Loan Details
Personal loans from Nigerian banks and fintechs. Typical rates: 24–36% p.a. (fintechs), 18–30% p.a. (banks).
Monthly Repayment
Repayment Schedule
| Month | Opening Balance | Payment | Principal | Interest | Closing Balance |
|---|
Current Loan Rates in Nigeria (2026)
| Lender / Product | Rate (p.a.) | Max Amount | Max Term | Notes |
|---|---|---|---|---|
| Carbon (Paylater) | 5% /month | ₦3M | 12 mo | Instant, no collateral |
| FairMoney | 2.5–30% /month | ₦3M | 12 mo | AI-underwritten |
| Renmoney | 2.8–9.8% /month | ₦6M | 24 mo | Salaried employees |
| GTBank QuickCredit | 1.5% /month | ₦5M | 12 mo | GTBank customers only |
| Access Bank PayDay | 1% /month | ₦1M | 1 mo | Salary account required |
| FCMB Fast Cash | 2% /month | ₦200k | 3 mo | USSD: *329# |
| BOI SME Loan | 9% p.a. | ₦500M | 10 yrs | Collateral required; business only |
| CBN Agric Loan (NIRSAL) | 9% p.a. | Varies | 7 yrs | Agriculture sector |
| Microfinance (typical) | 3–10% /month | ₦500k | 6 mo | Group or individual; local MFBs |
Rates as at mid-2026. Verify with lender before applying. Monthly rates converted: 1%/month ≈ 12.68% EAR; 5%/month ≈ 79.6% EAR.
Choosing the Right Loan
Personal Loan
Emergencies, education, home improvements. No collateral from most fintechs. Watch EAR — 5%/month compounds to ~79% annually.
Car Loan
Vehicle is collateral. Banks offer 18–25% p.a. over 24–36 months. Comprehensive insurance required.
Business Loan
BOI/CBN intervention funds at 9% p.a. for qualifying SMEs. Commercial banks charge 20–30% p.a.
Microfinance
Fast, minimal paperwork, highest effective rates. Compare multiple MFBs before borrowing.
Frequently Asked Questions
Why is the effective annual rate higher than the advertised rate?
Lenders quote monthly rates. 5%/month → EAR = (1.05)^12 − 1 = 79.6% p.a., not the 60% simple equivalent. Always compare EAR across lenders.
What is a processing fee and how does it affect my loan?
A one-time charge (typically 1–3%) deducted before disbursement. Borrow ₦500k at 2% fee: receive ₦490k, repay ₦500k. Raises your effective rate.
How much loan can I afford?
A common rule: total monthly debt repayments should not exceed 30–35% of take-home pay. At 40%+ you risk default under income shocks. Use the income field above to see your repayment-to-income ratio.
What is the cheapest way to borrow in Nigeria?
In order of typical cost: (1) CBN/BOI intervention loans at 9% p.a. — if you qualify; (2) salary-backed bank loans at 18–24% p.a.; (3) bank fintech products at 12–24% p.a.; (4) standalone fintechs at 30–100%+ EAR. Avoid microfinance unless you have no other option.
Can I pay off my loan early?
Yes, but check for prepayment penalties (1–3% of outstanding balance at some lenders). Early repayment saves significant interest since amortising loans are front-loaded.