A personal loan enables you to borrow a predetermined amount of money from a lender. It comes with a fixed interest rate and fixed term rate as well as a fixed monthly payment. The fixed monthly payments make it easier for you to set up a budget to ensure you can repay your loan. Personal loans are usually unsecured, as they do not require collateral and use your credit score and credit history to determine if you qualify. Thus, if you do not repay your credit score will plummet and your loan could go into default.
Few Nigerians have the cash they need on hand to pay for big-ticket items upfront. Previously, it has been difficult to access loans without collateral or borrowing from family and friends, which can be quite embarrassing. However, lenders such as MoniNow have stepped in to fill this opening and offer loans at affordable rates.
Thus, personal loans are a great way to bridge the financial gap. Here are some of the reasons why you might take out a personal loan and where you can find one.
Emergency Expenses
Sometimes we experience an unexpected turn of events. Whether it is a written-off car or trying to make ends meet during a worldwide pandemic, there are times when we all need some extra cash. Unfortunately, many Nigerians cannot afford to save for these emergencies, and you may need a personal loan to help you cover these expenses.
If you need money right away to cover medical bills, an emergency cost or something else that needs immediate attention, you can take out a personal loan. If you suddenly need to buy a new washing machine or laptop but do not have the funds on hand, a personal loan can provide relief. We provide online applications that allow you to learn whether you are approved in minutes. You could receive funding that day or within a few business days. You can use a personal loan to cover emergencies like:
- Medical bills
- Funeral expenses
- A sudden car repair
- An unexpected appliance/ equipment purchase
Bill Payments
At times, there simply is not enough money to go around. If you have tightened the purse strings and you still cannot make ends meet then you might need to turn to a personal loan just to pay the bills.
Education in this country can be very expensive. It is common for students or parents to take on some sort of student loan to help cover school costs. In certain instances, a personal loan can be a good option to help pay for school-related expenses.
Whether it is a utility, cable or child-care bill, once you qualify for a personal loan, you can use it to fulfil this need.
Rent, Home Repair or Renovations
Many people can use a personal loan to pay their rent, upgrade their home or complete necessary repairs, like fixing the plumbing or redoing the electrical wiring. In addition, a personal loan is a good fit for people who do not have equity in their homes.
Whether you are looking to furnish your home or just upgrade parts of your home, a personal loan gives you the option to pay for home repairs with an instalment plan.
Spending a thousand naira per month is probably more realistic for many Nigerians than dropping one million naira at once on home upgrades. However, keep in mind that you pay interest to use a personal loan and the renovations will end up costing more in the long run.
Major Life Change
Moving, divorce, career changes, buying a new vehicle etc. come with emotional and financial costs. As much as possible, plan for these transitions, but if you are in a pinch and need money to hold you over, you may be able to get a personal loan in a matter of days.
If you are moving, you may need extra cash to pay for moving costs. Moving far away means covering the cost of packing up your belongings, possibly hiring movers and transporting your things to your new location. A personal loan also can help fund the process of finding a new place to live.
Funding Your Side Hustle
Many people have side hustles in addition to their 9 to 5 jobs. If you are interested in starting one or growing your current side hustle, you may need cash to fund it. However, if you do not have the necessary funds, you can get a personal loan in as little as 24 hours.
This is much easier than getting a business loan and allows you to grow your business. Personal loans do not require the collateral required for business loans. All you need is a proven source of income, which can come from your current 9 to 5.
Personal loans can be a great option because you can use them for virtually anything. But remember, just because you can use a personal loan to fund pretty much anything, doesn’t mean you should. It is important to do your research and compare different lending options before you commit. If you need a personal loan, visit here to apply.
