Most people have a big problem with the interest rates of their loans. The interest rate of a loan is the amount that you have to pay every month. The higher the interest rate, the more you will have to pay than the amount you received.
If you are thinking about getting a loan, you need to know about these things before going for one. Here, we will go over seven tips on how to get the best loan repayment plan in the year 2022.
1. Know the Terms of the Loan
Whenever you are looking for a loan, you need to know the terms of that loan. You need to know about the terms of the loan to compare them with other lenders. You will be able to see if there are any differences in terms of loans.
This is very important since it will give you a better understanding of what kind of interest rate you will have to pay, or what kind of repayment plan you will be required to take. Many people are not aware of the loan terms, so they end up taking on a loan with a high-interest rate.
2. Read the Fine Print
Many people do not read the fine print before getting a loan. This is because they want to know about everything in detail, and do not want to miss anything. However, many people do not read the fine print before getting a loan because they are unaware of it.
You need to understand that there are certain things that you will have to pay when you get a loan. If you get a higher interest rate than what you should pay, it will be more expensive for you.
You should know about the fine print before getting a loan rather than finding out too late once the process has started.
3. Do Your Research
On the Best Loan Repayment Plan, many lenders offer a loan repayment plan that is affordable and suitable for you. If you want to get an affordable loan, you need to research the best loan repayment plan.
You can get a hold of a few different information from online sources e.g loan servicing software, as well as from your friends and family members. This will help you get the best deal because many people have used this to get a loan before.
Many lenders offer an affordable loan, but you need to know the interest rates and other things. On the other hand, if you are looking for an affordable loan and have a good interest rate, you should get a hold of it from a reputable lender.
4. Ask Others for Advice
In getting the best loan repayment plan in 2022, you need to ask other people. You can ask the people you know if they have had a similar situation and if they can get the best loan repayment plan.
You can also ask your relatives and friends. It will be better to get a loan from a friend or relative since they will not charge you interest on their loans. If you can take advantage of this, it will be easy to get the best loan repayment plan in 2022.
5. Think About Your Income
If you are not getting a good income, you need to take a low-interest rate loan. It is better to take out a loan with a low-interest rate so that your monthly payments will be less, and you will be able to pay it off as soon as possible. If you are worried about the interest rate, getting a loan with an adjustable rate is better.
6. Consider Your Credit Score
When you want to take out a loan, it is essential to consider your credit score. Your credit score will indicate how much you can afford to pay, and how much you can borrow. If you want to get a loan with a low-interest rate, it is essential to have a good credit score. You should check your credit score before applying for the best loan repayment plan in 2022.
The tips mentioned above will help you get the best loan repayment plan in 2022. You need to know about the interest rate, as well as about the loan fees and other things that are associated with the loan. You can also get a hold of a few different information from online sources.
CBN Grants License to Gabsyn Microfinance Bank
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has granted Gabsyn Microfinance Bank the final approval to operate as a microfinance bank in Ikorodu, Lagos State.
With this approval, Gabsyn MFB joins over 876 licensed microfinance banks to operate in that space, to deliver the much-needed financial services to the unbanked, which according to EFInA (2020 survey) shows that about 38 million citizens (35.9 per cent of the adult population), do not have access to financial services in Nigeria.
As a partner in the actualisation of the objectives of the National Financial Inclusion Strategy (NFIS), Gabsyn MFB affirmed its commitment to creating a better everyday life for all stakeholders in line with the financial inclusion agenda of the CBN and Nigeria and expressed excitement at the opportunity to support its fulfilment.
“The bank is well positioned in a strategic location in Ikorodu where it can use its well-trained, motivated, young and dynamic staff as well as its experienced management team to design and offer flexible, value-adding and sustainable financial services to the communities. There are millions of Nigerians who are yet to tap into the immense benefits available in the financial sector because they are currently excluded.
“Gabsyn MFB will open a viable avenue for all to access a broad range of financial and social services such as loans, savings, alternate payment services, money transfers, improve financial literacy, etc, some directly and others through strategic partnerships,” a statement from the small lender said.
Microfinance Banks (MFBs) are critical to Nigeria’s financial inclusion goals, particularly because of their role in providing financial services to the underserved segments of the Nigerian economy.
In a demonstration of its acknowledgement of the importance of the sector, the Nigerian government launched the National Financial Inclusion Strategy in 2012 (NFIS 2012), to achieve 80 per cent inclusion by 2020. The NFIS was reviewed in 2012, and the CBN and its stakeholders came up with the Revised NFIS document which targets a 95 per cent financial inclusion threshold in Nigeria by 2024. This is ambitious given that the financial inclusion index moved from 57.3 per cent in 2010 to 60.3 per cent in 2012 and 63.2 per cent in 2020, a growth of about 5.9 per cent in 10 years. Achieving a 31.8 per cent increment in 4 years is indeed ambitious, but not impossible.
According to the Managing Director of Gabsyn MFB, Mr Waheed Odekale, “Our mission is to use simple financial solutions, strategic alliances and partnerships to improve the socio-economic status of our stakeholders.
“Our services will empower low-income households, enhance their productive capacity and consolidate their economic base.
“We are very excited by the opportunity to be practically and productively driving the financial inclusion agenda of the Central Bank of Nigeria.”
While leveraging the use of technology to improve customers’ experience, on the one hand, the bank said it will be going the extra mile with the introduction of Saturday banking services.
CBN Advocates Collaboration to Grow Payments Ecosystem
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) is moving to strengthen the digital payments ecosystem and position Nigeria firmly on the global payments landscape with more collaboration.
This is in line with its commitment to deepen and stimulate the growth of digital payment in Nigeria and beyond.
This was the crux of a two-day event tagged Collaborating for Industry Growth and Profitability held by integrated digital payments and e-commerce company, Interswitch Group, where industry players gathered to discuss how to strengthen the ecosystem.
The industry leaders, drawn from banks, fintechs, micro-finance banks, telcos and other financial institutions, reached the resolve that designing innovative financial products which speak to the needs of customers will spur growth and economic prosperity.
The experts also noted that players in the financial space need to synergize to explore avenues for mutual growth, which will in turn create a robust payment ecosystem.
Speaking at the event, Mr Jimoh Musa, Director, Payment System Management Department, CBN, said the lender’s responsibility as a regulator is to create an enabling environment where all the entrants can thrive and compete healthily.
“We understudy all the interoperable operations of each technology company, and all the participants generally. And from time to time, we bring all these entities together to dialogue to enable us to decide what the best industry practice is in relation to Nigeria’s payment ecosystem.”
During the two-day event, Interswitch officially unveiled eight new products designed to address prevailing issues within the payments ecosystem, enhance business development and boost customer experience.
The products include Fintech-in-a-box; Fraud Solution-as-a-Service (FSAAS); Banking-as-a-Service; Payment-as-a-Service; Interswitch Security-as-a-Service; Mobile Banking-as -a-Service, and Biometrics on POS and Value financing.
These products are tailored to provide seamless payment solutions to banks, fintechs, micro-finance banks, other financial institutions and their customers. Essentially, these products will help to improve the digital payment solutions that financial institutions offer to their customers.
Critical points the products will be solving include protecting customers against digital payment fraud, effective value financing tools for lenders, seamless integration to payment channels, enhanced customer experience etc.
Speaking during the panel session, Mr Akeem Lawal, Managing Director, Interswitch Purepay, said players in the payment industry must collaborate to provide opportunities to co-create solutions that make digital payment safer and further drive profitability.
He said “Interswitch is committed to partnering with stakeholders to drive financial inclusion through its innovative products and solutions continuously. These products reaffirm the company’s continued drive to improving Nigeria’s digital payments landscape through innovation and the development of first-rate solutions and infrastructure that address pressing needs in the payments ecosystem”.
Mr Lawal further said Interswitch would continue to enter partnerships that will not only simplify payments but also drive prosperity across the continent.
The panellists noted that partnerships would allow players to increase revenue and grow faster, avail them opportunities to leverage one another’s infrastructure, drive financial inclusion and build a robust ecosystem, urging players to collaborate more to provide quality service for the end users to enhance growth and more opportunities.
First Bank Stops Use of Naira Cards for International Transactions
By Dipo Olowookere
From Friday, September 30, 2022, customers of First Bank will no longer be able to use their Naira cards for international transactions, Business Post reports.
This development is triggered by the scarcity of foreign exchange (forex) in Nigeria, the financial institution confirmed in a message to its customers on Wednesday.
The lender disclosed that for customers to complete their offshore transactions, they would have to obtain multicurrency cards, which allow them to spend up to $10,000.
Nigerian banks have struggled to meet the FX demands of their customers because of a shortage in supply despite the prices of crude oil rising in the global market.
The government had blamed attacks on oil facilities in the Niger Delta region of the country as well as oil theft as the reason for low crude oil output.
It was reported that last month, the oil production of Nigeria went down below one million barrels, making it difficult for the nation to earn more from crude oil sales.
“Due to current market realities on foreign exchange, you will no longer be able to use the Naira Mastercard, Naira Credit Card, our Virtual card and Visa Prepaid Naira card for international transactions. This will take effect on September 30, 2022.
“Please use your Visa Debit Multicurrency Card, Visa Prepaid (USD) Card and Visa Gold Credit Card to continue transacting abroad with limits of up to $10,000,” the message sent by First Bank to its customers today stated.
Despite the apparent FX supply crisis in the country, the Central Bank of Nigeria (CBN) has maintained that those who genuinely need forex should go through the official market, which is primarily the commercial banks.
The apex bank had maintained that sourcing FX through the black market was illegal. It also described the platform as insignificant in the FX market, saying it only accounts for 5 per cent of the landscape.
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