Paydayloanskentucky.org – How much loan can I get from bank? If such question ever crosses your mind, you might be in the process of considering borrowing money from a bank. In Nigeria, each bank has its own regulations, including the amount of loan someone can take.
Some banks might offer a higher amount of cash than others. However, as important as it is, it shouldn’t be your only factor in decision-making when obtaining a loan.
This time, we’ll talk about this subject and provide you with all the information about the maximum amount of loan you can take. We’ll highlight the popular lenders in Nigeria such as Jaiz, First Bank, UBA, Access, and Kuda.
Why You Need to Ask about ‘How Much Loan Can I Get from Bank?’
Asking about how much money you can borrow from a bank is not only normal, but expected. People who need a loan need it for a specific reason. Some people might want to use it to buy a car, while others might want to set up a new shop for their business.
When we go to the bank, the bank will also ask us how much money we need and what the purpose of the borrowing is.
However, as written before, each bank has its own regulations, including the way they decide how much they’ll give a loan. You can’t just go straight to the nearest bank and ask for all the money you need. It’s better to gather information about each bank first, then choose the one that matches your needs.
How Much Loan Can I Get from Bank in Nigeria 2023?
Below are some of the most popular lending companies in Nigeria. Select the one that provides a loan amount sufficient to cover your need.
1. First Bank
First Bank is a multinational commercial banking group operating in 10 countries, including Nigeria. One of the most interesting products of First Bank is FirstCredit. You don’t need to provide documentation or collateral, and you can get up to N300,000.
2. UBA Bank
UBA is an abbreviation for United Bank for Africa. As the name implies, it’s a bank that operates in at least 20 African countries. UBA offers various products for different demographics. One of the products, the personal loan, will let you borrow as much as N30 million.
3. Jaiz Bank
If you are a devout Muslim and are wondering how much loan I can get from a bank, you should think about Jaiz Bank. Jaiz Bank is an Islamic non-interest bank owned by more than 25,000 shareholders. Jaiz Bank offers microbusiness loans of up to N500,000 and SME loans of up to N50,000,000.
4. Access Bank
Access Bank is another multinational financial company in Nigeria. They provide both an app and mobile service. You can borrow as much as N300,000, or 75% of your net annual income. For business, they will allow up to 50% of the monthly average turnover.
5. Kuda
Kuda is an app built by Kuda Microfinance Bank. It’s a fintech company operating in the United Kingdom and Nigeria. The most money you can borrow from Kuda is N150,000. You will be able to increase the limit in the future, but as of now, the team is still working on it.
| No | Lenders | Max Loan Amount |
|---|---|---|
| 1 | First Bank | N300,000 |
| 2 | UBA | N30 million |
| 3 | Jaiz | N500,000 for Micro Business and N50,000,000 for SME's. |
| 4 | Access Bank | N300,000 |
| 5 | Kuda | N150,000 |
You Shouldn’t Only Ask about How Much Loan Can I Get from Bank
While it’s important to ask about the maximum loan you can take, it’s also important to think about other factors, such as:
- The interest rates. You don’t want to pay an unreasonable interest rate. For banks, the average interest rate is 12.2% per year.
- The repayment periods. Make sure to borrow money from a lender that will give you enough time to repay it.
- If you don’t have any assets, your only choice is an unsecured loan.
- The credibility of the bank. Beware of the shady fintech companies.
- Other fees and charges. For those who don’t want to borrow a large amount of money, it’s better to avoid the unnecessary and expensive fees.
How Much Loan Can I Get from Bank vs Other Lenders?
There are different types of lenders in Nigeria. The profit-driven lenders are the typical banks, mortgage lenders, and payday lenders. Among them, payday loan lenders are the ones that provide the least amount of money.
Each bank, on the other hand, has a different set of minimum and maximum loan amounts. For those looking to borrow a large sum of money, big and multinational private banks are the best options. But it’s equally crucial to realize that the maximum amount a bank can lend depends on your financial situation.
If you are a successful entrepreneur, the banks will likely trust you with a large sum of money. However, if you are still struggling financially, the bank will not only give you the small loan; in fact, they barely trust you in the first place.
Eventually, while it’s important to ask about how much loan amount you can obtain from a bank, you also need to understand how the bank might think. It’s better to do your own research first, then choose the lender that suits your needs.
