₦airaland Forum

LoanShark:
How many of your family members in Nigeria have you ever lent 500K and they paid you back?

I guess everyone's family is not the same. I borrowed from my sister and I paid her back

CodeTemplarr:
Rate too high. Why not try commercial banks with 24%-60% PA ?

No commercial bank in Nigeria will even waste time processing a loan of just 500K.

Most of the commercial banks that even developed loan products for clients who needed Payday loans and other loans of smaller amounts have even stopped because they realised the default rate for that segment is so high therefore it is not so profitable for them to give such loans.

If you're not taking a loan of at least 50million which will be fully secured with a collateral I doubt if any commercial bank in Nigeria will take you serious

lordm:
I guess everyone's family is not the same. I borrowed from my sister and I paid her back

I did not ask if you borrowed from a family member and paid the person back, what I asked is if you lent to them and they paid you back. They are two very different things!

samwash:
The internet is too much,you are paying back double of the initial principal of the loan.
Why not go for MFB loan, those ones are cheaper compare to this one.

Before a MFB will even consider giving him a loan he has to operate a bank account with them for at least 6 months so they can monitor his monthly turnover to be sure he has the cashlow to repay the loan he is seeking.

You can't just walk into a MFB out of the blues and request a loan then think they will give it to you, it does not work that way!

LoanShark:
I did not ask if you borrowed from a family member and paid the person back, what I asked is if you lent to them and they paid you back. They are two very different things!

yes, they payback ehn I give them. It's about trust

The loan app make it mandatory to pay back in installments
The loan & the interest is spread within 12month you are not even given 2-3months before the payment commence
You start a compustry payment at the end of the first month

LoanShark:
If you do take the loan you have to make sure you are extremely disciplined and frugal with the money.

The reason why most people find it difficult to repay such loan is because when they get the money the first thing they do is to start flexing or doing giveaways - that is not the purpose for the loan.

You have to look at a loan as a seed which you need to plant and nurture so as to enjoy the yields in future after repaying the loan with part of the early yields.

After receiving the loan you should open a new bank account then after 3 months you pretend you have started repaying the loan by transferring the sum of 120K to this new bank account.

Do not wait until the end of the tenor of the loan before you start running around to put the money together!

binary123:
Thanks you all.As it stands now, my business is not growing because of the remote street were my house is located
The money I'm making is only for feeding because of low patronage, how long should I continue like this that is the reason I am considering taking the loan which is the only alternative
I'm good at the business that why I need to get a shop at a densely populated area, my thinking about the interest alone scary, but I don't have an alternative,I may risks it

It is obvious God led me to see this thread. I don't even come to this category but somehow I just clicked on the business category.

I am in the best position to give you the advice you need. And to make it very short "DONT TAKE THAT LOAN"

If you take this loan you will be poorer unless a miracle happens. I have receipts.

Let me explain, if you take this 500k, it will pay rent plus maybe a small change remaining. Now this money won't even stay in your hand and you will start paying next month.

Why they are called loan sharks is because of the short duration and high interest.

Now let me give you my own experience. I am a blogger and youtuber. So last year Google did the unthinkable and deranked my 6yrs old blog which accounted for 70% of my income.

Now I was left with my youtube channel. I believed buying new gadgets will increase views on the channel. So I took a 1m loan from Fairmoney to pay 1.3m in 3 months.

I had some success on my plan but I was paying 400k which was more than my monthly earnings then.

Do you know what happened? When my income drops, I pay this loan and I am left with nothing to survive the month.

What did you think happened?

I had to collect another loan to eat and pay bills.

Those ones also want their money by month end. I worked so hard but income didn't increase. Before I know it I was owing about 5 loan apps.

To cut the story short, I sold my assets to offload this loans because I had no peace and couldn't live well.

The bottom line, I ended up paying 2.2m interest within 12 months.

If I didn't take that loan, I would have been 2.2m richer.

That loan is designed to kill you. Nothing more Nothing less.

What I will advice, it is better to sell an asset (if you have one) then use the money to support your business.

If you are banking on getting a shop in a better location, you may or may not succeed as you expect. And you will have loan people to worry about.

Wow.they say,A night with the master is more profitable than years of labouring, thanks, It's like you just make me pip through what is awaiting me in future,I just learned a lot from your experience. I m just tired of stagnation.
God, what is the way out.

skultrick:
It is obvious God led me to see this thread. I don't even come to this category but somehow I just clicked on the business category.

I am in the best position to give you the advice you need. And to make it very short "DONT TAKE THAT LOAN"

If you take this loan you will be poorer unless a miracle happens. I have receipts.

Let me explain, if you take this 500k, it will pay rent plus maybe a small change remaining. Now this money won't even stay in your hand and you will start paying next month.

Why they are called loan sharks is because of the short duration and high interest.

Now let me give you my own experience. I am a blogger and youtuber. So last year Google did the unthinkable and deranked my 6yrs old blog which accounted for 70% of my income.

Now I was left with my youtube channel. I believed buying new gadgets will increase views on the channel. So I took a 1m loan from Fairmoney to pay 1.3m in 3 months.

I had some success on my plan but I was paying 400k which was more than my monthly earnings then.

Do you know what happened? When my income drops, I pay this loan and I am left with nothing to survive the month.

What did you think happened?

I had to collect another loan to eat and pay bills.

Those ones also want their money by month end. I worked so hard but income didn't increase. Before I know it I was owing about 5 loan apps.

To cut the story short, I sold my assets to offload this loans because I had no peace and couldn't live well.

The bottom line, I ended up paying 2.2m interest within 12 months.

If I didn't take that loan, I would have been 2.2m richer.

That loan is designed to kill you. Nothing more Nothing less.

What I will advice, it is better to sell an asset (if you have one) then use the money to support your business.

If you are banking on getting a shop in a better location, you may or may not succeed as you expect. And you will have loan people to worry about.

binary123:
Wow.they say,A night with the master is more profitable than years of labouring, thanks, It's like you just make me pip through what is awaiting me in future,I just learned a lot from your experience. I m just tired of stagnation.
God, what is the way out.

No too reason the matter, God will always make a way.

What I will suggest is print flyers and share to houses around and even far away. Give them discount for first time trial. Offer them home delivery. If the house is far, add small charge. You will surely get new customers this ways.

I repeat DONT TAKE THAT LOAN.

The way the loan is designed, you no go fit breath and you will start paying ASAP. It will make the situation worse because you will need more loans to run your daily life.

I never believed I will default but I did.

My biggest and only regret last year was taking that loan. It snowballed and I began thinking how it got so bad. It is simple math.

When doing the math don't be optimistic. Only be realistic.

binary123:
I am into laundry /dry-cleaning business,and I'm operating from my one bedroom apartment,
I have been trying to save money to rent a shop and also to buy a generator.but it has not being easy
Most times I do borrow money from loan app and I have mentain a good record, my loan limit has increased to N500,000 the interest is N550,000,
Total repayment of N1,050,00 (one million fifty thousand) to be paid in instorment of one year I'm seriously considering taking the loan
.pls I need your advice is this a fair deal, I really need the money.

Don't try it. How can you take a loan to repay over 100% interest in a year. Don't say you weren't warned.

LoanShark:
Before a MFB will even consider giving him a loan he has to operate a bank account with them for at least 6 months so they can monitor his monthly turnover to be sure he has the cashlow to repay the loan he is seeking.

You can't just walk into a MFB out of the blues and request a loan then think they will give it to you, it does not work that way!

That is where pple are getting it wrong, if you are telling me that they wouldn't give him up to 500k at first Chance,I might reason with you, if he already has an existing business that is worth double of 500k in stock and have a very good cash flow, they will consider him. It is not necessary that he has to build credit finance with them for six months.
He can apply today, if he meet their requirements, they fund him tomorrow.
He just have to start from somewhere.

No try am oooooo, they're all scammer excluding fairmony....if you don't pay them on time they will start calling all your contacts and also threatening you too and also interest rate is high

binary123:
Please, anyone with similar experience with loan app should reply
I need advice before I take a dive.

binary123:
I am into laundry /dry-cleaning business,and I'm operating from my one bedroom apartment,
I have been trying to save money to rent a shop and also to buy a generator.but it has not being easy
Most times I do borrow money from loan app and I have mentain a good record, my loan limit has increased to N500,000 the interest is N550,000,
Total repayment of N1,050,00 (one million fifty thousand) to be paid in instorment of one year I'm seriously considering taking the loan
.pls I need your advice is this a fair deal, I really need the money.

No, na bard deal! If you collect that thing we you dey call loan, you be snave, das all!

For ninja, we no no say when something too much say he no good. If you collect that thing wey you dey call loan, you go suffer tire for another person! While making 1000 daily, you have to put more effort to make another 1500 daily for your loan! That thing is like clazy!

CodeTemplarr:
Rate too high. Why not try commercial banks with 24%-60% PA ?

Lol, commercial Bank refuse! Dem no dey give civilian wey Dem no sabi! Dem get fear of deft!

I din tire going to and fro for them.

lordm:
Borrow from family members

If there were anything call family loan we won't be out seeking for a way out!

Glad, clean ya eyes. Family wey dey potopoto, whose child dey struggle to make it no dey gib loan!

Nnaemiemax:
The interest rate is too high and could strain your finances if you don’t have consistent monthly cash flow to service the loan.

Consider negotiating a 6-month repayment plan for a smaller loan amount to ease the payment burden and reduce the risk of a cash crunch. Alternatively, take a lower loan say ₦300k, and cover the remaining 200k through personal equity.

You have an ekonomik mentality. Oil dey ya head.

But the slavery to stardom is halfed. It's still besmirk with sweating for another person

What a world, were, after knowing that you will rail, cause and abuse a defaulter, you cannot even put a small interest on a loan but you double the loan with excess interest? Why?

What's happening to our humanity?

binary123:
Yes I'm really thinking about it,thoug my rent is not a problem for now the rent is cheap and I have a room mate with over 1yr rent paid

Wh eh eh eh eh... You have a loom mate? Ya say?

Do not allow ya loom mate who is so dear to you to become a debil who will make you lipe become yeye!

To be warned is to be told. You are preparing hot water that will pour on ya body.

You even cohabitate with a special person? Wonderpul thing!

Stay away from your urge for such exurbitant loan! Your loom mate will bring you down!

Dnockeror333:
Wh eh eh eh eh... You have a loom mate? Ya say?

Do not allow ya loom mate who is so dear to you to become a debil who will make you lipe become yeye!

To be warned is to be told. You are preparing hot water that will pour on ya body.

You even cohabitate with a special person? Wonderpul thing!

Stay away from your urge for such exurbitant loan! Your loom mate will bring you down!

thanks you bro, may be you don't understand who room mate is,I'm co-habitting with a male friend, we paid the house rent together, how will he brings me down
I non understand this advice oooo.

samwash:
That is where pple are getting it wrong, if you are telling me that they wouldn't give him up to 500k at first Chance,I might reason with you, if he already has an existing business that is worth double of 500k in stock and have a very good cash flow, they will consider him. It is not necessary that he has to build credit finance with them for six months.
He can apply today, if he meet their requirements, they fund him tomorrow.
He just have to start from somewhere.

this is an unregistered business operating from home without tangible assets,l need the loan for improvement.

binary123:
Thanks you all.As it stands now, my business is not growing because of the remote street were my house is located
The money I'm making is only for feeding because of low patronage, how long should I continue like this that is the reason I am considering taking the loan which is the only alternative
I'm good at the business that why I need to get a shop at a densely populated area, my thinking about the interest alone scary, but I don't have an alternative,I may risks it

Don't borrow for laundry in a new location.

Borrow the money for something more lucrative.

Don't be in a hurry to pay back in 12 months.

Plan to pay back in 3 years.

Make up ur mind to default on the loan and u will have peace

Dnockeror333:
You have an ekonomik mentality. Oil dey ya head.

But the slavery to stardom is halfed. It's still besmirk with sweating for another person

What a world, were, after knowing that you will rail, cause and abuse a defaulter, you cannot even put a small interest on a loan but you double the loan with excess interest? Why?

What's happening to our humanity?

"It's truly disheartening. It's clear that the OP's business is growing and now requires strategic financial support to scale effectively.

What is hard for Loan companies to operate an assessment process where a business' financial position is evaluated before determining the appropriate loan amount and interest rate. Sustainable economic growth relies heavily on a strong SME and MSME ecosystem."

samwash:
That is where pple are getting it wrong, if you are telling me that they wouldn't give him up to 500k at first Chance,I might reason with you, if he already has an existing business that is worth double of 500k in stock and have a very good cash flow, they will consider him. It is not necessary that he has to build credit finance with them for six months.
He can apply today, if he meet their requirements, they fund him tomorrow.
He just have to start from somewhere.

You can't just give a loan of a high amount to a new client without first confirming that he actually has capacity to repay the loan he is asking for.

If you start dishing out loans indiscriminately to new clients trust me your bank will fold up within a short time.

Some of those you think are new clients are actually scammers and they are ready to go and rent stock of say 10 million and invite your bank to come and inspect it in their office so that they can get a loan from you, immediately after you disburse the loan they will disappear with the money and you will have to bear the loss.

In the same vein some may actually be genuine businesses but if you make the mistake of giving them a loan that is above their current capacity they will divert the funds to unproductive ventures such as hosting parties or marrying a new wife or other personal consumption which will make it impossible for them to repay the loan when it becomes due.

These are things that cannot be hidden in a bank statement, once an experienced person examines the bank statement he will be able to tell whether or not there is business activity going on and the scope or size of the transactions.

It is this information that the bank will use to determine whether or not there is merit in the loan request by the business owner

ublight:
Don't borrow for laundry in a new location.

Borrow the money for something more lucrative.

Don't be in a hurry to pay back in 12 months.

Plan to pay back in 3 years.

Make up ur mind to default on the loan and u will have peace

they don't have plans for 3yr, maximum repayment schedule 1yr

binary123:
The loan app make it mandatory to pay back in installments
The loan & the interest is spread within 12month you are not even given 2-3months before the payment commence
You start a compustry payment at the end of the first month

If the structure of the loan is such that requires you to make a monthly repayment starting from the month of disbursement then that loan is not suitable for your business and I will not advise you to take it because you will find it hard to cope.

The type of loan your business needs is the type that will give you a grace period or moratorium so that you can adequately maximise usage of the funds.

Unfortunately this type of loan or overdraft can only be got from a bank or MFB and you will likely need to present a collateral or pledge the personal guarantee of the owners of the business if they are high net worth individuals before you can get it.

An alternative would be for you to seek funds from angel investors or family members

binary123:
they don't have plans for 3yr, maximum repayment schedule 1yr

U don't understand English.

I can tell that u won't do well in the business already

ublight:
U don't understand English.

I can tell that u won't do well in the business already

Thanks.i understand you very well, just that your advice

LoanShark:
You can't just give a loan of a high amount to a new client without first confirming that he actually has capacity to repay the loan he is asking for.

If you start dishing out loans indiscriminately to new clients trust me your bank will fold up within a short time.

Some of those you think are new clients are actually scammers and they are ready to go and rent stock of say 10 million and invite your bank to come and inspect it in their office so that they can get a loan from you, immediately after you disburse the loan they will disappear with the money and you will have to bear the loss.

In the same vein some may actually be genuine businesses but if you make the mistake of giving them a loan that is above their current capacity they will divert the funds to unproductive ventures such as hosting parties or marrying a new wife or other personal consumption which will make it impossible for them to repay the loan when it becomes due.

These are things that cannot be hidden in a bank statement, once an experienced person examines the bank statement he will be able to tell whether or not there is business activity going on and the scope or size of the transactions.

It is this information that the bank will use to determine whether or not there is merit in the loan request by the business owner

I concur with all the points you have highlighted.
Let him go and try his luck.