How to Start a Loan Business in Nigeria

Filed in Directory, Finance, How To by on March 14, 2019 0 Comments

This article will provide you with the necessary information on how to start a Loan business in Nigeria. We hope if guide you.

We live in a world where money is a challenge to many people. They either have little or are unable to live within their means or they do not have it at all.

Read Also: Functions of the Federal Mortgage Bank of Nigeria

How to Start a Loan Business in Nigeria

How to Start a Loan Business in Nigeria – Photo Source: https://www.taxscan.in

Everyone needs money on a daily basis to foot bills. And I know you must have heard people say that to have money, you need money.

Financial institutions have been a place where people go to for loans and when they want to pay back, they pay interest on it. But an average person would just think that the interest is just meager. Let’s do a maths together.

Read Also: How to Become an Entrepreneur in Nigeria

If I lend you 1000 Naira with the agreement that when you are returning it in 30 days’ time, you’ll pay 1,100. You’ll just jump at the offer because 100 naira is a small amount of money.

Now, if I do the same thing to 50 people, I give 50 people 1000 naira each with the same agreement, at the end of the month, I’ll have an additional 5,000 naira added to my 50,000 without having to lift a finger.

But the risk in this business is a great one as people may just collect your money, squander it and at the end of the day, they tell you stories.

Other may just collect the money and boom! They’re dead. Your money will be lost in that case. These are the essence of this article, to help you provide the necessary information on how to guide your loan business.

How to Start a Loan Business in Nigeria

Read Also: 10 Steps to Attain Financial Independence

Here are guides on how to start a Loan Business in Nigeria:

a. Register with the appropriate bodies like Corporate Affairs Commission for your business name after which you apply to the Magistrate Court that has authority where your business will be cited with copies of the following documents:

1.. A cover letter addressed to the Chief Magistrate on the Applicant’s letterhead.

2. Certified True Copy of CAC Form

3. A copy of Memorandum and Articles of Association of the Company.

4. Certificate of Incorporation.

5. Your personal Tax Clearance (to show that you pay tax)

6. Police Clearance from the Commissioner of Police of the region where your business will be cited.

Read Also: Functions of the Central Bank of Nigeria

7. Evidence of Maintenance of current account with a licensed commercial Bank.

Upon approval by the magistrate court, you’ll get some documents from them which you’ll use to apply to the Ministry of Home Affairs and Tourism.

Upon application, they’ll come and check your facility and staffs and if they are satisfied with what they see, you’ll be given the go ahead to continue operation.

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I am Wisdom Enang; a Writer, Editor, and Publisher. To do businesses with us, reach us on our email or connect with me personally by clicking on Facebook.

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