How To Find and Apply For The Best Payday Loans In Nigeria
The payday loan element of acquiring credit facilities in Nigeria is still largely untapped as most of its potential are lying fallow. As the name implies, this loan is available to salary earners, although entrepreneurs with well-structured earnings may also apply.
By its nature, with Payday Loan, one can borrow money for low interest with little or no documentation or collateral. Some of the characteristics of payday loans include a fixed interest rate, easy approval, instant access to the funds, as well as hassle-free application processes among others.
Using the latest technology, most financial institutions have simplified the process by generating a short code that customers with salary accounts can dial and get loan offerings. For those interested in getting more from the loan services, taking the traditional route may prove more rewarding.
Finding The Best Payday Loan
Ordinarily, one would recommend a google search, but that would mean navigating a labyrinth of information, most of which would be irrelevant. However, NairaCompare has taken pains to aggregate the best payday loan offers available to make the process seamless. On this platform, you get a list of loan offers from which you can select the best deal for you.
By their nature, payday loans are short-term unsecured loans that do not require the borrower to provide any form of collateral. However, in order to successfully apply for these kinds of loans, you must be aware of certain policies, such as loan renewal policies and rollover rules.
Applying For A Payday Loan
By its nature, payday loans are intended to help consumers get some quick cash to hold them over until their next paycheck, hence its name. Payday loans also go by other names like cash advance loans, deferred deposit loans, post-dated check loans, or check advance loans.
Some basic but very important requirements for a payday loan are a source of income, a bank account, and valid identification. Borrowers must be at least 18 years old
The process of applying for a payday loan can be concluded within minutes, but the loans come with extremely high interest rates that catch many people in a spiral of rising debt.
The loan can be approved in as few as 15 minutes. In most circumstances, the borrower writes a check for the loan amount plus a lending fee, and the lender holds onto the check until a predetermined due date.
The Risk of Payday Loans
Many borrowers run into financial trouble with these kinds of loans when they can’t pay them off when they first come due. Each time the borrower extends the loan, more fees are tacked on.
Many people with bad credit apply for payday loans to get cash quickly. The application process only takes a few minutes, but it’s important that you read the terms and conditions of your agreement thoroughly before signing on the dotted line.
What To Look Out For When Applying For Payday Loans
In taking out a payday loan, borrowers are advised to be aware of certain policies, such as loan renewal policies, rollover rules, and early repayment penalties. Also it is important to maintain integrity by not emptying your account before the due date when the lenders are to make the deductions.
In order to apply for a payday loan, the following steps may come in handy:
Provide Your Personal Information
It is important to establish your identity when applying for a payday loan. This will require the borrower to fill out his or her personal information, either online or physically, depending on the financial institution. When entering personal information, make sure to use the official name, address, phone number, date of birth and National Identity Number (NIN). This will ensure that lenders can easily verify your identity during the approval process.
Provide Proof Of Income
There can be no payday loan without proof that one is getting paid. To be able to secure the loan, you will need to provide proof that you are employed or have some other source of income. This could either be your most recent pay slip, or a bank statement detailing income and outflow. This would help the lender establish the sincerity of the borrower.
Fill Out Your Bank Account Details
Payday lenders require that you provide them with your bank account details so they can easily deposit the funds as soon as possible. In the recent past, most payday loan lenders usually deposit the funds on the next business day following the approval but with advancement in technology, funds get deposited almost immediately.
Agree To The Fees And Terms
Once you have completed your application, review all of the fees and terms. If everything is correct, proceed to click “submit” or “next” to complete your application. This will send it directly to a lender for review. You should receive an instant response from a lender about whether you have been approved for the loan.
Choosing A Payday Loan lender
Having decided to opt for a payday loan, it is important that you search only through reputable lending companies that offer fair interest rates and transparent terms and conditions. NairaCompare has a pool of reputable financial institutions that offer payday loans with fair interest rates.
Before you decide on which to settle for, it is important to have the following tips on hand.
- A reputable payday lender must not charge any upfront fees.
- A reputable payday lender will not engage in any sort of coercion or harassment if you reject their offer to provide you with a loan.
- A reputable payday lender should be able to lend you money even if your credit score is low.
- A reputable payday lender will never charge hidden fees.
Also, it helps to look for customer testimonials online to see what other customers are saying about the company’s service, pricing, and convenience.
In situations where salaries are delayed, the loan amount will be deducted from any inflow into the customer’s account. Due to recent legislation in Nigeria, where the loan is past due, the deduction will be made from any account linked to your BVN.
Tips On Maintaining A Good Credit Score
When it comes to getting payday loans, maintaining a good credit score is not a determining factor. However, a timely repayment will help ramp up your credit score. Paying off a payday loan can help show creditors that you are a responsible borrower.
You can rebuild your credit score after taking out a payday loan by making sure that you make all of your payments on time. Second, try to pay off the loan as soon as possible.
Be Cautious When Applying
Although they might seem like a quick fix to financial challenges, payday loans are not without their cautionary tales. It is advisable to think well before borrowing, remembering that there are other financial obligations to be met.
Payday loans, though not very expensive in nature, have been known to plunge borrowers into a cycle of debt. statistically, borrowers are said to be unable to repay the loan in the typical repayment period.
Also, be careful of the kind of establishment offering the loan facility. Some are known to engage the services of ruthless debt collectors who will go to any length to harass loan defaulters.