Acquiring Car Loans in Nigeria: Companies and Options
The desire to own a personal car is a common dream among Nigerian workers. This aspiration is particularly prevalent among salary earners, regardless of whether their income is sufficient to afford a car or not. Owning a car is often prioritized over housing, as it carries significant prestige in society.
However, due to financial constraints, many people are unable to purchase a car outright and must explore loan options. In Nigeria, loans are not limited to monetary assistance alone; asset loans are also available. With asset loans, an asset is provided as collateral, and the borrower repays the loan amount along with interest over a specified repayment term.
Car loans operate similarly. Borrowers receive a car of their choice as a loan and repay the value of the car in Nigerian Naira, along with interest. This article aims to provide information on obtaining car loans in Nigeria and the companies that offer such loans.
List of Companies Providing Car Loans in Nigeria:
- First Bank of Nigeria: First Bank offers a special Auto Car Loan designed to assist both businesses and individuals, including salary earners, in purchasing their dream cars. The maximum amount obtainable for the First Bank Auto Car Loan is ₦15 million, repayable within 48 months. The interest rate for this loan is 22%.
- Cars45: Cars45 is a digital marketplace that facilitates the sale of used cars. They also provide a loan option exclusively for individuals with a reliable source of income. The maximum loan term available is 18 months, and interest rates range from 28% to 48%, depending on the vehicle being purchased.
- Access Bank of Nigeria: Access Bank has introduced a loan product called Vehicle Finance to help consumers easily and affordably acquire their desired cars. To apply for this loan, visit Access Bank’s official website. Only vehicles sold by the bank’s authorized dealers are eligible for financing, and the maximum loan term is 48 months.
- First City Monument Bank (FCMB): FCMB offers an auto car loan product tailored to consumers. This loan allows FCMB customers to conveniently pay for their dream cars in installments over time. Loan amounts range from ₦500,000 to ₦10 million, and the repayment term varies from 12 to 60 months, depending on the borrowed amount and car type.
- CreditVille: CreditVille is a prominent online lending platform in Nigeria that offers various loan products to meet customers’ diverse needs. One of their offerings is the Auto Loan, specifically designed to help individuals who lack sufficient funds to purchase their desired cars. To apply for this loan, visit their official website and fill out the online application form. If approved, an agent will contact you. Please note that this loan is only available for individuals, not businesses.
- United Bank of Africa (UBA): UBA provides an auto car loan option for its customers. The UBA auto loan is designed to help customers either upgrade their existing vehicle to a higher model or purchase a brand-new car. The maximum loan amount is ₦15 million, and the maximum loan term is 48 months.
Conclusion: If you are considering purchasing a car through a loan arrangement, it is advisable to consider the reputable and reliable institutions listed above. These companies have been certified to provide credible car loan services in Nigeria.