Written By Dedeigbo Ayodeji
Posted By Admin
Published By Fitness Network Communications
Loans are meant to provide individuals or organizations with additional money to cover their expenses and other obligations—It is then paid back over an agreed period of time, with interest.
Personal loans and salary advance loans are the most popular offerings. While the former is an instant loan given to individuals following verification, the latter is usually extended to salaried professionals. But even though personal loans tend to cost less because they have longer-term lengths, there are still a few factors to consider before deciding what option works best for you.
According to a report by Bankrate, some of the top reasons why people get personal loans include emergencies, relocation purposes, debt reconciliation, payday loans, and other celebratory costs. Depending on why you’re taking a loan, it’s important to decide the amount based on whether you have a monthly budget for principal payments plus interest. If it’s an emergency you need money for, a salary advance loan may favor you better than payday loans because it is quicker and doesn’t involve middlemen. Nonetheless, personal loans are a very good option when it comes to vehicle financing or acquiring new gadgets. This is because, in the long run, taking out a loan means you can still build a savings portfolio for rainy days.
With rising inflation figures in countries like Nigeria (15.63%), salary earners are in fact heavily affected. Despite a steady flow of income, they face difficulties in meeting certain obligations or recurring bills. Sadly, the reality is that most Nigerians would rather borrow from friends and family than take a loan. This is largely because of high-interest rates, an inability to meet certain requirements, and the fear of harassment from digital lenders who use shame tactics to recover loans.
In order to bridge this gap, Nigeria’s foremost financial institution, First Bank of Nigeria Limited (FirstBank) offers its customers better and simpler alternatives through a variety of loan products. The bank is also creating opportunities for millions of salary earners to dream big by harnessing the full potential of their accounts.
Here’s a breakdown of its loan plans
FirstAdvance, as the name implies, helps you attend to financial obligations that may come up before salaries are paid. This plan offers a maximum amount of ₦500,000, depending on the average of the applicant’s salary over the course of 3 months. However, customers are required to have an active salary account domiciled with First Bank, with proof of regular salary payment. The cash loans for payroll customers have an interest rate set at 2.5% flat, collected