This is a loan offered by Union bank of Nigeria where a salary earner whose company pays through union bank receives 50% of his/her salary as an overdraft for a period of 12 months at a very competitive rate. In this type, the minimum monthly salary to be considered is 15,000 naira, while the maximum loan amount is 50% of borrowers salary.
SME Loans
These are loans given to small or medium business owners. They’re being given to them to help grow their businesses. The borrower must have a verifiable business address. Small business loans aren’t given to business starters, you must have started the business and must have run it for at least 1 year before you can apply for this loan. The loan can be used to pay employees salaries, payment of debts, marketing expenses, opening a new branch which is part of business growth and expansion etc.
As stated earlier, before you can be eligible for this, you must have run your business for at least a year because annual turnover audited by a Chartered Accountant is a major requirement. Other requirements include: income tax returns, age of business, business address etc. The eligibility criteria may vary according to lender.
Credit Card Loans
Borrowing of this loan involves the use of a credit card. Credit card loans come with very fantastic rewards if they are paid on time. The high rate of interest on this type of loan isn’t encouraging at all, therefore do not apply if you can’t afford to pay the high rate of interest. You can get your credit card online and use it anywhere in the world to make transactions. Credit cards are widely accepted all over the world. Timely payment of credit card loans is key to successful future borrowing. If you don’t pay on time, the borrowed amount with the interest will keep accumulating there and it may be too difficult for you to clear the debt.
Cash Advances
This loan is mostly issued by credit card issuers. Credit card users are allowed to withdraw money from the ATM using the credit cards issued to them https://rapidloan.net/installment-loans-fl/. Every credit card has a credit limit, therefore the amount to be withdrawn is heavily dependent on the available credit limit. This loan is also associated with interest, ATM and bank charges. Cash advances are mostly used for home renovation or payment of services of contractors or purchasing of household equipment.
Car Loans
All car loans are secured loans. You must present a collateral before purchasing your dream car from the acquired loan. Credit score is a great requirement as you must have a very good financial history before any financial institution can grant your request for a car loan. In Nigeria, your must provide your BVN irrespective of the type of loan your’re applying for, therefore car loan isn’t an exception. Most vehicles purchased with it usually have a tracking device. The lender tracks the movement of the vehicle until the loan is paid off. If the borrower fails to pay up before the payment duration elapses, the car would seized by the lender. Most cars purchased through this loans are insured with auto insurance companies.
Two-Wheeler Loans
This is an easy to apply and get loan. The loan is strictly used to purchase a two-wheeler. Failure to pay your installments on time, the lender will take the two-wheeler to recover the loan amount or the balance left.
Agricultural Loan
This Agric loan are mostly given to farmers for farming purposes. Banks and other financial institutions, government agencies, NGO’s and some individuals are usually behind its funding. The loan can be short term or long term.
Leave a Reply