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 Adedapo Adesanya
Despite signs that Nigeria’s headline inflation is easing, rising food prices continue to threaten the country’s inflation outlook, the chief executive of the Centre for the Promotion of Private Enterprise (CPPE), Mr Muda Yusuf, has warned.
He noted that structural inflationary pressures in the real economy remain pronounced despite improving macroeconomic stability.
In a policy brief released following the inflation report, he noted that headline inflation eased marginally, while month-on-month change moderated from 1.75 per cent to 1.66 per cent, indicating that headline inflation has largely plateaued.
According to him, the dominant concern in the latest inflation report is the renewed acceleration in food inflation.
This growth, he said, suggested that food prices have resumed an upward trajectory after a brief period of moderation.
Warning that a renewed increase in food inflation has significant economic and social implications, he stressed that food inflation remained the biggest driver of Nigeria’s cost-of-living crisis, stressing that rising food prices continue to erode household purchasing power, worsen poverty and food insecurity while weakening the inclusiveness of the current reform programme.
He maintained that sustained moderation in food prices is critical to improving citizens’ welfare and strengthening public confidence in the ongoing economic reforms.
Acknowledging the easing of core inflation as encouraging, he drew attention to the persistence of urban inflation.
At 16.08 per cent, urban inflation exceeded the national headline inflation rate of 15.91 per cent, while month-on-month urban inflation increased from 1.99 per cent to 2.13 per cent.
According to Mr Yusuf, the figures indicated that inflationary pressures remained particularly intense across urban centres.
He attributed the rising urban inflation partly to increasing population displacement from rural communities affected by insecurity, expressing worry that as more households migrate to urban areas, demand for housing, transportation, utilities and other essential services would increase, adding to inflationary pressures and creating additional urbanisation challenges.
Addressing insecurity in farming communities, he said, was important not only for protecting lives and property and boosting agricultural output but also for easing cost pressures in urban centres, adding that the June CPI data reinforced the view that Nigeria’s inflation challenge is predominantly structural rather than monetary.
On the monetary policy outlook, he said the data do not justify further monetary tightening, arguing that headline inflation has largely stabilised.
The CPPE chief expected the Monetary Policy Committee (MPC) to retain the current monetary policy rate at its next meeting, adding that the priority is for monetary and fiscal authorities to work together to accelerate structural reforms to expand food supply, improve logistics, reduce energy and production costs, lower debt service costs, as well as strengthen domestic value chains.
By Aduragbemi Omiyale
Additional shares of Sterling Financial Holdings Company Plc have been listed on the Nigerian Exchange (NGX) Limited.
The new equities were added to the company’s existing stocks on Customs Street on Thursday, July 16, 2026, a notice from the bourse confirmed.
Business Post reports the total new ordinary shares of Sterling Holdings listed yesterday were 13,812,239,000 units.
They were from the offer for subscription of 12,581,000,000 ordinary shares of 50 Kobo each sold for N7.00 per share, which was oversubscribed by investors.
The financial institution brought the new shares to the stock exchange to increase its total issued and fully paid-up shares to 65,929,251,414 ordinary shares of 50 Kobo each from 52,117,012,414 ordinary shares of 50 Kobo each.
“Trading licence holders are hereby notified that an additional 13,812,239,000 ordinary shares of 50 Kobo each of Sterling Financial Holdings Company Plc were on Thursday, July 16, 2026, listed on the daily official list of Nigerian Exchange Limited.
“The additional shares listed on NGX arose from the company’s offer for subscription of 12,581,000,000 ordinary shares of 50 Kobo each at N7.00 per share.
“With the listing of the additional shares, the total issued and fully paid-up shares of Sterling Financial Holdings Company Plc have now increased from 52,117,012,414 to 65,929,251,414 ordinary shares of 50 Kobo each,” the notice read.
By Adedapo Adesanya
President Bola Tinubu has signed a Presidential Executive Order on Virtual Assets Coordination, establishing a new framework to coordinate the regulation of virtual assets across government agencies as Nigeria seeks to curb fraud while supporting innovation in the digital economy.
The Executive Order, which takes immediate effect, creates a Virtual Asset Council chaired by the Central Bank of Nigeria (CBN) to harmonise oversight of cryptocurrencies, tokenised assets, stablecoins, and other digital assets without creating a new regulator.
As part of the new framework, the CBN will establish a regulatory sandbox that will allow eligible firms to test virtual asset products, blockchain solutions, and related services under regulatory supervision before they are introduced to the wider market.
The development was disclosed in a statement issued on Friday by the President’s Special Adviser on Information and Strategy, Mr Bayo Onanuga.
According to the presidency, the Executive Order responds to the growing complexity of virtual assets, which increasingly cut across the traditional boundaries of currencies, securities, commodities, and payment systems.
The fragmented regulatory environment has left gaps that have exposed Nigeria to money laundering, terrorism financing, cybersecurity and data privacy risks, fraud, and revenue losses.
The government said some unregistered operators have exploited these regulatory gaps to defraud unsuspecting Nigerians, resulting in significant financial losses.
“The Order is designed to close these gaps through supervisory coordination, without introducing new layers of regulation or displacing the mandates of existing agencies,” the statement read.
Under the new framework, the Virtual Asset Council will be chaired by the CBN, with the Nigeria Revenue Service (NRS) and the Securities and Exchange Commission (SEC) serving as vice chairs. Other members include the Nigerian Financial Intelligence Unit (NFIU) and the Office of the National Security Adviser (ONSA).
The Council will provide policy direction, improve cooperation among participating agencies, and work with the Attorney General of the Federation to develop a harmonised legal and institutional framework for the sector.
The Executive Order also establishes a Virtual Asset Office, which will serve as the Council’s operational arm. The office will be domiciled at the CBN and will coordinate information sharing, applications, and reporting among the participating agencies through a shared supervisory technology platform.
The presidency stressed that the Executive Order does not create a new regulator or transfer statutory powers from existing agencies, clarifying that instead, each institution will continue to exercise its existing mandate while working within a coordinated framework.
Under the arrangement, registration of virtual asset businesses will depend on the nature of the service being offered.
Activities classified as securities will continue to be regulated by the SEC, while payment, settlement, custody, and other services involving non-security virtual assets will fall under the CBN.
Where there is uncertainty over regulatory jurisdiction, the Virtual Asset Council will determine the appropriate supervising agency.
“The sandbox will provide a controlled environment in which eligible operators can test and operate virtual asset products, services, and blockchain-based solutions under close supervision, enabling the participating agencies to assess the implications for monetary sovereignty, financial stability, market integrity, consumer protection, financial inclusion, and revenue administration before products reach the wider market,” the statement added.
According to the presidency, the sandbox will enable regulators to evaluate the implications of emerging products for financial stability, monetary sovereignty, consumer protection, financial inclusion, market integrity, and revenue administration.
The central bank is expected to announce further details of the sandbox.
