Key Requirements to Access Loans in Nigeria

CBN Credit Guarantee Fund
CBN Credit Guarantee Fund

When applying for an online loan these days, most companies will ensure that they verify the applicant before proceeding and funding their loan.

This is a standard process to ensure that the loan is actually for that borrower and allows them to ask any follow up questions to make sure that the loan is appropriate for them.

In this guide we will discuss a few of the key requirements to access loans in Nigeria.

Key requirements to access loans in Nigeria

  • Name
  • DOB
  • Address
  • Employment status
  • Income
  • Expenses
  • Bank details

Here are some of the follow up questions you can expect to come across after the initial basic queries.


It is essential that the lender asks the individual to verify their identity. This is commonly:

  • Can you please confirm your BVN?
  • Can you please confirm your address?
  • Can you please confirm your telephone number?

The lender should be able to cross reference information used in the application form. This is a quick check only lasting a few seconds, but the rest of the confirmation cannot proceed with it.

Employment and income

Borrowers usually need to have a current employment and earning a certain amount per month to be eligible for a guarantor loan – this is because this is how they are expected to repay their loan.

As the applicant will fill in this information on the online form, it is important for moneylender to cross-check this. It is common to ask for a borrower bank account statement to back up their income and employment.

A recent bank account statement from the last month shows that they are likely to still be employed (unless they have left their job, further proof may be required) and it confirms their monthly take home.

This information is key to determine how much the individual can borrow – this is because the lender may have to adjust the amount requested so that they can afford monthly repayments without falling into arrears.

Sometimes you may find that the person has no job at all or their income is a fraction of what they have stated. This helps the lender when making their final decision, which could result in not proceeding with the application.

Other times, if their bank details have been flagged, the moneylender may request a copy of a bank statement to confirm any bank details and income too. Sometimes, the lender may spot other information on the bank statement that affects the chances of approval. Seeing things like debt management, government benefits and gambling are sometimes signals that suggest the lender does not want to be involved.

Purpose and terms of the loan

Moneylenders will commonly ask what is the purpose of the loan. Guarantor loans are commonly used for lifestyle purposes including buying new cars, paying for weddings, school fees or holiday. Other short term  loans are used for more emergency purposes such as car repairs, urgent business expenses and medical bills.

It is necessary to understand the purpose of the loan because high cost interest is not used for wanton spending such as shopping for brand name consumer items – it should go towards a real purpose.

The terms of the loan are also very important, just to confirm things like:

  • loan amount
  • loan duration
  • interest rates and fees charged

Whilst the customer has access to a formal loan agreement, it is always good to revise this information and check this over the phone.

Guarantor information

A key point when it comes to guarantor loans is that you have the extra person involved in the loan, the guarantor. The lender will always make a point of speaking to the guarantor as well. This individual (usually a close friend or family member) needs to understand their responsibilities.

Your guarantor who could be a family member will not be approached immediately to repay if you miss a single repayment. The moneylender will always contact the borrower on several times and offer alternative payment plans before asking the guarantor to pay the bill.

If the loan is successfully funded within 2 days of applying, the money is sent to the guarantor’s account first. This is because the lender wants peace of mind knowing that the huge loan, potentially in the millions of Naira, is going to a person with a good credit score.