Payday Loan in Nigeria: Top 5 Banks and their requirements

Have you found yourself in an emergency situation and need funds to wiggle out? A payday loan in Nigeria is probably your best option.

These loans are intended to help individuals bridge temporary financial gaps or cover unexpected expenses.

Payday loan in Nigeria, also known as a salary advance loan, is a short-term borrowing option designed to provide individuals with quick access to funds before their next paycheck.

To apply for a payday loan, individuals typically need to submit an application to a payday loan provider.

This can be done online through the provider's website or mobile app. The application process is usually quick and straightforward, requiring basic personal and financial information.

Top payday loans and their requirements

If you are considering taking out a payday loan, be sure to compare the offers of different lenders and make sure you understand the terms and conditions before you sign anything.

Here are some of the top payday loans in Nigeria and their requirements:

1. GTB – QuickCredit

QuickCredit is an innovative product by GTBank designed to give its retail customers instant access to cash for their pressing needs.

Customers with salary accounts with the Bank can borrow up to 100% of their monthly salary at only 18% per annum interest rate and enjoy up to 12 months flexible repayment plan.

To access the loan, borrowers need to provide;

● Means of ID (Drivers License, int’l passport, voters card, National ID)

● Two Individual external guarantors with proper means of identification

● Valid ID – Driver’s ID, National ID or International passport.

● Three (3) months stamped statement of account

● Signed post-dated cheques

● Utility bill (within the preceding 3 months)

● BVN

2. Zenith Bank – Eazy Loan

Zenith Bank’s Eazy Loan is an easy-to-access loan product for account holders.

The get an Eazy Loan, your Zenith Bank account must be the account into which your pay and allowances are deposited.

Requirements for loan include;

● Utility bill (within the preceding 3 months)

● Valid ID – Driver’s ID, National ID or International passport.

● BVN

● Two Individual external guarantors with proper means of identification such as BVN

● Three (3) months stamped statement of account

● Signed post-dated cheques

3. Stanbic Bank – EZCash

Are you in need of quick cash? The Stanbic Bank Quick loan (EZCash) gives you funds ranging from 20,000 Naira to 4,000,000 Naira at an interest rate of 3.0% monthly to pay back within 12months.

Requirements for loan include;

● BVN

● Two Individual external guarantors with proper means of identification such as BVN, four (4) passport photographs, Identity Cards and Letter of Intent to guarantee the loan.

● Utility bill (within the preceding 3 months)

● Valid ID – Driver’s ID, National ID or International passport.

● Signed post-dated cheques

4. Access Bank – Personal Loan

Access Bank’s Personal Loan enables customers to empower their financial independence.

Its features include flexibility to meet individual needs, loan amount up to 75% of net annual salary, or loan amount up to 50% of net annual salary.

To access the loan, borrowers are required to present;

● BVN

● Three (3) months stamped statement of account

● Valid ID – Driver’s ID, National ID or International passport.

● Signed post-dated cheques

● Utility bill (within the preceding 3 months)

5. Polaris Bank Quick loan

Quick Loan, a product of Polaris Bank helps borrowers meet their urgent needs.

With Quick Loan, borrowers can access up to N70 million with a flexible and convenient monthly repayment over a period of 60 months

The loan requires borrowers to

● Signed post-dated cheques

● Provide two individual external guarantors with proper means of identification

● Valid ID – Driver’s ID, National ID or International passport.

Key factors that determine eligibility for a payday loan

When applying for a payday loan in Nigeria, your eligibility is typically assessed based on several key factors that help lenders determine whether you're a suitable candidate for the loan.

Here are some key factors that play a significant role in determining your eligibility for a payday loan:

● Income and employment status

Lenders often require borrowers to have a stable source of income. Your employment status, whether you're employed, self-employed, or receive regular income from another source, will be considered.

● Age and residency

You must meet the legal age requirement (usually 18 or 21 years old) and be a resident of the country or state where the payday loan is being offered.

● Credit history

While payday loans are often marketed to individuals with bad credit, some lenders may still check your credit history to assess your creditworthiness.

Poor credit history may not necessarily disqualify you, but it could impact the loan terms and interest rates you're offered.

● Bank account

You'll typically need an active bank account where the loan funds can be deposited and repayments can be withdrawn. This also helps lenders verify your financial stability.

● Debt-to-income ratio

Lenders may consider your debt-to-income ratio to assess whether you can afford to repay the loan alongside your other financial obligations.

● Repayment ability

Lenders will assess your ability to repay the loan by analyzing your income, expenses, and other financial commitments.

● Loan history

Some lenders may consider your history with their company, including whether you've successfully repaid loans in the past or if you have any outstanding payday loans with them.

It's important to note that payday loans are often considered high-risk loans due to their short repayment terms and high-interest rates.

As such, lenders will focus on minimizing their risk by evaluating your ability to repay the loan promptly. Before applying for a payday loan in Nigeria, it's advisable to carefully consider whether you truly need the loan, explore alternative options, and ensure that you fully understand the terms and conditions of the loan.

Reasons your payday loan application gets rejected

When applying for a payday loan, it's important to avoid certain mistakes that could lead to your application being rejected.

Here are some common mistakes to steer clear of.

● Providing inaccurate information:

Ensure that all the information you provide on your application is accurate and up-to-date. Lenders may verify the information you provide, and inconsistencies could lead to rejection.

● Not meeting eligibility criteria

Each payday lender has specific eligibility criteria that borrowers must meet. These criteria usually include age, income, employment status, and residency.

Failing to meet these criteria could result in rejection.

● Borrowing beyond your repayment capacity

Borrowing an amount that you cannot comfortably repay by your next payday is a common mistake.

Lenders assess your repayment ability, so avoid borrowing more than you can afford to repay.

● Having an unstable income

Lenders typically require borrowers to have a stable source of income. If your income is irregular or unpredictable, lenders may view you as a higher risk, leading to a rejection.

● Multiple outstanding loans

Having multiple outstanding payday loans with different lenders at the same time could signal financial distress to lenders and lead to rejection.

● Incomplete documentation

Failing to provide all the required documentation or not submitting them in a timely manner can result in a rejected application.

● Poor credit history

While payday loans are often accessible to individuals with bad credit, a history of unpaid loans or serious credit issues could still lead to rejection.

Remember that a payday loan in Nigeria is meant for short-term financial emergencies.

If you find that you're repeatedly relying on payday loans, it might be a sign that you need to address underlying financial issues or seek alternative solutions to manage your finances more effectively.

Visit nairaCompare to know more about payday loans and other available loan products.