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Applying for a loan can be intimidating, so here are some basic ideas on how to secure a car loan. Please be sure to visit our loans page to fill out a loan application with one of our preferred lenders when you are ready.

Definition of a Loan

Simply put, a loan is a way to afford a product you dont currently have the financial resources to cover. Loans are paid back over an agreed period of time and usually with a corresponding interest rate. It is a financial agreement. Payment is usually made back in regular, secured installments. Once you complete the terms of your loan (very much unlike a lease), the product (in this case, automobile) belongs to you, the leasee.


In addition to the amount of money you borrow, your payments will depend on the interest the lender charges you. The amount paid for the cost of the car is called its principal charge, with the finance charge assessed as the amount paid into interest. Monthly payments are usually a combination of principal and finance charges.


This is how you understand what your loan costs: If for example you take out a 2 million naira loan for the purchase of your car, your monthly payment is assessed based on the term of your loan, say 60 months (or 5 years). Once all the stipulations of the loan are fulfilled, you will own the car.


Please check out our loan calculator to better assess the cost of your purchase