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
Single Digit Loan is a business loan that have 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. But the single digit loans make it possible for banks to lend at a very low interest rate.
Nigeria Banks That Gives Loan At Low Interest Rate
Almost all Nigeria banks are gradually taking advantage of this single digit loan to lend money at low interest rate. The likes of Access Bank have the Creative Sector Loan that gives out up to N10 Billion at a 9% interest per annum.
GTBank is giving out the Fashion Industry Credit Loans for tailors. They also have Food Industry Credit Loans for restaurants and fast food at a 9% interest per annum. FirstBank is not left behind as it is also giving out loans at a very competitive interest rate.
FCMB has taken charge of giving out free business loans to women who are interested in doing business. The FCMB She Ventures business loan is a very easy to get loan at zero interest rate. Other Nigeria banks like Polaris Bank, Zenith 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 reason why this type of loan is introduced. But lets take a look at the major reasons why this loan is beneficial to people. The cost of acquiring landed properties in Nigeria is very expensive in some areas. It means that borrowing money at high interest rate to start a business will be like adding “salts to injury“.
Another important reason why business owners should get single digit loans is the fact that its a low interest loan. Single digit loans are business loans that makes it easy for business owners to get large sum of loan for a relatively small interest.
CBN in collaboration with other commercial banks are now giving out the single digit loans to people who wish to start business. This low interest makes it easy for them to borrow money and start their business. The loan also encourage persons who wish to start business. High interest rate will discourage upcoming business minded persons. But a low interest loan will likely encourage them to get the finance to start the business.
Single Digit Loans Are Targeted At Who
Single Digit Loans is a business loan that is targeted at persons who owns business 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.
Gradually all Nigeria Banks will 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.