HOW TO ACCESS LOANS IN NIGERIA Part 1
When applying for an online loan these days, most companies will ensure that they verify the applicant before proceeding and funding their loan. This is a standard process to ensure that the loan is actually for that borrower and allows them to ask any follow up questions to make sure that the loan is appropriate for them. In this guide we will discuss a few of the key requirements to access loans in Nigeria.
Key requirements to access loans in Nigeria
- Employment status
- Bank details
Here are some of the follow up questions you can expect to come across after the initial basic queries.
It is essential that the lender asks the individual to verify their identity. This is commonly:
- Can you please confirm your BVN?
- Can you please confirm your address?
- Can you please confirm your telephone number?
The lender should be able to cross reference information used in the application form. This is a quick check only lasting a few but the rest of the confirmation cannot proceed with it.
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Employment and income
Borrowers usually need to have a current employment and earning a certain amount per month to be eligible for a guarantor loan – this is because this is how they are expected to repay their loan.
As the applicant will fill in this information on the online form, it is important for moneylender to cross-check this. It is common to ask for a borrower bank account statement to back up their income and employment.
A recent bank account statement from the last month shows that they are likely to still be employed (unless they have left their job, further proof may be required) and it confirms their monthly take home.
This information is key to determine how much the individual can borrow – this is because the lender may have to adjust the amount requested so that they can afford monthly repayments without falling into arrears.
Sometimes you may find that the person has no job at all or their income is a fraction of what they have stated. This helps the lender when making their final decision, which could result in not proceeding with the application.
Other times, if their bank details have been flagged, the moneylender may request a copy of a bank statement to confirm any bank details and income too. Sometimes, the lender may spot other information on the bank statement that affects the chances of approval. Seeing things like debt management, government benefits and gambling are sometimes signals that suggest the lender does not want to be involved.