than 59 at the time of loan application.
- An excellent credit report
Wema Bank is the founder of ALAT, Africa’s first totally digital bank. Despite having decades of banking industry expertise, the Bank has continued to be creative in providing value to its stakeholders. The Nigerian firm, which is publicly traded, has been successful in creating a tradition of trust and tenacity that has earned it the devotion of its clients. At every stage of their client’s life, the Bank introduces new products and services that are specifically designed to meet their needs.
As a result of its expansion as a bank, they now own a national network of branches and cutting-edge technology. They changed into Wema Bank PLC and began a new chapter in their ascent to prominence in 1945.
In 2009, Wema Bank emerged as a regional financial titan. The introduction of ALAT, Nigeria’s first entirely digital bank, as a ground-breaking Wema Bank offering in 2017 cemented its status as not just Nigeria’s oldest indigenous bank but also the world’s most resilient digital technology adopters.
Millions of Nigerians and foreigners may use the retail, SME, trade, treasury, business advisory, and corporate banking services that their over 150 business offices and internet platforms offer, and companies in Nigeria, assist them in achieving their financial and personal objectives. Wema Bank created the computerized ALAT application to provide loans.
How to qualify for a Wema Bank ALAT loan?
- Have up to NGN100,000 or more in your goal savings
- Have a typical ALAT account
- Reviewed and updated qualifications e.g. transactions.
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It is now quite simple to obtain a loan in Nigeria because of these loan companies. Determining which platform is legitimate and which is fake is the challenge. As a result, there are many misconceptions in the market, and customers are unable to distinguish between the truth and deceptions. We’ve produced this article for this reason.
The Nigerian government and CBN have both registered and given their legal approval to the aforementioned companies. Please share your thoughts on this topic in the comments section below!