Car loan in Nigeria: companies and banks that give car loan

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Many people thought all the car ploughing our road in Nigeria is bought no, should I tell you the truth over 50% of these car is bought on loan and I’m sure that is why you are here, to know the companies giving out car loan in Nigeria.

The only problem is that the number of loan companies that offer car loan in Nigeria is small compares to America and UK in fact some are out there to milk you dry with extra charges and high in interest rate.

This is why we research and come out with reliable companies that can give you car loan in Nigeria with less interest rate. These loan companies are professional and some of them are bank you have account with.

Before getting a car loan in Nigeria

There are many things that surround car loan, it is not like business or personal loan you need to get some document ready

Income

Before applying for a car loan you need to have a job you are engage in, no bank or loan companies will give you loan without verifying your income source, do not forget they are in it for business and they do not want to run into loss.

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You will also present your income statement to further verification, the income statement will show the amount of money coming in into your account and the amount of money going out, though some do not ask for this they are rare and you should even be wary of them.

Though these companies give car loan to business but the chance is low they prefer someone working in a recognize company and this is because they can quickly contact your employer if anything goes wrong.

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No 100% car loan

Unlike personal loan and business loan where all the amount you requested for are disbursed, with car loan you are require to pay at least 30% of the amount of the car you want to buy and also you must know the car before you submit your application.

You might be ask to pay for the insurance fee and other charges surrounding the car.

Payback period

One of the advantages of car loan is that it has a long payback period which can be up to 5 years according to your specification.

Companies and banks that give car loan in Nigeria

Car 45

Car45 is a market place that connect buyer of used car to seller. They also offer car loan to buyer who have proven source of income such as salary earner. Their loan interest rate depends on the car you want to buy but it can be as high as 48% and the payback period is 18 months.

First Bank of Nigeria car loan

First bank give out one of the best car loan in Nigeria with interest rate of 22% and a payback period of 48 months. You can loan up to #15 million naira with first bank and it us easy compare to car 45 but you need to have account with them at least for 6 months before applying for the loan.

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Access bank group car loan

Access bank also give car loan through one of their product called vehicle finance, like first bank their loan payback period is 48 months and their interest rate can be as high as 30% but one thig about access car loan is that you need to buy from their accredited seller, you can check their website for more on car loan.

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Creditville

Creditville is loan company that give out personal and business loan, they also give out car loan to their customer at a good interest rate and long payback period. With the way they treat their customer collecting, it can be say that they will also do well with car loan, to apply head over to their platforms.

Uba auto loan

Uba is another bank in Nigeria that give car loan. They give out up to #15 million to individual to purchase a car or upgrade but as usual you need to cover at least 40% of the cost of the car, their payback period can be as long as 48 months and their interest rate is between 20% to 30% depending on the amount of loan request for.

Advantage of car loan in Nigeria

It is easy to buy car or upgrade

You don’t have to save forever before you purchase a car or upgrade it, if you can cover 30% of the car a you want to buy you will have your car and pay back over five years, isn’t that good.

You will have money to buy food

Just to be able to buy car some will use all their saving which will later affect them, I know a friend who empty all his account just to buy a car, he later turn to beggar calling people to borrow money so as to buy food stuff, with car loan you can have a peace of mind and not brake your bank.

Good for business

If you are an entrepreneur and need vehicle for your business, instead of getting a business loan that have a short payback period you can approach one of the organization above and have up to five years payback period.

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Disadvantages of car loan in Nigeria

Your car can be taken.

Like any loan company in Nigeria that collect additional interest rate when you default, it is also the same with car loan and if you further default your car can be taken from you.

Interest rate

To say the fact interest rate on car loan is much, the only thing that helps out is the payback period so try as much as possible to get loan from companies that offer at least 3 years payback period.

Concussion

Above are the loan companies that offer car loan in Nigeria, I will advise you to take loan you can pay back because if you default they can take your car away.

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