Credits to both individual and corporate organizations are available in Nigeria through several formal and informal institutions. These institutions can be commercial banks, microfinance banks, lending houses, mortgage houses, etc. A lot of times, credit is also available through informal means like family and friends.
The sources of credit in Nigeria include:
- Commercial banks like First bank, Access bank, Guaranty Trust Bank, etc.
- Discount Houses
- Development Institutions
- Merchant Banks
- Microfinance Banks
- Primary Mortgage Institutions
- Local Cooperative Societies. These are locally organized money contribution groups, where each member deposits a certain amount per day, week or month. At the end of a cycle, a member can collect all the money they have saved, and in addition to that, be able to borrow some more money from the Cooperative.
- Auto Dealers. Several auto dealers allow customers to buy a car on loan, and pay in installments. Usually there are terms and conditions guiding this transaction.
- Family and Friends. This is one of the most common sources of loan. A lot of people who do not have access to formal loans, turn towards their family members or friends, to borrow money.
- Retail Outlets. These are retail shops and supermarkets that allow customers purchase goods, and pay little by little. It can be in the form of releasing their products to you to sell, and paying back the money in installments.
The above are ways one can get a loan in Nigeria. To access capital, which means to get a long term fund to finance a business, it is best to approach an investment bank, or a commercial bank. These institutions invest their money into a business, either with the aim of sharing the profit, or owning a share of the business.