Money is important and while some may have enough of it, most generally claim they don’t have enough – which may be true. When one is low on cash and need funds to tide till payday, a quick online loan may be the next best solution.
Thankfully, there are quite a number of growing online lenders in Nigeria. Big names like Page Financials and others are evolving in their operations.
Usually the process of getting these instant loans require some documents to be made available. The loans are actually high risk loans since they do not require collateral or guarantors. This explains why most of these lenders give instant or quick online loans to only salary earners. Business owners may feel at a loss, but we do have to understand these lenders, no one wants to have to worry about repayment issues and most entrepreneurs are known to be notorious for failing to meet repayment deadlines. Another reason may be because of logistics or the type of license the lender has but that is a topic for another day.
Our focus today is to list out the items or documents required by these online instant loan lenders and what those documents are used for.
Let’s dive in.
- Your BVN number
Don’t be scared or think you’re about to be duped. Most of the popular lenders you know are all registered and licensed by the relevant authorities. Your BVN is needed for KYC (Know Your Customer) which is a stipulation by CBN on any financial service operator. Your BVN also provides an easy means of gathering data without having to ask you to submit details like name, address, email, date of birth etc. Submit your BVN when requested but first verify that you’re doing so with a recognized financial service provider so you don’t end up a victim of internet fraud.
- Valid Form Of Identification
As with all financial transaction registrations, a valid form of identification is required. This can be your national ID card, INEC voter’s card, drivers’ license or International passport. This is usually uploaded on the site so ensure to have a soft copy on your device ready. The ID is exactly used for what is stated; identification.
- Statement Of Salary Account
Most lenders require applicants to submit bank statement of their salary accounts over a specific period – usually 6 months. The reason for this is to certify that the applicant can repay the loan since collateral or guarantors are not required. High risk loans are very volatile and easy to default on, that is why lenders mostly give salary earners and in so doing require to have evidence of consistent payment. The best way to guarantee you pay back your loans is if the lenders can has access to a consistently funded account hence a salary account.
In order to guarantee successful loan repayment, most lenders would require access to a consistently funded salary account on which a direct debit mandate is instructed via a third party such as Remita or Paystack.
- Passport Photograph
It is standard practice to submit a passport when creating an account with a financial institution. Again, the passport has to be available on your device for uploading to the lender’s site and is used for identification purposes.
- Letter of Employment
Closely related to the salary account statement, most lenders require applicants to upload evidence of their employment status. The best evidence is usually an employment letter or a work ID.
- Work ID Card
This makes the last item. A work ID is another means of verifying that applicants are salary earners who can repay the loan they take.
Contrary to what many may think, most online loan providers are willing and ready to offer loans to whoever qualifies. They may have their reasons for not giving loans to business owners, retirees, pensioners or uniformed person which is best known to them and for their business processes. Yours is to ensure you confirm that you are a good fit and ensure you have all it takes to apply and receive the loan. Lastly ensure to respect their decision and accept it in good faith because they have the best for you in mind more than you may imagine.
When applying for a loan, the lender is not only interested in giving you money, they are also very keen on ensuring that you have means to repay as this would affect your credit score which is an invaluable piece of information for subsequent loan applications, travelling and other financial transactions in country and outside the country. An applicant who earns N50, 000 and wants a loan of N400, 000 may not be able to repay because after monthly repayment deductions of say N10, 000, would the person be able to live off on N40, 000 in today’s harsh economy? These are the realities the lender has and considers before deciding to grant or decline a loan application.
Do you need a loan and can get all these documents ready for the application process? Why not start the loan application process right now. Get in touch with any of the quick online loan providers.