How Long Does It Take to Get a Loan Approved in Nigeria?

Have you ever found yourself in a situation where you needed quick access to funds? Whether it’s to cover an emergency, make an investment, or simply meet your financial obligations, the pressure to secure a loan can feel overwhelming. You’re probably asking, How long does it take to get a loan approved in Nigeria? The good news is that in today’s fast-paced digital world, loan approval times have drastically improved, making it easier for you to get the financial assistance you need when you need it most.

In this article, we’ll explore how long it typically takes to get a loan approved in Nigeria, what you can do to speed up the process, and how to plan for repayment. We’ll also give you a clearer picture of the loan options available and help you understand how to make informed borrowing decisions.

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Why Do You Need Money?

Sometimes, life throws unexpected challenges at us—an urgent medical bill, a business opportunity, or an unforeseen expense that requires immediate attention. You may need to borrow money, but the critical question remains: How long will it take to get the money in your hands? Understanding this timeline is key, especially when every second counts.

No matter the reason for needing a loan, it’s important to approach the borrowing process with a clear plan. Taking out a loan can provide the relief you need, but it’s essential to borrow wisely and repay it on time to avoid further financial strain.

How Long Does It Take to Get a Loan Approved in Nigeria?

Traditional Bank Loans

When applying for a loan with a traditional bank, such as Access Bank, GTBank, or UBA, the approval process can take anywhere from a few days to a few weeks. The time frame varies depending on the type of loan, the bank’s internal processes, and whether or not you have a pre-existing relationship with the bank.

Approval Timeline: 3 – 10 business days.

Factors that Impact Approval Time:

Your credit score and history
The amount you’re borrowing
The type of loan you’re applying for (personal, business, etc.)
Documentation requirements (proof of income, bank statements, etc.)

Microfinance Loans

Microfinance institutions, like FairMoney and UMBA Nigeria, offer loans with much quicker approval times than traditional banks. These institutions are designed to provide financial services to those who may not have access to regular banking services. With microfinance loans, you can often receive approval within a few hours or a day.

Approval Timeline: A few hours to 1 business day.

Factors that Impact Approval Time:

Minimal documentation required
Immediate verification through your phone number and BVN (Bank Verification Number)
Loan application processed via mobile apps or websites

Online Loans (Fintech Loans)

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Fintech apps, such as FairMoney, Carbon, and Branch, have revolutionized the loan approval process in Nigeria. They offer an entirely digital experience where you can apply, get approved, and receive funds directly to your account—all from your smartphone.

Approval Timeline: Instant to 1 business day.

Factors that Impact Approval Time:

No paperwork or collateral needed
Quick verification using your BVN and other personal details
A credit score assessment that’s typically automated

Salary Advance Loans

For salaried workers, banks and microfinance institutions offer salary advance loans that can be approved quickly. These loans are usually given based on your monthly income, and repayment is deducted directly from your salary.

Approval Timeline: 1 – 3 business days.

Factors that Impact Approval Time:

Having a salary account with the bank
Proof of employment and income verification

What You Can Do to Speed Up the Loan Approval Process

Prepare the Necessary Documents
Before applying for a loan, gather all necessary documents to avoid delays. Banks and microfinance institutions may require identification, proof of income, proof of residence, and a completed application form.
Use Technology
Leverage digital loan providers like FairMoney, Carbon, and Branch that provide quick, easy access to loans with minimal paperwork. These platforms typically offer near-instant approval times, so if you’re looking for a fast solution, they may be your best option.
Maintain a Good Credit Score
Your creditworthiness plays a significant role in how quickly you can secure a loan. Make sure your credit score is healthy by paying off debts on time and avoiding late payments.
Apply During Business Hours
Applying for a loan during business hours (Monday to Friday) can ensure a faster response, especially with traditional banks and microfinance institutions.

How to Plan for Loan Repayment

Securing a loan is just the first step. Repaying it on time is crucial for maintaining good credit and ensuring that your future loan applications are successful.

Here are some tips on planning for loan repayment:

Know Your Repayment Terms
Before you accept any loan offer, ensure that you fully understand the repayment terms, including the interest rate, monthly repayment amount, and the loan term. This will help you create a realistic repayment plan.
Set Aside Funds for Repayment
Treat your loan repayment as an essential bill. Set aside a portion of your income each month to cover the repayment, ensuring that you never miss a payment.
Avoid Borrowing Beyond Your Means
Borrow only what you need and ensure that you can comfortably repay the loan. Taking out more than you can afford can lead to unnecessary financial stress.
Consider Automatic Repayment
Many lenders offer automatic repayment options that will deduct your repayment directly from your bank account. This can help you avoid missing a payment.

Loan Options Available Through FairMoney

Loan Type	Interest Rate	Eligibility	Repayment
Personal Loan	15% – 20% p.a.	Must be employed or self-employed, valid ID	Repay within 30 days to 6 months
Emergency Loan	18% – 22% p.a.	Must be a registered user of FairMoney	Repay within 7-30 days
Small Business Loan	12% – 18% p.a.	Registered business with proof of income	Repay in 3-12 months
Education Loan	10% – 16% p.a.	For students or their sponsors	Repay within 12 months

Advice from Edujects

“On no account should you take beyond what you can repay. This is an opportunity, but don’t overuse it just because you have access to it freely. Don’t borrow beyond your income expectations. Endeavor to use the money for its intended purpose. Learn from the business side of the Igbo. Igbo people never borrow money for unnecessary things; the money is meant for a purpose. Everyone can have an emergency, and an emergency requires an emergency purpose. This emergency will come and go. Now that you have provision through this loan, fill the gap of the emergency. As soon as the emergency is fixed, quickly source for the repayment plan. This will build trust and integrity, driving Nigeria’s financial sector forward, where more companies can invest. The best we can encourage FairMoney to increase the number of loans given for emergencies is to pay back on time. Don’t wait until they come chasing you with phone calls. As you take the loan today, start planning for the repayment today. Share this advice with anyone who needs emergency help.”