Banks With Lowest Loan Interest Rates In Nigeria

Banks with the Lowest Loan Interest Rates in Nigeria are the best. Businesses need money to thrive, survive, and go through with their competitors in the market. Limiting that list could be for development, to handle an immense order, or simply an inflow of cash. 

However, whatever the reason, personal ones inclusive, always look to Banks with the Lowest Loan Interest Rates in Nigeria when you need a loan. 

To help your research, we have put together a list of Banks with Lowest Loan Interest Rates in Nigeria to explore and choose depending on which requirements and services best suit your needs.

The lending rate is the bank rate that usually meets the private sector’s short- and medium-term financing needs. This rate is generally differentiated according to borrowers’ creditworthiness and financing objectives. 

The terms and conditions of these rates vary by country, limiting their comparability. According to the World Bank collection of development indicators, compiled from officially recognized sources, the lending interest rate (%) in Nigeria was reported at 11.48 % in 2021. Nigeria’s lending interest rate values, historical data, forecasts, and projections were sourced from the World Bank in September 2022.

Nigerian banks charge an average interest rate of between 4% and 36% on loans given to customers in various sectors of the economy, especially agriculture and forestry, manufacturing, and education. 

This represents -7.5 percentage points lower and 24.50 basis points higher than the 11.50% Monetary Policy Rate (MPR). Even without that, there are other administrative charges, which sometimes are not known to customers. 

Commercial banks cannot tell the exact interest rate because they offer many loan options and varying interest rates. Therefore, factors like the amount, personal asset, credit score, tenor, and many others are considered. Generally, commercial banks tend to provide loans to those with high net worth due to the low risk.

Lowest Loan Interest Rates In Nigeria
Photo credit: Financial Goal Guide

Banks with Lowest Loan Interest Rates in Nigeria

These are the best banks with Lowest Loan Interest Rates in Nigeria:

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  • Stanbic IBTC Bank: This is one of the banks that charge the Lowest Loan Interest Rates in Nigeria. Stanbic IBTC Bank charges 4%.
  • GT bank: This is one of the banks that charge the Lowest Loan Interest Rates in Nigeria. GT bank charge is 1.3% for salary advance loans.
  • Zenith Bank: This is one of the banks that charge the Lowest Loan Interest Rates in Nigeria. Zenith Bank charges 9% for creative financing initiative loans.
  • Polaris Bank: This is one of the banks that charge the Lowest Loan Interest Rates in Nigeria. Polaris Bank charges 5% and 2.5% for digital loans.
  • Access Bank: This is one of the banks that charge the Lowest Loan Interest Rates in Nigeria. Access bank charge is 9% for creative loans.
  • Unity Bank: This is one of the banks that charge the Lowest Loan Interest Rates in Nigeria. Unity Bank’s charge is 5%.
  • Fidelity Bank: Fidelity Bank is one of the banks that charges the Lowest Loan Interest Rates in Nigeria. Fidelity Bank’s charge is 6%.
  • Rand Merchant Bank: This is one of the banks that charge the Lowest Loan Interest Rates in Nigeria. Rand Merchant Bank’s charge is 6.08%.
  • FBN Merchant Bank: This is one of the banks that charges the Lowest Loan Interest Rates in Nigeria. FBN Merchant Bank charge7%.
  • UBA: This is one of the banks that charges the Lowest Loan Interest Rates in Nigeria. UBA charge is 7%.
  • Coronation Merchant Bank: This is one of the banks that charges the Lowest Loan Interest Rates in Nigeria. Coronation Merchant Bank’s charge is 8%.
  • Wema Bank: This is one of the banks that charges the Lowest Loan Interest Rates in Nigeria. Wema Bank’s charge is 9%.

 

The current data by the Central Bank of Nigeria, CBN, on banks’ deposit and lending interest rates revealed a 3.15 percentage point increase in the average maximum lending rate to 30.73 percent in February 2022, as against 27.58 percent in December 2021. Also, the average prime lending rate rose by 0.10% to 11.78% in February against 11.68% in December. 

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Conversely, the average deposit rate in banks fell by 0.47% points to 4.6% in February from 5.07% in December.

The data further reveal that the average interest rate on a one-month deposit reduced by 0.27 percentage points to 3.46 percent in February from 3.73 percent in December. 

Also, the average interest rate on 3-months deposits fell by 0.46 percentage points to 4.48% in February from 4.49 percent in December. Similarly, the average interest rate on 6-months deposits fell by 0.26 percentage points to 4.56 percent in February from 4.82 percent.

Conclusion

Choosing the right loan company all depends on your specific needs. Therefore, it is essential that you carefully consider the loan and its requirements before committing. Whether for personal or business, you can quickly get that loan you so much need from any of the banks listed in this guide.

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There are indications that banks are broadening their interest rate margin to lessen the effect of rising inflation on their operating cost and profitability. This includes raising lending rates and reducing deposit rates.

As a result, bank customers now pay higher interest rates on loans while receiving lower interest rates on their deposits.

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Kindly go through the article on Banks with Lowest Loan Interest Rates in Nigeria and drop your view on Banks with Lowest Loan Interest Rates in Nigeria in the comment section.

 

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