Loan Requirements in Nigeria: What Lenders Check

Before approving or declining a loan, Renmoney verifies your identity, reviews your credit history, assesses your income or business cash flow, considers your existing financial obligations, and checks whether you can comfortably repay the loan.

When you log in to the Renmoney app or website, or visit one of our branches to apply for a loan, you’ll usually complete a short application form where you provide information about yourself or your business.

After this, we review your application and make a decision. If your loan is approved, the funds are disbursed to you.

If you’ve ever wondered what lenders check before deciding whether to approve or decline a loan, you’re on the right blog post. Here’s what we learn about you during the loan application process and how it helps us make a responsible lending decision.

Are you a real person?

The first thing we do is verify your identity. This helps us confirm that you are who you say you are and protect you from identity fraud.

We verify the identification information you provide during your application, such as your BVN and government-issued IDs. These may include your driver’s licence, voter’s card, international passport, or National Identity Card (NIMC).

What does your credit profile look like?

Your credit profile helps us understand your borrowing history and how you have managed previous credit obligations.

We review your credit report to understand your existing loans, repayment behaviour, and other relevant credit information. We’ve shared more details about where we get your credit report, what it contains, and how it affects your financial profile in this article — Your credit profile/report & what it says about you.

You’ll also find tips on how to improve your credit profile.

Can you conveniently payback the loan?

Before approving a loan, we need to understand your ability to repay it comfortably.

We review your bank statement and assess your income. If you are a business owner, we also look at your business cash flow to understand your financial position and determine whether the loan amount and repayment plan are suitable for you.

Why do we request your BVN

Your BVN helps us verify your identity and is a Know Your Customer (KYC) requirement set by the CBN for financial institutions like Renmoney.

We use your BVN as part of your loan application process and when providing other financial services, such as opening a savings or fixed deposit account in your name.

At Renmoney, we take your privacy and data security seriously. We use strong security measures to protect the information you provide throughout our processes.

How does this information affect your loan decision?

The information you provide helps us understand your financial situation and make responsible lending decisions.

We use these details to verify your identity, review your credit history, assess your income or business cash flow, and determine whether the loan amount and repayment plan are suitable for you.

In line with responsible lending practices and applicable regulations in Nigeria, a loan application may be approved or declined based on factors such as your identity verification, credit profile, income, existing financial obligations, and ability to repay comfortably.

No single piece of information determines the outcome of your application. We consider the complete picture to make a fair lending decision.

Renmoney takes data security and privacy seriously, and we are trusted by over five million Nigerians to help them manage their money every day.

To get a quick loan up to ₦1 million within 5 minutes, log in to Renmoney and apply. Or contact us here.