You may be one of those that say "I can never take a loan!!", "I will never take a loan" until life hits you hard when you least expect, and then you begin to run from pillar to post just to find a way to solve your issues and travails. When it happens this way, some people borrow from other individuals and pay interest of 50% of the borrowed amount monthly. Then pay 100% of the capital back when they have the money complete.

In clearer and more quantitative terms, let's say you are borrowing N100,000. This means you pay N50,000 every month for as long as you cannot pay back the principal, and then when you have the funds to pay, you pay it full and final. If it takes you 6 months to pay back your loan, you are paying an interest of N50,000 x 6 months and then the N100,000 principal amount. Totaling it gives about N400,000 as against an initial principal of N100,000. Isn't that quite outrageous?

And this, my dear Nairalanders, is why you should be in the know/have an awareness of some loan platforms out there that give out loans with minimal interest rates. Yes, I get it, people are scared of approaching their banks for loans because they believe it would require having collateral like landed properties with C of Os and the likes.

Well, professional advice for free? You don't need all of those to access a loan. In fact, with recent CBN policies, banks are now on their toes and are out with different enticing loan products for customers, both old and new. There even seems to be an interest rate competition between the banks on whose is the lowest.

All you need is to either be a business owner and have a good turnover monthly or be a salary earner. Any of these two, and you are good to go. But!! Do not have your hopes too high. You can't be doing a monthly turnover of N20k and expect to get a loan of N20 Million. Mbanu!! It doesn't work like that.

Whatever, you have as your monthly turnover, multiply it by 50% or 40%. So plus, or minus, that is what you can get as a loan. As a salary earner, what you get is somewhat different but also dependent on the offerings your bank/loan platform gives. You may be able to get up to 50% or 75% of your annual salary to pay back in two to three years, or 200% of your monthly salary to pay back in 3 or 6 months.

Why Do People Take Loans?

I am quite sure someone would ask this question in the comments, so I guess I should address it before it comes. So, let me say this; not everyone is comfortable/extremely comfortable in financial terms to live day to day on his or her incomes. When you now add a wife and children to the mix, well, I am sure you know better than I do.

Thus, to successfully paddle through the everyday turbulent waters of life, there may be a need to take out a loan. People also take out loans to begin or complete their building projects and stop paying rent. When canceled, that rent can serve as part of the money to be used as repayment for the loan.

People also take out loans for school fees, health reasons, and for business purposes. I mean, come on, some of the wealthy people we know are wealthier today because they took a loan and used it for business. They then get back over 200% of the loan taken as profit from the proceeds of the business. The Dangote we know financed some of his business projects with loans and has been reaping the benefits.

So, my recommendation is this; take out a loan, but make sure the loan is going to yield returns in terms of profit made or expenses canceled. That way, you can quickly repay your loan, and have enough to hold your end of the line without sinking.

In the next two parts of this series, I will be reviewing two loan platforms where you can apply for a stress-free loan and pay back monthly.

CHALLENGE: Tell me in your comments, the two loan platforms I would be reviewing in my next two posts. The first two correct answers would get N5,000 each from me. Keep calm and expect Part 2 on Saturday!!

Neduzze5 (Curt Writer) is a versatile content writer who has written for many clients on Nairaland and away from this platform. He writes on general interests, product reviews, finance, sports, travel, music, novels, and others. Need a writing job done? Contact details in my signature.

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Thanks for the information. However, for someone who has pickets of loans here and there, is there any opportunity for loan consolidation from a source and restructure such loans for you to access better loan especially if the person has very bankable and risk proof business ideas? Thank you.

Thanks,i'm a peasant farmer based in Ibadan. Pls which loan app can I approach now? Update me on whatsapp +2349034612092 or unclemoringa@gmail.com