While looking for a loan, finding the cheapest and the best loan can be difficult, and numerous aspects, such as the various loan conditions, time constraints, and monthly installments, will need to be taken into account. The loan period, anywhere from one week to three years, specifies how long you have to pay back the borrowed money.
If you get a loan of ₦100,000 with the term of 1 month, the fee will be ₦5,000 and your total payment will be ₦105,000.
If you get a loan of ₦150,000 with the term of 2 months, the fee will be ₦15,044 and your total payment will be ₦165,044.
If you get a loan of ₦1500 with the term of 4 weeks, the fee will be ₦1,190 and your total payment will be ₦2690.
If you get a loan of ₦1,000 with the term of 30 days, the fee will be ₦700 and your total payment will be ₦1,700.
If you get a loan of ₦500,000 with the term of 6 months, the fee will be ₦20,000 and your total payment will be ₦520000.
If you get a loan of ₦100,000 with the term of 30 days, the fee will be ₦3,500 and your total payment will be ₦103,500.
You can compare any loan, from personal loans to debt consolidation loans to secured loans with varying amounts.
Yes. Some money lenders charge fees like an Application fee, an appraisal fee, a commitment fee, a legal fee, an annual fee, a late payment fee, a returned loan fee, or a prepayment penalty. By comparing your loan options, you can avoid some of these fees.
By carrying out a loan comparison, you protect yourself from high-interest rates you might not be able to pay.
As a borrower, there are specific criteria you will have to meet to qualify for a loan you want. The money lender must also be a legitimate financial institution with a license. Any transaction between you and the financial institution will be backed and protected by separate legislation across various states in Nigeria.
Before you start your loan searching and comparing loan options, you must confirm that you meet some general criteria for accepting loans. Here are some standard criteria for qualifying for a loan:
Other money lenders might require your BVN before processing your application. Compare your loan options and check if you meet the qualifications.
To compare loan terms, you must look at the available options and choose the one with the shortest loan term. Doing this will increase your monthly payments but reduce the overall interest of the collected loan.
For example, if you receive a loan of ₦300,000 with an interest rate of 5%, the loan terms could be:
This difference is substantial. In this case, the long-term loan (24 months) will cost you ₦34000 more than the short-term loan. Therefore, if you can handle large payments, choose the short-term loan.
Navigating how to compare loans involves considering the interest or annual percentage rate (APR). It is an essential factor to consider when looking for a good loan. The APR must be regarded, especially if you are looking for long-term loans with a high-interest rate.
With variable loans, you can compare interest rates and choose whether you are comfortable with long-term or short-term loans. The annual percentage rate (APR) determines how much you will ultimately spend. You will pay less in interest fees the lower the APR, although this varies depending on the loan lender.
Performing a complete loan comparison also means comparing the delivery time of each loan option. When comparing loan options, consider how fast you need the loan. If it is an urgent loan, look for loan options that will approve or reject your loan application in the shortest time.
Personal loan lenders can approve your loan within minutes, others might take days, and secured loans at big financial institutions might require a lot of paperwork, bureaucracy, and weeks. However, if you want a substantial long-term loan for an enterprise, you can apply for a loan at an established financial institution. This loan could be up to ₦15 Million.
Some loans might require paying an initial commitment fee or appraisal fee. After, other fees could apply depending on your loan lender. Compare your loan options and if available, apply for the loans with minimal or no payments.
Some short-term loans from personal loan lenders do not require a legal fee. However, a fee could apply if you want to receive a long-term loan for an enterprise from an established financial institution.
Comparing your loan options is not a complex affair. However, there are different factors to consider if you want to understand how to compare loans. For example, you can consider loan terms, interest or annual percentage rate (APR), delivery time, and loan fees. These factors can be easily compared once you know the interest rates or fees you can handle and how the loan received will be used.
After performing a loan comparison, you can apply for a loan and get it approved within minutes or weeks. This way, you feel confident that you have made the right decision.