How to Apply for Long-Term Loans in Nigeria

Are you working on a capital-intensive project in Nigeria? Are you in need of a loan to complete it? Banks and other financial institutions can grant you what you need.

Long-term loans in Nigeria constitute home loans, business loans, machinery loans, importation loans, and more. They are available to individuals, couples, and business owners, usually for a repayment term of two years and above.

Unlike instant or short-term loans, long-term loans in Nigeria are always secured. The application process also involves a lot of documentation.

In this article, we shall explore what documents you need to apply for long-term loans in Nigeria and how to apply. We shall also consider long-term loan apps in Nigeria.

How to Apply for Long-Term Loans in Nigeria
Frequently Asked Questions
- Final Thoughts
Recommendations

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How to Apply for Long-Term Loans in Nigeria

Long-term loans are offered by several banks and other financial institutions in Nigeria. As earlier stated, the process involves a lot of paperwork.

Thus, you must plan for a smooth application process. We have created a step-by-step guide on how to apply for long-term loans in Nigeria.

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Step I: Decide on Your Service Provider

Long-term loans in Nigeria are mostly offered by commercial banks, mortgage institutions, housing schemes, etc. These organizations offer loans that you can use to finance your business, import goods, purchase machinery, buy your dream home, and more. The repayment term usually ranges from 5 to 10 years.

Choosing your service provider would largely depend on what you need the loan for. If, for instance, you need a long-term loan to buy your dream house, the factors you might want to consider before deciding where to apply are interest rates, flexibility of repayment plan, availability of all the required documents, etc.

Some commercial banks in Nigeria that offer long-term loans are:

First Bank of Nigeria
United Bank of Africa
Standard Chartered Bank of Nigeria
Access Bank
Wema Bank
Polaris Bank, and more

Although the above commercial banks also offer home loans, you might choose to deal directly with a primary mortgage bank to secure your home loan. The major advantage of this is the lower interest rate that primary mortgage banks charge. Some of them include:

Federal Mortgage Bank of Nigeria
Abbey Mortgage Bank
Infinity Trust Mortgage Bank Plc
Platinum Mortgage Bank
FBN Mortgage Bank

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Long-Term Loan Apps in Nigeria

Some microfinance banks in Nigeria also offer long-term loans to Nigerians through their loan apps. Their loans are usually payable within 24 months max. Hence, if you need a longer term to repay your loan, it is advisable to secure the loan at a commercial bank instead.

Long-term loan apps are available for easy download on the Google Play Store, Huawei App Gallery, and Apple Store. You do not need to have an existing account with the parent Microfinance Bank before you can borrow funds from these long-term loan apps. Some include:

Renmoney: Renmoney offers long-term loans up to ₦6,000,000, payable in 24 monthly installments.

FairMoney: FairMoney also grants long-term loans in Nigeria, up to ₦3,000,000 payable in monthly installments and renewable if need be.

Step II: Prepare Your Paperwork

Thoroughly prepare your documents before you apply for long-term loans, as this will facilitate a swift application. Having the appropriate documentation also increases the chances of your loan being approved.

The requirements for long-term loans in Nigeria vary based on your service provider. However, the documents that most providers would request are listed below:

A bank statement detailing your transactions over the past 3–6 months. Some banks may request that it date as far back as 12 months.
A copy of your employment letter, office identification card, or other proof of employment.
A copy of your birth certificate as proof that you are 18 years of age or older. An affidavit may be used in lieu of this.
A completed application form is usually available for download on the service provider’s website or in a branch office.
Proof of residential address in Nigeria (usually, an electricity bill or a water bill will suffice).

Step III: Apply Online or in a Bank Branch

Long-term loan apps in Nigeria usually grant long-term loans through their mobile apps. To apply, download the app from your Google Play Store, Apple Store, or Huawei App Gallery. Login or register and follow the instructions to apply for a loan. You can also upload all your documents online easily.

However, if you are applying through a commercial bank or a mortgage bank, you may have to visit the bank branch to initiate or further the application process.

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Frequently Asked Questions

How do I get a ₦10 million loan for my business in Nigeria?

Central Bank of Nigeria (CBN) provides loans up to ₦10 million for small and medium enterprises (SMEs) and agricultural businesses in Nigeria through the Agric-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS). The interest rate is 5% per annum.

What is the Difference Between a Fixed Interest Rate and a Floating Interest Rate?

A fixed interest rate, as the name implies, remains fixed for the entire repayment period. The mortgagor and the mortgagee agree on a certain sum to be paid on the principal sum, and nothing changes. A floating interest rate, on the other hand, adjusts with the rate of inflation.

What are the documents required for long-term loans in Nigeria?

The major documents needed for long-term loans in Nigeria include a bank statement detailing your transactions over the past 3–12 months, proof of employment, proof of age (18 years or older), a completed application form, and proof of residency in Nigeria.

Final Thoughts

Long-term loans are a good way to go for large amounts of money with long repayment periods. It gives you a leeway to do your business, own your home, etc. without worrying about instant repayment.

With the right financial institution, you can be assured of getting what you want with ease and maximum satisfaction. But how will you know the perfect financial institution for your long-term loans, you may wonder? We have made it easy for you: simply read our articles on the best loan apps in Nigeria and the best banks for home loans in Nigeria.