Economy
Understanding the Costs and Fees Associated With Online Personal Loans
Personal loans are offered by both traditional and online lenders. If you’re looking for a personal loan, understanding the costs and fees associated with it is one way to help determine if the cost of the loan outweighs the benefits.
There can be many benefits to taking out an online personal loan rather than a traditional one, but there could also be some drawbacks as well. Before you borrow money from any company or lender, it’s important that you receive all of your information as well as understand what you’re signing up for in order to make the best decision possible for yourself. The following article will provide information on how much traditional and online personal loans typically cost so that you can know exactly what to expect before you decide to take out a personal loan.
Interest Rates
One of the most common fees associated with a personal loan is the interest rate, which can greatly affect how much money you have to pay back overall. Traditional lenders typically have higher interest rates than online companies as well as those from some smaller local stores. In addition, some traditional lenders may require that borrowers maintain a specific credit score or certain monthly income in order to qualify for their loans.
This can be true of many different types of lending institutions including both banks and other financial businesses such as credit unions and savings and loans associations. If you don’t already have an idea of what your credit score might be, it’s usually a good idea to check out this guide to personal loans ahead of time in order to ensure that you can be approved for a loan before you apply. It helps to know which loan options you will be comfortable with regarding the amount you loan and paying back.
While online lenders may offer lower interest rates for personal loans, they aren’t always guaranteed and could potentially change depending on certain factors such as your credit score or how much you borrow. If your credit score is below average, it’s also possible that you won’t even qualify for an online loan at all as many of them require a minimum credit score in order for borrowers to receive approval. It’s important to consider the possibility of this type of scenario if you need money fast and don’t have very good credit.
Application Fees
Along with the interest rate, you should also be aware of the application fee, which is a fee applied when you first apply for your loan. For example, many traditional lenders will charge borrowers an application fee regardless of whether or not they are approved for a loan in order to cover administrative costs associated with checking their qualifications. Institutions offering installment loans for bad credit may or may not have application fees collected, but an origination fee may be charged.
In addition, unlike mortgage origination fees, which are usually negotiable, it isn’t the case with most personal loans. This doesn’t mean you should avoid getting this loan. Some loans with origination fees have low APRs, which can be advantageous for you, so review your options first by pre-qualifying for multiple loans if possible.
While online lenders usually don’t charge an application fee to borrowers, there are some institutions that do. If you can’t afford to pay upfront costs in addition to your monthly payments throughout the life of your loan, it’s important that you find out what fees are required before choosing where to take out your money from. Some lenders may only require that applicants pay their interest rate but others could require additional expenses such as processing fees and possibly even insurance premiums for covering the loan itself.
Prepayment Penalties
If you need to pay back your personal loan before the standard repayment term is up, you could potentially incur fees if you’re unable to do so beforehand. This fee is known as a prepayment penalty, which some lenders may require borrowers to pay in order to compensate for business expenses that were incurred during the processing or administration of an account. Borrowers would only be responsible for this fee if they are unable to make their regular payments without defaulting on the loan entirely. If an individual exceeds their credit limit on any type of credit card, it may trigger potential penalties such as this one.
There are many different types of lending institutions out there and not all of them will charge prepayment penalties. If you know that you’ll be able to make your payments on time, it’s best to shop around as much as possible before deciding which company to take out your loan from.
Other Fees You Should Know About
Credit Unions or Other Lending Institutions
Although many traditional financial institutions such as credit unions may offer very low rates and fees for borrowers, they aren’t always available for everyone and can potentially have restrictions depending on your location or certain qualifications that must be met. For instance, some credit unions only serve members who meet their organization’s requirements such as having a specific job title or living in a specific area.
Loans with Guarantor
If you apply for a personal loan through a company that requires a guarantor in order to approve your application, be sure to find out what they’ll charge for this service. In some cases, companies may also request additional fees from the co-signer who vouches for another individual’s ability to repay their debts on time.
Stopping Payment on Check Loans
If you took out a loan against your upcoming paycheck, it’s important that you know how much it will cost if you ever need to stop payment on a check before it has been cashed by the lender. Most institutions will require borrowers to pay an amount equivalent to at least one full cycle of interest regardless of whether or not the check was actually deposited.
Online lenders are beginning to rise in popularity over traditional lending institutions because they typically don’t require borrowers to pay the same fees or interest rates that many brick-and-mortar companies do. Although online loans may come with lower costs, it’s important that you factor in all fees before choosing where to apply for your loan to ensure that the rate you’re offered is fair for your financial situation.
If you feel like you would be more comfortable speaking with someone directly, there are also many different places you can go in order to apply for a personal loan in person. Even if you’re certain an online lender will approve your application, it never hurts to check out what other options are available so you can compare costs and determine which one would be the best solution to meet your needs.
By Modupe Gbadeyanka
Nigerian businessman, Mr Aliko Dangote, has increased his investment in Ethiopia to over $4 billion from $2.5 billion.
During a high-profile visit hosted by Prime Minister Abiy Ahmed, the business mogul informed newsmen in Gode, in Ethiopia’s Somali region, that the expanded scope includes critical infrastructure such as a 110-kilometre pipeline, a 120MW power plant, a polypropylene packaging facility, and a two-million-tonne NPK blending plant, among other new components.
The richest man in Africa described Ethiopia as a key strategic destination for Dangote Group’s long-term investments.
“In total, our declared and signed investments in Ethiopia now exceed $4 billion. This makes Ethiopia the second-largest recipient of our investments in Africa, accounting for nearly nine per cent of our continental outlay between now and 2030,” he said.
He also reaffirmed his commitment to boosting food security across Africa through large-scale fertiliser investments, declaring that the continent has the capacity to feed itself and become a net exporter of agricultural products.
Speaking on the strategic importance of fertiliser in agricultural productivity, Mr Dangote noted that Africa’s food insecurity challenges are largely due to limited access to key inputs.
Africa holds immense agricultural potential, yet continues to grapple with food insecurity due to limited access to fertiliser. Through our investments, we are committed to reversing this trend by boosting productivity, empowering farmers, and advancing a sustainable path to food self-sufficiency,” he stated as he was accompanied to inspect the site of the proposed fertiliser plant, where construction activities are already underway.
He added that his organisation’s ambition, though bold, is achievable with sustained investment in fertiliser production and agricultural infrastructure.
“Africa has the capacity to feed itself and even export to the rest of the world. Our fertiliser investments across the continent are designed to unlock that potential and secure a prosperous future for our people,” Mr Dangote noted.
He further commended Prime Minister Abiy Ahmed’s leadership and vision for economic transformation, saying he is “driving development beyond expectations, but such progress requires strong private sector collaboration. We are proud to partner with Ethiopia to help build one of Africa’s most dynamic economies in the coming decade.”
In his remarks, Mr Ahmed described his guest as a trusted partner and commended the pace of work on the fertiliser project, which he said aligns with Ethiopia’s broader development priorities.
He emphasised that the project would significantly boost domestic fertiliser production, reduce dependence on imports, and provide critical support to millions of Ethiopian farmers.
According to the Prime Minister, the fertiliser plant will also create extensive employment opportunities, strengthen the industrial value chain, and reinforce Ethiopia’s position as an emerging agro-industrial hub in Africa.
“This type of large-scale investment demonstrates the power of strong collaboration between government and the private sector,” he said. “Expanding such partnerships will accelerate economic growth, attract further investment, and improve the livelihoods of our people.”
The Dangote fertiliser initiative is widely seen as a transformative step toward reshaping Africa’s agricultural landscape, with the potential to enhance productivity, reduce import dependence, and drive inclusive economic growth across the continent.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed higher by 1.41 per cent on Friday, May 15, supported by four securities on the platform.
During the session, FrieslandCampina Wamco Plc added N14.24 to its share price to sell for N159.00 per unit, in contrast to the previous day’s N144.76 per unit.
Further, Central Securities and Clearing System (CSCS) Plc appreciated by N1.34 to N72.34 per share from N71.00 per share, Geo-Fluids Plc improved its price by 4 Kobo to N2.94 per unit from N2.90 per unit, and Industrial and General Insurance (IGI) Plc gained 1 Kobo to trade at 61 Kobo per share compared with Thursday’s closing price of 60 Kobo per share.
As a result, the NASD Unlisted Security Index (NSI) rose by 58.20 points to 4,188.41 points from 4,130.21 points, and the market capitalisation soared by N34.82 billion to N2.506 trillion from N2.471 trillion on Thursday.
During the session, the volume of trades went up by 180.8 per cent to 1.2 million units from 417,349 units, and the value of transactions increased by 29.8 per cent to N29.8 million from N23.2 million, while the number of deals fell by 22.6 per cent to 24 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 60.8 million units exchanged for N4.1 billion, and Okitipupa Plc with 27.9 million units valued at N1.9 billion.
GNI Plc also closed the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
By Dipo Olowookere
The bears overpowered the Nigerian Exchange (NGX) Limited on Friday, sinking it further by 0.76 per cent when the closing gong was struck by 4 pm.
The nation’s flagship equity market was under selling pressure during the session, as investors booked profits after the shares witnessed price appreciation in the past trading sessions.
The energy sector was the most impacted, as it shed 4.43 per cent. The consumer goods index declined by 0.90 per cent, the banking counter decreased by 0.15 per cent, and the industrial goods sector lost 0.08 per cent, while the insurance counter gained 2.42 per cent, which was not enough to salvage the situation.
Consequently, the All-Share Index (ASI) contracted by 1,912.19 points to 250,330.92 points from 252,243.11 points, and the market capitalisation moderated by 1.225 trillion to N160.444 trillion from N161.669 trillion.
Zichis was the worst-performing stock for the session after it gave up 9.97 per cent to close at N29.43, FTN Cocoa slipped by 9.95 per cent to N8.96, The Initiates slumped by 9.90 per cent to N32.30, LivingTrust Mortgage Bank tumbled by 9.88 per cent to N3.83, and International Energy Insurance dropped 9.71 per cent to trade at N2.79.
The best-performing stock was ABC Transport, which grew by 10.00 per cent to N6.27. May and Baker also appreciated by 10.00 per cent to N47.30, SCOA Nigeria surged by 9.98 per cent to N33.05, Trans-Nationwide Express expanded by 9.97 per cent to N7.06, and DAAR Communications jumped 9.76 per cent to N2.25.
Yesterday, investors traded 1.1 billion shares worth N44.3 billion in 65,744 deals compared with the 1.0 billion shares valued at N41.6 billion transacted in 74,822 deals a day earlier. This indicated a dip in the number of deals by 12.13 per cent, and a rise in the trading volume and value by 10.00 per cent and 6.49 per cent, respectively.
Chams was the busiest equity for the day, with 328.5 million units sold for N1.1 billion. UBA traded 61.6 million units worth N2.7 billion, First Holdco transacted 58.7 million units valued at N4.2 billion, Secure Electronic Technology exchanged 51.9 million units worth N45.0 million, and Access Holdings traded 51.8 million units valued at N1.3 billion.
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