Home Bank Access Bank Banks Single Digit Loans, Low Interest Loans & Their Benefits

Banks Single Digit Loans, Low Interest Loans & Their Benefits

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Single Digit Loan By CBN

Does your business need cash support for handling capital, property development, or restructuring? Are you looking for a means to purchase new or more sophisticated machinery/equipment to give your business a boost? Whatever your business plans are, here are loans that are designed to meet your business needs. You are in the right place as this post will help you discover some low-interest loans to help you boost your business.

In a recent development, the Central Bank of Nigeria (CBN) announced that they have made it possible for other commercial banks to offer single-digit loans to Nigerians. The single-digit loan is meant to help create employment by empowering Nigerians with minds to go into business. This loan makes it possible for business owners to also borrow money at a very low-interest rate.

What Is Single Digit Loan

A single Digit Loan is a business loan that has an interest rate between 0-9% per annum. It is a low-interest rate business loan that makes it possible for borrowers to pay a maximum of 0.75% interest rate every month.

It is the loan type in Nigeria that its interest rate is that low. Usually, interest rates on bank loans are usually up to 23% per annum(yearly). This means that the interest rate is charged at 1.9% every month which will be undeniably high and difficult to manage especially for young entrepreneurs but the single-digit loans make it possible for banks to lend at a very low-interest rate.

What Is Low-Interest Rate Loan

A low-interest rate personal loan is an installment loan where the borrower pays in bits and at a lower interest rate.  Low-interest rate loans are among the most competitive to qualify for, which means you will pay less over the life of the loan. Your interest rate is typically much lower than the average credit card.

When the borrower is considered to be low risk by the lender, the borrower will usually be charged a lower interest rate. … For loans, the interest rate is applied to the principal, which is the amount of the loan. The interest rate is the cost of debt for the borrower and the rate of return for the lender

Low-interest rate environments are meant to stimulate economic growth by making it cheaper to borrow money to finance investment in both physical and financial assets

Nigeria Banks That Gives Loan At Low-Interest Rate

Almost all Nigerian banks are gradually taking advantage of this single-digit loan to lend money at a low-interest rate. The likes of 1. Access Bank has the Creative Sector Loan that gives out up to N10 Billion at a 9% interest per annum.

2. FCMB with divers low-interest rate loan schemes like Auto Loan which is a consumer’s credit scheme that allows qualified individuals to the part-finance acquisition of cars for personal use. Customers can own a car and pay over a period of time, the customer can access loans from N500,000.00 to N30,000,000.00 and can pay over 12 to 60 months with a contribution as low as 20% towards the purchase. It allows interested customers to purchase cars from auto dealers who have been qualified and have agreed to an SLA with the bank with comprehensive Insurance on the car for the entire loan period, FCMB Salary Top Up Loan, a credit scheme available to salary account holders. This scheme will help qualified FCMB customers access short- or medium-term funding, before payment of salaries. Eligibility is based on criteria such as domiciliation of salary account with consistent receipt of salaries for a period of 6 months and categorized employer. It is a credit scheme available to existing customers who have a salary plus a loan, FCMB FAST CASH Loans, is a convenient, paperless credit facility with no collateral required for your emergencies and urgent needs. It is an instant loan with which you can access up to N100,000 loan amount and the application is through our USSD code *329*11#. It is designed for existing FCMB customers; Non-FCMB Customers. Instant access to funds. No paperwork, no collateral, and FCMB Premium Salary Loan which provides confirmed staff of commercial organizations more usable funds. The employee’s organization must have been rated on Moody’s with a minimum BB- rating, employees interested in such loans must be eligible for a minimum loan amount of 2,000,000. It has a minimum loan amount of – N2 Million with a maximum tenure of  60 months and a minimum tenure of 12 Months. FCMB has also taken charge of giving out free business loans to women who are interested in doing business. The FCMB She Ventures business loan is very easy to get a loan at a zero interest rate. Other Nigeria banks like

3. GTBank is giving out the Fashion Industry Credit Loans for tailors, Building a fashion business is one of the most exciting and passion-filled things to do when you have the right support. That is why a single-digit interest rate loan at 9% like this was created to provide entrepreneurs in the fashion industry with all the financing they need to grow their business. They also have Food Industry Credit Loans for those Looking for means to grow their food business. You will get all the financing you need with the GTBank Food Industry Credit, which offers you a single-digit interest rate loan of just 9% per annum.

5. FirstBank is not left behind as it is also giving out loans at a very competitive interest rate. one of it is  FirstAdvance is a digital lending solution designed to offer a convenient and easy access to cash for payroll customers awaiting payment of their salaries. The product is meant for salary earners whose accounts are domiciled with FirstBank and have received regular salaries in the last six months or more. Maximum amount accessible is N500,000.00 subject to 50% of net average 3months salary, whichever is lower. The eligible amount is calculated after deducting all other loan obligations to the Bank. This product can be accessed via our digital channels: FirstMobile & USSD.

6. Zenith Bank also has a beautitful single digit loans packages. one of it is Z-Woman Business Package (SME LOANS) Z-Woman is our single digit loan product for female owned businesses for all sectors primarily geared toward growing our SME sub-sector and diversifying our customer base with a monthly or quarterly repayments pattern in line customer’s cash flow from sales/collections into account with Zenith Bank

7. Polaris Bank,, UBA, and Fidelity Bank are all giving business loans at a very low rate.

Why Single Digit Loans

There are a thousand and one reasons why this type of loan is introduced but let’s take a look at the major reasons why this loan is beneficial to everyone. The cost of acquiring landed properties in Nigeria is very expensive in some areas. It means that borrowing money at a high-interest rate to start a business will be like adding “salts to injury” therefore, the huge benefit of a single-digit loan where you can acquire a loan of your choice and it will be spread for you to pay up in bits over a period of time.

Another important reason why business owners should get single-digit loans is the fact that it is a low-interest loan and easy to pay. Single-digit loans are business loans that makes it easy for business owners to get a large sum of loan for a relatively small interest and thereby enhancing business.

CBN in collaboration with other commercial banks is now giving out single-digit loans to people who wish to start a business. This low interest makes it easy for them to borrow money and start their business. The loan also encourages new startups and persons who wish to start or enhance their existing business. The high-interest rate will discourage upcoming business-minded persons but this low-interest loan, on the other hand, will likely encourage them to get the finance to start the business.

Single Digit Loans Are Targeted At Who

We can agreeable say that an entrepreneur is an innovative person who creates a new business, bearing most of the risks and enjoying most of the rewards. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business or procedures, Entrepreneurship is the creation or extraction of value, With this definition, entrepreneurship is viewed as change, which may include other values than simply economic ones. Therefore, we’d say that single Digit Loans are business loans that are targeted at persons like these who own and run businesses or those who wish to start a business. It simply means that aside from business loans, single-digit loans might not be applicable in other loans like salary advance loans, vehicle loans, or home purchase loans.

Conclusion

You can access Intervention funds from CBN such as the N100billion Health sector Covid-19 Intervention; the N1Trillion Covid-19 Intervention; Micro, Small, Medium Enterprises Development Fund (MSMEDF), Commercial Agric Credit Scheme (CACS), Real Sector Support Facility (RSSF); CIFI; etc. faster to meet your urgent business needs.

In no time from now, all Nigeria Banks will gradually likely offer single-digit loan to all business owners. If you are interested in getting a low-interest loan for your business then the single-digit loan is good for you. Please use the share button below to share our posts on Facebook, Twitter, and Pinterest.

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