Best personal loan in Nigeria with lowest interest rates

Personal loans are designed to help salary earners get cash to meet some of their lifelong dreams. A personal loan is disbursed as a lump sum with repayment distributed monthly when the borrower collects their salary. Most people take out personal loans to cover medical bills, make home improvements, give their side
hustle a little boost, pay for training to improve themselves, and do so much more!

Personal loans are also “unsecured,” which means the borrower does not need any collateral to get it. As long as they have a stable job with a registered company and their salary account is domiciled with the bank, they can get the lump sum they need.

Interest rates for personal loans are largely similar at most Nigerian banks, and loan amount is determined by how much a borrower earns monthly. Most banks cap the amount at 50% of net annual income.

Best personal loans in Nigeria

Personal loans are different from online loans, they are much more expensive with high-interest rates and can be given to non-salary earners or workers in the informal sector. If you’ve decided that a personal loan is the right type of financing for you, all you have to do is choose the bank to domicile your salary account.

UBA Personal Loans

  • One-off management fee of 1%
  • Maximum loan amount of N30million
  • Convenient repayment period of 60 months

UBA bank is one of Nigeria’s and Africa’s biggest banks and it offers personal loan to salary earners starting at a minimum loan amount of N100,000 to be repaid over a period of 60 months. Attractive interest rate (the interest rate will be on floating terms subject to changes in money market conditions, for the period of the loan).


  • Functional savings or current salary account
  • Duly completed loan application form.
  • Valid means of Identification (international passport, national driver’s license, national id card and voters card).
  • Employer’s undertaking to domicile salary with UBA.
  • Duly accepted offer letter or employee inquiry form (The offer letter should contain Employee Name, Employee Job Description/Position; Nature of Employment  (Permanent or Contract); Employee Job Status (Confirmed or unconfirmed).
  • Copy of the obligor’s staff ID.

First Bank FirstAdvance

  • Interest rate @ 2.5%flat collected upfront
  • Management fee @ 1.0% flat
  • Tenor is 30 days or next pay day [whichever comes first]

FirstAdvance is a digital lending solution designed to offer convenient and easy access to cash for payroll customers awaiting payment of their salaries.

The product is meant for salary earners whose accounts are domiciled with FirstBank and who have received regular salaries in the last six months or more. The maximum amount accessible is N500,000.00 subject to 50% of the net average three months’ salary, whichever is lower. The eligible amount is calculated after deducting all other loan obligations to the Bank. This product can be accessed via digital channels: FirstMobile and USSD, and cash is disbursed instantly.

First Bank also has other loan products that give higher amounts with up to 36 months repayment option, subject to a retirement age of 60 years and the repayment structure is flexible. The Personal Loan Against Salary does not require a guarantor and has quick processing time.

Fidelity Bank personal loan

  • Interest Rate: 2% per month. 24% per annum
  • Up to 40% of net Annual salary subject to a maximum of N5,000,000
  • Tenor – 12 Months

Fidelity personal loan is designed for individuals in private and public organizations who have a Fidelity salary account that has been active for at least three (3) months. Customers are also required to have good credit rating and repayment is distributed into equal monthly repayment comprising principal and interest.

The interest rate is 2% per month or 24% per annum, the Management Fee of 1% and the Insurance Fee of 1.5%.

Access Bank personal loan

  • Loan amount up to 75% of net annual salary
  • The interest rate for the facility is 6.5% flat
  • Up to 36 months tenure.

Access Bank offers salary earners up to 75% of their net annual salary as a lump sum to meet their financial needs. If a worker earns 100k monthly, their net annual salary will be 1.2m. They can get up to 75% of that as a lump sum, which is 900k spread over a repayment period of 36 months.


  • Completed Application Form.
  • Completed Employee Status Inquiry/Employer’s Confirmation Form.
  • Evidence of Confirmation (Letter of Confirmation, Last promotion letter etc.).
  • Copy of Employment ID and valid means of identification.
  • BVN
  • Credit checks.
  • Letter of Lien/Set off.

Union Bank personal loan

  • Maximum loan amount – N15 million
  • Maximum loan tenor – 60 months
  • Salary domiciliation – 1 month

Salary earners who earn as little as #15,000 monthly can get a personal loan of up to #15million from Union bank with a repayment period spread over 5 years!

Is a personal loan right for you?

Personal loans allow qualifying customers to borrow amounts that they will otherwise have to save for months or years as a lump sum. these loans can be very handy especially when starting a side hustle while still holding down a salaried job. Loans should not be taken to fund ones lifestyle, they should be taken to acquire more assets rather than liability as a good financial practice.

FAQs on personal loans in Nigeria 

Where do I get a personal loan in Nigeria?

You can apply for a personal loan through your commercial bank where your salary account is domiciled. If you don’t like the terms of your current bank, open a salary account with another bank.

It helps to have a strong credit score before you apply. If your credit needs work, you could still be approved for a personal loan. But with moderate to bad credit, you may end up paying a higher interest rate.

can I get a personal loan if I am not working?

No, the personal loan is only meant for verifiable workers who have a salary account with the bank. Non-salary earners can get other types of loans that might be more expensive.

Do I need collateral to get a personal loan?

No, personal loans do not require collateral, only the borrower’s salary account which must have been domiciled with the bank for a few months prior.

Which bank has the lowest interest rate on personal loan in Nigeria?

UBA bank has a one-off management fee of 1%, plus flexible interest rate subject to changes in money market conditions, making it one of the banks with the most attractive interest rate on personal loans in Nigeria.


A writer! Columnist and an academic researcher
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