9ja Favorites evaluated dozens of car loan providers in Nigeria based on their rates and terms, loan options, and other factors. Below are our picks for the best car loan providers in Nigeria. Whether you’re shopping for a new car or looking to refinance your existing one, these car loan lenders have your back.
1. Stanbic IBTC Car Loan
The Stanbic IBTC car loan has flexible payment terms with a 4-year tenure for repayment. This loan allows Nigerians to finance their new and pre-owned vehicles. However, your pre-owned vehicle must not be more than 15 years old. Stanbic IBTC has a comprehensive dealer/partner network to help you find your dream car.
This car loan is open to new and existing customers with salary accounts domiciled with Stanbic IBTC Bank. However, this requirement does not apply to you if you're a banker. If you have specific questions, contact Stanbic IBTC at 0700 909 909 909 or send an email to CustomerCareNigeria@stanbicibtc.com.
2. First Bank Car Loan
Getting a car loan from First Bank and purchasing your dream car isn't as complicated as you may think. As an employee in Nigeria, the First Bank car loan gives you the opportunity to acquire a brand new vehicle from a reputable vendor with a flexible repayment plan over a period. However, you must have a salary account with First Bank to get this loan. If you're a salary account holder with another bank, you can move your salary account to First Bank.
What's more, it's mandatory to purchase your car from First Bank's pre-approved vendor list. The maximum car loan amount is N20 million, with up to 48 months tenor (four years). To apply for the First Bank car loan, download the Auto Loan Application Form, complete and submit it at the nearest First Bank branch.
3. CIG Motors Car Loan
The CIG Motors Car Loan is available for company employees and self-employed individuals with a steady income from their business ventures. It's also available for groups of salary earners under an association. Choice International Group (CIG) Motors partners with Wema Bank to assist you in buying a GAC car with ease and at an affordable price with a flexible repayment plan.
This loan enables you to own a brand new car for as low as 195,000 Naira monthly payment. The maximum loan amount is N50 million, with 48 months tenor payment. The CIG Motors Car Loan enables you to drive your dream car, while you repay conveniently. For more info and to indicate interest, visit Wema Bank's website.
4. Access Bank Car Loan
The Access Bank Car Loan is open to both non-account holders and existing customers of the Bank. If you're a salaried customer, you can conveniently apply for this loan from Access Bank's approved dealers’ showroom. With equity contributions as low as 10%, you do not have to save much to purchase your dream car. Access Bank has a wide variety of bank-approved dealers for you to choose from.
The Access Bank Car Loan enables Nigerians to acquire new vehicles in a financially convenient manner. The minimum loan amount is N1 million, while the maximum is N200 million. You can use Access Bank's loan calculator to determine how much money you need.
5. FCMB Car Loan
First City Monument Bank (FCMB) offers a Standard Auto Loan that enables customers to own a car and pay over a period of time. You can borrow from N500 thousand to N30 million, with an interest rate as low as 33.50%. What's more, you can contribute as low as 20% towards the purchase of the car.
FCMB has reliable dealers accredited to ensure you purchase from a safe source. To be eligible for this car loan, you must either be an individual in structured employment or self-employed with regular income. You can apply for this loan on FCMB's website.
6. Betacar Financing
Betacar Financing gives Nigerians the opportunity to acquire quality certified used cars and pay over a period of 12-24 months. Both salary earners and registered business owners in Nigeria are eligible for the Betacar financing. The best part is that, after your application package is completed, your car should be ready for pickup within a week.
After submitting your application, you will get a rejection or approval email within ten minutes. If your application is approved, you will get an email listing the documents needed. For more information, visit Betacar's website or contact one of their Service Advisors at 08094600008.
7. Fina Trust Microfinance Bank Car Loan
Fina Trust Microfinance Bank offers a car loan of up to N70 million with a flexible repayment plan. Their friendly service will help you to get approved in two days and gain access to your car within five days. That is, after completing the registration process along with the comprehensive insurance policy. To discuss your package, visit the nearest Fina Trust branch or contact their hotline at +234 906 202 0040.
Pros and cons of car loans in Nigeria
A car loan enables you to buy your dream car without making the complete payment upfront. As well as minimizing the upfront expenses associated with buying a car, a car loan can help you improve your credit score. After paying off the loan, you’ll own the car. Those are some of the benefits of taking out a car loan. On the other hand, there are some drawbacks. Even if you take out a loan that fits your budget, your monthly payment can be steep.
On average, drivers pay 180,000 Naira per month for new cars in Nigeria. With this high cost, you're at risk of damaging your finances if you fall behind on your car loan payments. One missed payment can even hurt your credit score, and multiple missed payments can result in your car being repossessed. This is because your car secures the loan and if you fail to pay it back, the lender technically owns it. In other words, your lender will repossess the car to recoup its losses if you cannot make payments.
Another disadvantage of taking out a car loan is that your car’s value will depreciate the moment you drive off the lot. In the first year, a vehicle may lose twenty percent of its value. Furthermore, you could owe more than your car is worth if you have a high interest rate. In the end, whether a car loan is right for you is subject to your financial state.
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