How to Write a Loan Application Letter in Nigeria

Do you find it difficult to write a loan application letter or you are clueless about how to go about the process?

No need to fret, you have come to the right page for a solution.

It is not surprising that a lot of Nigerians apply for loans in various financial organisations ranging from commercial banks, and microfinance banks, and that online loan apps are on the increase in Nigeria.

Due to the current economic hardship coupled with debts incurred by some Nigerians, to settle their debts, they simply look forward to applying for a loan as a solution to their problems.

Nigerians apply for loans for different reasons and purposes. Some for their businesses, education, to pay off debt while some apply for loans to “japa”.

If you’re looking to apply for a loan here in Nigeria, in simple steps, I’ll guide and put you through how to write a loan application letter in Nigeria.

Table of Contents

Applying For a Loan in Nigeria

Firstly, you need to have a plan, ask yourself the question “what do I need this money for?”

Will the business you’re planning to venture into be productive enough to pay back the loan you’re applying for in the bank?

If you don’t have a plan, at the end of the day, when you write the application for a loan, you often find it difficult to pay back the loan.

This is why some of these loan sharks make public the loan defaulters personal details on social media platforms creating public embarrassment to the defaulters and the people close to them.

Steps in Applying for a Loan

The major thing you should look out for as you’re about to apply for a loan in Nigeria is the financial institution you want to go for.

Put in mind their interest rates, the loan duration (how long will it take for you to pay off?).

Read properly the T&Cs, and read it line by line before you append your signature.

Lots of Nigerians applying for loans make the mistake of not going through the terms and conditions thoroughly, you definitely don’t want to make this mistake to avoid “had I known?”

Don’t be too eager, I repeat, don’t be too eager.

Just recently someone told me something I want you to pick from, she said “one of the policies in giving loans is not to give a loan to a customer that is too eager, the one who never lets you rest”.

Read also: How to get loans without a salary account or collateral.

How to Write a Loan Application Letter

Writing a loan application letter in Nigeria is quite simple as you can refer to the letters you wrote while in school.

Your loan application letter should be well detailed and concise, not verbose.

There are two things to consider here, are you applying for personal use or for your company?

If it is a personal loan, it is simple, all you have to do is to walk into any bank of your choice to make some findings.

Make sure you get a clean sheet of paper (A4 Paper), your identity card (work id is included), a letter of introduction from your working place if you’re an employee of an organisation.

I’ll list out in bullet points what should be included in your loan application letter so you won’t make any mistakes or leave any information out of your loan application letter.

NOTE: You’re writing a formal letter, not an informal letter.

The bank’s address (include the branch manager if you’re addressing the letter to him/her. This should be on the left side of your A4 paper.
Your address should be on the right side of your letter.
Under the address to the bank, “Dear Ma/Sir” should be written.
Heading: You should provide heading to your loan application letter. See more details in the samples below.
Body of your letter: You should explain in detail the reason and the duration.
Conclusion

Read also: Top banks in Nigeria for entrepreneurs.

Samples of a Loan Application Letter

Below are samples of loan application letters for an individual/personal use:

To the Branch Manager,

United Bank for Africa,

Lebanon Dugbe,

Ibadan.

Oyo State.

23rd April 2009.

40, Boladuro Street,

Challenge Ibadan,

Oyo State.

Dear Ma/Sir,

LOAN REQUEST

I (your name), with the account number (×××××××××) wish to request for a loan in your business office.

I look forward to hearing from you soon.

Thanks in advance.

Yours faithfully,

(Signature)

(Name)

(Phone number).

Applying for a loan in the name of your company? Ensure you have a great turnover with the bank to get a good loan.

The letter for loan application should be on your company’s letterhead. You can’t apply for a loan in Nigeria as a company on a plain sheet of paper.

XYZ CONSULTING FIRM LTD.

+234***********, 40 Boladuro Street Challenge Ibadan. Oyo State.

To the Branch Manager,

United Bank for Africa,

Lebanon Dugbe,

Ibadan.

Oyo State.

23rd April 2009.

No 40 Boladuro Street,

Challenge Ibadan,

Oyo State

Dear Sir/Ma,

LOAN REQUEST

Our company (name), with the account number (×××××××××) wishes to request for a loan in your business office to get some equipment for our business.

I look forward to hearing from you soon.

Thanks in advance.

Yours faithfully,

(Signature)

(Name)

(Phone number).

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Applying For a Loan on Your Mobile Phone

Do you know you can pick up your phone and apply for that loan you’ve been searching for?

Simply visit the Play Store/Apple store app, there are lots of applications offering loan services.

From Okash to New Credit, Fairmoney, 9ja Cash, Soko Loan and a host of others.

It is not surprising that some Nigerians prefer to apply for a loan using these mobile applications than walking into the bank.

Everyone wants comfort and a very easy experience.

Once you download the application of your choice, you click on the register button (all your information would be recorded together with your bank verification number).

While some Nigerians don’t like to apply for a loan from these Loan apps, due to the embarrassment/disgrace they put people through if they fail to make payment after the payback day, some apply for the loan and pay back in due time.

Read also: Top 10 best loan apps in Nigeria.

Conclusion

I hope you’ve learnt a thing or two from this article on how to write a loan application letter in Nigeria.

Whenever you’re in a fix or there’s something really urgent you need money to settle, you can simply visit any bank branch to make enquiries on the type of loan product they have to offer, or make use of online apps.

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About Author

Angela Ajani: Give her books and you've made her day. Ajani Angela is a graduate of History and International Studies from Bowen University, currently pursuing her Masters Degree in Peace and Conflict Studies at the University of Ibadan.
Angela loves to read and meet new people. Her interests are not limited to just education; she also loves to offer advice to people going through a lot.
Angela loves to hear from readers. You can email her at [email protected].