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Top 3 reasons people get loans in Nigeria

Summary

Borrowing is serious business and you should consider your overall financial position before applying for a loan. From our engagement with over 500,000 loan applicants, we have identified three broad reasons people take out loans.

To conveniently manage big ticket expenses

Buying a car, paying your rent, upgrading your home or buying key household items like refrigerators and generators, may cost a bit more than what you have readily available or require you to compromise your long-term savings plans. A loan with repayments you can pay off conveniently within your debt-to-income (DTI) ratio might be a suitable solution to manage your overall financial situation through these major expenses.

To grow your business

Speak to any seasoned entrepreneur or business executive and you’ll learn that debt, when used the right way, can be a powerful tool for growing your business. If you’re thinking of growing your business to meet more available demand, and you can conveniently afford to make the repayments, a loan could help you achieve this goal.

To invest in yourself

Investing in yourself is always a great idea. Professional courses and certifications that give you competitive advantage, or travelling to broaden your worldview, are just a few ways to do this. Quality education or experiences can be expensive to pay for all at once. A loan could be useful on your way to achieving these personal goals, as long as you borrow for the right duration and you can conveniently afford the repayments.

Our experience with our customers has taught us that customers who borrow for these three reasons, get more value out of the loans they took out. However, there are definitely other good reasons to take out a loan. In any case, always consider your ability to make your repayments conveniently to avoid any financial stress and build a strong credit score.

Sending good vibes,

The Renmoney Team

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