This article will provide you with all you need to know about online loans with monthly payments in Nigeria and the ussd code that can be used to borrow money online.
Online loans allow you to complete the entire borrowing process, from loan funding to prequalification, without setting foot inside a bank branch.
They can be an easy way to borrow money, and online-only lenders could offer lesser rates or have low stringent requirements than you can find with traditional lenders.
10 Easy Ways to Approve Online Loans with Monthly Payments in Nigeria
Here is a list of the easy ways to approve online loans with monthly payments.
#1. The Loan Application
A loan application is a document that lenders expect prospective borrowers to complete and submit to begin the lending process.
Each lender has its loan application, so that the specific requirements may differ. Generally, you will need to provide basic personal information, the purpose of the loan, and how much you want to borrow.
#2. Proof of Identity
Most lenders require applicants to provide at least two forms of government-issued identification to prove they are 18 years and above, and this precaution reduces the threat of identity theft.
Acceptable forms of government-issued identification include a Certificate of citizenship, Birth certificate, Driver’s license, Passport, and Other state-issued ID.
#3. Income Verification
A lender will want to know that you can pay back your current loan and the new loan. To do this, lenders require prospective borrowers to provide their employment history and present earnings as part of the application process.
Forms of income verification for traditional employment may include: Bank statements, Paystubs, returns, Employer contact information, et. c
#4. Proof of Address
Most lenders want to know that you have a good and stable living situation, and it may involve providing proof of your address, including a voter registration card or proof of home, recent utility bill, rental or auto insurance that lists your address, a copy of your lease or other rental agreement.
#5. History and Credit Score
An applicant’s credit score is one of the essential factors a lender considers when evaluating a loan application.
Credit scores range from 301 to 851 and are based on payment history, length of credit history, and amount of outstanding debt.
Many lenders require applicants to have a minimum credit score of around 600, while some lenders might lend to applicants without any credit history.
#6. Your Income
Lenders impose income requirements on borrowers to ensure they have the means and ability to repay a new loan. Minimum income requirements differ by lender.
Evidence of income may include monthly bank statements, recent tax returns, pay stubs, and signed letters from employers; self-employed applicants can provide bank deposits.
#7. Debt-to-income Ratio
DTI (Debt-to-income ratio) is expressed as a percentage and represents the portion of a borrower’s gross monthly income toward her monthly debt service.
Lenders use DTI to forecast a prospective borrower’s ability to make new and current debt payments.
If you are applying for a loan, the lender will ask you to pledge collateral or valuable assets.
#9. Origination Fees
Many lenders expect borrowers to pay personal loan origination fees to cover the costs of running credit checks, processing applications, and closing.
These fees usually range between 1% and 9% of the total amount of the loan, depending on factors like the loan amount and the applicant’s credit score.
#10. Don’t ask for too much cash
Requesting for bigger money than what you need to reach your financial goal can be seen as risky and ignorant by lenders and may make it hard for your loan to get approved.
A larger personal loan also reduces your budget, as higher loan payments derive the ability to meet other financial obligations, such as mortgage payments or student loans.
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USSD Code for Loans in Nigeria
Unstructured Supplementary Service Data (USSD) are codes used to access options through your mobile phone network provider.
USSD can be used for various things such as mobile money, callback service, content, and information or to provide network configuration services. Below are some USSD codes for loans in Nigeria
AB Microfinance Bank – *389*755#
Access Bank Payday Loan – *901*11#
Airtel Quick Cash – *561#
ALAT Loan By Wema Bank – *945*100
Carbon Loan – *1303#
Ecobank Xpress – *326#
Fair money Loan – *322*2#
FCMB – *329#
First Bank First Advance – *894*11# or *894#
Zenith Bank Loan – *966#
Using USSD codes to access loans is great for when you need quick cash or are looking to avoid the strenuous means of getting a loan. They require less, and you should get your loan if you meet all requirements in minutes.