5 Requirements To Take A Loan In Nigeria

5 Requirements To Take A Loan In Nigeria

5 Things You Should Know Before You Take A Loan In Nigeria.

As a business owner, especially in a country like Nigeria, there are times when you’ll need to take a loan to finance your business. They are a big source of financial assistance for individuals and businesses.

The basic reason why most people take loans is to provide an alternative source of income. These incomes are necessary for their personal needs or for their business goals. 

Whatever it is you need a loan for, it is necessary to know these 5 things before you take a loan in Nigeria.

Whether for personal purposes or business reasons, before you approach a financial institution to borrow money, know these 5 checks that’ll make you eligible.

  1. Have A Bank Account:

What! Don’t tell me you’re considering a loan without having a bank account. 

Having a bank account is the first and most important thing in taking a loan. 

You need to have an existing Nigerian bank account to take a loan.

Aside from them needing your account details to verify that you’re eligible for the loan, they also need them for the deposition of your loan funds.

Even if you’re getting the loan from instant online loan apps, you’d still need a bank account for it.

  1. Be Of Legal Age:

This is another important factor that you should check on your list if you want to take a loan either from loan banks or loan apps. None of them will give a loan to an underage person. 

To qualify for a loan in Nigeria, you must be 18 years and above.  Younger persons are not able to access loans from any platform. You may wonder why but you’d agree with me that an individual who hasn’t reached the legal age may not be able to fend for themselves not to speak of repaying a loan.

So before you decide to take a loan, make sure you’re of legal age.

  1. Be Prepared For The “Know Your Customer” (KYC) Requirement:

“Know Your Customer”, also called the KYC requirement,  is an important aspect of a loan. Whether you’re taking your loan from a bank or from loan apps, know how to fill the KYC requirement correctly.

KYC is a standard verification process that requires you to provide the following:

  • Your Proof of Identity. This may be your National Identity Card, Passport, or Driving license.
  • You’d be asked to take a selfie. A selfie is a photo of yourself, with your entire face visible. It is advisable to take a selfie in a well-lit environment, the light will help to capture your face well.
  • Your Address.
  • Any other thing that the bank or app finds necessary.
  1. Have A Good Credit Rating:

To qualify for a good loan you need to have a good credit rating. If you want to know how to have a good credit rating, check out my other posts. They’ll guide you.

All financial institutions will run a credit check to determine how much loan they can give out to you and how likely you are to repay your loan. A good credit score will give you the best chance of getting approved with a good interest rate.

  1. Be Able To Repay:

Before you take a loan, be sure that you have the means to return it. This is important.

While a good credit rating is all it takes for unsecured loans, secured loans require you to pledge assets as collateral for the loan as a guarantee that you will be able to repay. If you don’t pay up, they have the right to seize your pledged assets. For unsecured loans, they know how to pick people who decide not to pay them. So before you take that loan, make sure you have what it takes to pay it back.


It is important to understand the terms and conditions of a loan offer to choose the one that is best for your needs. Above all, have it in mind that you shouldn’t take a loan if you do not have the means to pay it back. If you have the means to, make sure to have the above 5 factors checked on your list.