- This article explains an alternative way of funding your new car purchase in Nigeria: a loan.
- It also shares guides on how to obtain car loans in Nigeria that will help you purchase your dream vehicle.
- This article also explains car loans, what they often are, and how they work.
Purchasing a new car can be an expensive venture, and not many Nigerians can easily afford it. For one, car financing in Nigeria is not as active, and those who want to buy cars often go for the ones they can afford in full.
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But, what if you can afford a new car in Nigeria just with a car loan? In this article, we share information and a guide to obtaining a car loan in Nigeria today.
While getting a car loan can be a challenge, especially if you are faced with lots of financial difficulties or a poor credit history, there are still available options to get a loan for your next car purchase in Nigeria.
How Do Car Loans Work in Nigeria?
A car loan is money obtained to help you cover either the purchase or repair of a vehicle. They can be personal loans, which means you don’t need to provide collateral, or ones obtained from the bank with collateral or even from an online lender.
Like any other loan, car loans are straightforward, which means you apply for them with the specific need of using them for your car. However, not all traditional banks offer car loans, and the ones who do often have high-interest rates.
If your loan is approved, the lender provides you with the amount that will cover whatever car cost you are going for. The lender will also set up a repayment plan for you on how you are expected to repay the loan.
How Much Can You Borrow for Car Loans in Nigeria?
Before applying for a car loan in Nigeria, it’s important to first know how much you will need. It will help you determine how much the lender is willing to provide, and how much more you have left. Car loans in Nigeria range from N1 to N20 million as the case may be. In some cases, the lender pays for the car in full while you begin the process of repaying them.
Where Can I Get Car Loans in Nigeria?
There are different ways of getting car loans in Nigeria. They can either be gotten from an individual or through an organisation. Here are some available car loan options in Nigeria today:
- The First Bank of Nigeria Car Loan
This loan is to help you purchase a car. It is accessible to registered business owners in Nigeria. If you have a registered business, you can apply for the First Bank car loan to purchase a car for your day-to-day activities.
- The Access Bank Group (Vehicle Finance)
Vehicle finance is a product of the Access Bank Group that is designed to enable their customers to acquire their dream cars. The limitation is that these vehicles can only be purchased from the bank’s accredited dealers.
- Cars45 Car Loan
Aside from being an online marketplace for used cars, the platform also offers car loan options to customers to help them finance their car purchases. The limitation is that only income earners can access the loan.
- The United Bank of Africa (UBA Auto loan)
The UBA auto loan was created to help UBA customers who want to upgrade their cars or purchase a new one. It provides customers with a maximum loan amount of N15 million and a maximum repayment plan of 48 months.
Easy Steps for Getting Car Loans in Nigeria Today
These are some easy steps that will guide you with getting any car loan in Nigeria today. They include:
- Determine your budget: Know how much the car you are purchasing costs. This will help you determine how much you will need from a loan.
- Research lenders: Once you know how much you need, start researching lenders in Nigeria. Some Nigerians prefer private lenders to banks. In some cases, you can even get a car loan from your place of work.
- Gather necessary documents: Once you’ve gotten a lender, it is time to prepare the documents you will be presenting to them to show your eligibility and help your loan approval.
- Apply for the loan: The next step will be making that loan application, and waiting to hear back from lenders.
- Finalise Loan Approval: If you’ve been approved, the lenders will reach out to you to inform you of the offer they will be providing you.
- Choose a Car: Once you’ve got the funds, the next thing will be using them for the vehicle you want to purchase.
- Begin Repayment: After getting your car, it’s then time to begin the process of repaying the loan through a plan the lender sets up for you. Usually, it’s monthly.
Conclusion
It’s possible to get a car loan in Nigeria. However, getting a car loan in Nigeria should specifically be for business purposes as it will help you meet up with the crazy repayment plan of most lenders.
