At some point in life, people get hit with a sudden financial crisis that needs an urgent solution. In the past, gathering funds to manage such circumstances would have been challenging. However, the rise of digital lending systems has saved the situation for many people. With the advent of quick loans, individuals can apply for and get credited with funds in a matter of minutes.
What Is A Quick Loan
Quick loans are loans that are issued in a short amount of time. Quick Loans are usually subject to less rigorous screening and approval processes. They are often extended to people who have bad credit or who need to secure financing very quickly and often come in the form of personal loans in small amounts.
A relatively new element in the loan space, quick loans may come in the form of short-term loans, salary advances, lines of credit, and so on. Borrowers often have the option of choosing what is suitable for their needs right from their mobile devices.
How Are Quick Loans Different?
Quick loans are vastly different from the traditional loans that are available in banks and financial institutions. With quick loans, the lending process is fast and involves easy registration and verification. For Eligible borrowers, the lender immediately transfers the required funds into their bank account.
One feature of quick loans is that they can be repaid on comfortable terms. Along with the regular products, some banks in Nigeria have started offering this product catering to the needs of varied borrowers.
Finding The Best Quick Loans In Nigeria
In Nigeria, there are over 20 loan outfits that offer quick loan services. While some have built a reputation for themselves over the years, others are relatively still unknown. Most of the quick loan platforms have zero physical documentation, and the loans can be applied online just using your mobile phone. Though some banks provide quick loans, non-banking financial companies (NBFCs)BFCs, and online lenders are the popular channels for availing of quick loans.
One way of getting the best offer from the loan service provider is by visiting the official website of the lender. There, you will find all the information you need.
Applying For A Quick Loan
Downloading the mobile application is the first step toward engaging their services. As a potential borrower, first, you need to download the mobile app from either Google Play Store, Apple IOS, or any other App Store that is relevant to your device.
The next, and perhaps the most important step, is to register yourself with your social media profile or by creating a new profile on the mobile app. After entering basic details such as an address, National Identification Number (NIN), bank details, and photograph, you will need to upload the valid documents. The app will review your request and the money will be disbursed to your bank account post approval.
So ensure that the loan platform is credible so you don’t give out vital information that doesn’t fall into the wrong hands.
Features of Quick Loans
Quick loans are quite different from traditional loans in quite a number of ways. Some of the salient features of quick loans are:
Registration Process: The registration process for quick loans is quite seamless and can be covered within minutes. This process is easy and requires zero physical documentation in most cases. Personal, income, employment details, and credit history are to be provided.
Quick Verification: Once you have registered with the lender expressing your interest to avail a quick loan, your details are verified immediately, and the loan is processed for approval.
No Collateral: Unlike traditional loans, quick loans are typically unsecured loans as borrowers do not need to pledge any collateral to secure the loan.
Interest Rate: As quick loans are unsecured loans, the rate of interest will be higher, considering the risks involved in the lending process.
Tenure: Quick loans are generally shorter. The minimum repayment period could be a month while the maximum could be as long as two years. Borrowers are given the option of choosing a quick loan that offers a comfortable repayment period.
Speedy Disbursal: Depending on the lending platform, a quick loan can be accessed in a matter of hours and borrowers can get the money disbursed on the same day.
No Credit Check: Most Nigerian lenders do not require a credit check to be done on the applicant before giving out loans. Although it is important to note that maintaining a clean record with the lender will determine whether you will get a loan a second time. And with most lenders, the more you meet payment deadlines, the more your chances of securing higher loan amounts. That way, first-time borrowers can access credit and build their credit in a positive way.
Easy Online Application: As long as you get the hang of internet-enabled mobile devices, with the proper documentation, anyone can apply for a quick loan in Nigeria. Many lenders today have made the process of applying for a quick loan easier through online methods. Little or no paperwork is involved.
Eligibility For Quick Loans
Owing to the ease with which quick loans can be accessed, the eligibility criteria for availing of such a loan have been simplified. Depending on the type of quick loan being applied for, they are usually available to individuals between the ages of 21 to 60, salaried or self-employed individuals, Nigerian residents, and a mandatory bank account through which the funds can be disbursed among others.
In taking out a quick loan in Nigeria, be sure to compare the terms and conditions attached to several of the loan providers. It is not advisable to jump on the very first loan on is offered.
Be sure to go through the terms and conditions of what each of these loan outfits is offering so you don’t find yourself in a tight knot. Also, as earlier stated, guard against non-traditional loan service providers, also known as loan sharks.