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
If all the critical stakeholders put their hands on the deck, Nigeria can meet or surpass Brazil’s $94.41 billion export performance to China in 2024 because the country has all it takes to achieve this goal.
This was the view of the Director-General of the Nigeria-China Strategic Partnership (NCSP), Mr Joseph Tegbe, when he met with the Minister of State for Industry, Trade, and Investment, Mr John Owan Enoh, to discuss move to accelerate Nigeria’s industrial revolution.
The meeting, which held in Abuja, explored actionable strategies to unlock the full industrial potential of both sectors within the framework of President Bola Ahmed Tinubu’s Renewed Hope Agenda with an overarching goal to shift Nigeria from an import-dependent economy to a production- and export-led industrial powerhouse.
Mr Tegbe emphasized that the Nigeria-China Strategic Partnership is committed to supporting this transformation, noting the country’s readiness to evolve from a consumption-driven economy into a strategic development partner—particularly with China.
He highlighted the mining sector’s vast potential, with over 40 commercially viable minerals as critical enablers of industrial growth.
The DG emphasized the need to build out local beneficiation, processing, and refining capacity—an agenda supported by clear regulatory reforms and investment incentives rather than continuing the raw export of mineral resources.
The Industrial Revolution Working Groups (IRWG)—a flagship initiative of the Presidential Council on Industrial Revitalization—are already operational, working to resolve regulatory bottlenecks, improve access to infrastructure and financing, and unlock sustainable growth across the mining value chain.
Mr Tegbe said the automotive sector was receiving focused government attention, with policies in place to make Nigeria a regional hub for vehicle assembly and full-scale manufacturing, adding that the Nigeria First Policy has already begun to stimulate demand for domestically assembled vehicles, while boosting investor confidence in the sector.
“There is a strong commitment to the implementation of a structured national automotive policy, aiming to move from basic vehicle assembly to advanced manufacturing that integrates local supply chains and paves the way for electric and energy-efficient mobility,” he said.
Speaking on Nigeria’s comprehensive strategic partnership with China, Mr Tegbe shared updates on landmark agreements secured with major Chinese firms including Huawei, China Communications Construction Company (CCCC), Chilwee Group, and Choice International Group (CIG).
According to him, these companies are bringing advanced technologies, skilled manpower, and capital into Nigeria’s automotive, mining, manufacturing, communication and clean energy sectors—contributing directly to job creation, technology transfer, and industrial innovation.
“These partnerships are not only vital for job creation, but they will also strengthen our technical capabilities, expand industrial output, and accelerate localization of production,” said Mr Tegbe, adding that, “We are changing the narrative—Nigeria must no longer be seen as a mere consumer market; but an active industrial partner.”
In his remarks, Mr Enoh reaffirmed the federal government’s renewed commitment to three priority sectors—Sugar, Cotton-Textile-Garment (CTG), and Automobiles—each backed by active industry councils to drive localized production, stimulate domestic demand, and boost Nigeria’s global industrial competitiveness.
At the center of this shift is the Nigeria First Policy, a landmark presidential directive that mandates all Ministries, Departments, and Agencies (MDAs) to prioritize Nigerian-made goods and services in public procurement.
This policy is already restructuring supply chains, catalyzing job creation, and reducing overreliance on imports across key sectors.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed in the green territory as it saw a 0.13 per cent rise on Tuesday, May 20.
The market capitalisation was higher during the session by N2.39 billion to N1.847 trillion from the N1.844 trillion recorded on Monday, and the NASD Unlisted Security Index (NSI) went up by 4.09 points to 3,154.58 points from the 3,150.49 points quoted at the last trading day.
There was a decline in the volume of securities traded at the bourse yesterday by 98.6 per cent to 572,645 units from the 42.0 million units recorded a day earlier, the value of shares transacted during the session also went down by 97.1 per cent to N6.1 million from N210.6 million, and the number of deals increased by 122.2 per cent to 20 deals from the nine deals achieved in the previous session.
The NASD OTC exchange ended the trading day with four price gainers and one price loser led by Central Securities Clearing System (CSCS) Plc, which fell by N1.83 to settle at N23.87 per share, in contrast to Monday’s closing price of N25.70 per share.
However, Geo-Fluids Plc gained 22 Kobo to close at N2.53 per unit versus the previous day’s N2.31 per unit, Food Concepts Plc rose by 14 Kobo to N1.55 per share from N1.41 per share, FrieslandCampina Wamco Nigeria Plc added 10 Kobo to sell at N40.10 per unit compared with the previous day’s N40.00 per unit, and UBN Property Plc grew by 9 Kobo to N2.25 per share from N2.16 per share.
At the close of transactions, Impresit Bakolori Plc was the most active stock by volume on a year-to-date basis with 536.9 million units worth N524.7 million, followed by Geo-Fluids Plc with 266.7 million units valued at N471.3 million, and Okitipupa Plc with 153.6 million units sold for N4.9 billion.
Okitipupa Plc was the most traded stock by value on a year-to-date basis with 153.6 million valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 21.9 million units sold for N843.0 million, and Impresit Bakolori Plc with 536.9 million units worth N524.7 million.
By Adedapo Adesanya
The Naira further appreciated against the US Dollar on Tuesday, May 20, 2025, by 0.48 per cent or N7.69 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) as the Central Bank of Nigeria (CBN) retained the benchmark interest rate at 27.50 per cent.
During the trading session, the exchange rate closed at N1,591.25/$1, in contrast to the preceding day’s value of N1,598.94/$1.
In the same vein, the local currency gained N10.79 against the Pound Sterling yesterday in the official market to sell for N2,126.60/£1 versus Monday’s price of N2,137.29/£1 and chalked up N7.51 on the Euro to finish at N1,791.49/€1 compared with the previous day’s N1,799.00/€1.
In the black market, the Nigerian currency maintained stability against the Dollar during the session to quote at N1,625/$1.
At the end of the 300th Monetary Policy Committee (MPC) meeting on Tuesday, the Monetary Policy Rate (MPR) was left at 27.50 per cent, the Cash Reserve Ratio (CRR) remained at 50 per cent, and the Liquidity Ratio (LR) was kept at 30 per cent.
In addition, the Governor of the CBN, Mr Yemi Cardoso, said the Naira is stable and more competitive in the FX market, indicating stability for the Nigerian economy.
In the cryptocurrency market, Cardano (ADA) jumped by 2.5 per cent to trade at $0.7549, Dogecoin (DOGE) appreciated by 1.6 per cent to sell at $0.2278, Bitcoin (BTC) increased its value by 1.4 per cent to end at $107,038.79, Binance Coin (BNB) rose by 1.2 per cent to finish at $655.82, Ethereum (ETH) increased by 0.7 per cent to $2,557.02, and Solana (SOL) went up by 0.6 per cent to close at $169.02.
On the flip side, Litecoin (LTC) recorded a 0.8 per cent depreciation to settle at $95.07, and Ripple (XRP) slumped by 0.2 per cent to $2.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchange at $1.00 apiece.
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