How to Get A Car Loan in Nigeria (Full Guide)

In a bustling nation like Nigeria, owning a car isn’t just a luxury, it can be a necessity. Whether you’re commuting to work, running family errands, or hitting the open road for weekend adventures, owning a car can significantly improve your quality of life. But if you don’t have the full amount saved up, a car loan can be your key to unlocking that freedom.

However, not many people understand how getting a car loan in Nigeria works, as things such as the requirements, processes, repayment, etc., can differ from other types of loans. But do not worry, we’ve got you covered!

This comprehensive guide will equip you with everything you need to know about securing a car loan in Nigeria, from eligibility requirements to choosing the right lender and understanding the fine print.

Ready to put the pedal to the metal? Let’s get started!

Am I eligible for a car loan in Nigeria?

Most reputable car loan lenders in Nigeria require borrowers to meet the following criteria:

  • Minimum age: 18-25 years old (varies by lender)
  • Employment status: Salaried or self-employed with verifiable income
  • Minimum income: Varies by lender, typically N100,000 per month
  • Residency: Nigerian citizen or resident with valid identity documents
  • Good credit history: No history of defaults or late payments (preferred)

Where can I get a car loan in Nigeria?

car loans in Nigeria

When it comes to getting a car loan in Nigeria, you have several options:

1. Commercial banks:

Most commercial banks in Nigeria offer loan packages for car financing. Let’s see some of them:

i. FCMB Standard Auto Loan

FCMB’s Standard Auto Loan helps Nigerians finance their dream car with flexible options. Borrow between N500,000 and N30 million with repayment terms of 12 to 60 months. Competitive interest rates start at 29.5% and loans under N2 million require no collateral. Finance both new and used cars and enjoy peace of mind with included comprehensive insurance and no hidden charges.

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Learn more about FCMB Car loan

ii. Access Bank Auto Loans

Customers can easily apply for a car loan at Access Bank’s approved dealers’ showrooms. Once the loan application is submitted, they get a quick conditional offer via email. This service is open to both existing bank customers and non-account holders, with minimal documentation needed. The turnaround time for processing is 72 hours, subject to meeting terms and conditions.

Businesses wanting a car loan can go to any Access Bank branch or contact their Relationship Officers. The loan allows a flexible tenor of up to 48 months. To apply, businesses need a pro forma invoice from an approved dealer, addressed to “Access Bank/Your name,” along with a Vehicle Inspection report and agreement (for pre-owned vehicles). This simple process ensures businesses can easily get financial support for their vehicle needs through Access Bank.

Learn more about the Access Bank Auto Loan

iii. Polaris Bank Auto Loan Scheme

Polaris Bank offers an “Auto Loan Scheme” to help individuals finance their car purchase. Here’s a breakdown of its key features:

Key Features:

  • Interest rate: 0% p.a. for the first 4 months, followed by 25% p.a. for the remaining loan term.
  • Management fee: 1% flat.
  • Auto Insurance: 5% (mandatory).
  • Loan amount: Up to 80% of the car’s value, with a minimum of N500,000.
  • Repayment tenor: Up to 5 years (60 months).
  • Eligibility: Open to salaried and self-employed individuals with verifiable income.
  • Benefits: Partnerships with GAC Motors and Elizade JAC Motors for potential discounts, fast processing, and easy application.

Learn more about Polaris Auto Loan Scheme

Some other major banks in Nigeria that offer loans for cars include First Bank, Wema Bank, Zenith Bank, etc.


2. Finance companies:

i. Opticom Finance:

Opticom offers vehicle financing lease options for both individuals and businesses, including salary earners, businessmen, SMEs, and corporates. This lease allows ownership of a new or pre-owned vehicle through convenient and flexible financing.

To qualify, you’ll need a minimum 30% security deposit, a clean credit record, and proof of income or business financials. The loan has a maximum term of 24 months and competitive rates. Apply with a completed form, proforma invoice, and required documents based on your employment status.

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Learn more about Opticom Finance car loans


3. Car dealerships:

Many dealerships such as the below offer in-house financing options:

i. Betacar HQ (

Provides financing for used cars with a minimum loan term of 12 months and a maximum of 24 months. They also offer a car loan calculator on their website to help you estimate your monthly payments. Learn more.

ii. Autochek.Africa offers car loans for new and used vehicles in Nigeria and across Africa. They connect users with financing partners, providing convenient options for both pre-owned and brand-new cars. The platform allows pre-qualification, comparison of offers from various lenders, and negotiation for competitive interest rates.

The application process is simplified, and done online with minimal documentation, ensuring fast approvals, often within 24 hours. Additionally, assists with vehicle inspection and insurance to enhance the overall car acquisition experience. Check eligibility.

How much can I borrow?

The loan amount you qualify for will depend on how you earn, your creditworthiness, and the lender’s policies. Generally, most lenders can only allow you to borrow up to 70-80% of the total value of the car.

What documents do I need?

When looking to borrow money for a car in Nigeria, be prepared to present the following documents during your application:

  • Valid ID (driver’s license, international passport)
  • Proof of income (salary slips, tax returns)
  • Bank statements for the past 6 months
  • Employment verification letter
  • Proof of address (utility bills, rental agreement)
  • Proposed car details (make, model, year, price)

What are the interest rates and fees?

Interest rates on car loans in Nigeria can range from 15% to 30% per annum, depending on the loan amount, loan tenure, and your credit score. Keep in mind that additional fees like processing fees, late payment charges, and origination fees can apply.

What are the risks of taking a car loan?

Getting a car loan can be like a road trip to your dream car, but watch out for problems! Things like having too much debt, paying a lot of interest, owing more than your car’s worth, and unexpected costs can mess up your budget. If you don’t make your payments on time, it can hurt your credit score and even make the lender take your car back. Also, cars losing value, accidents, and higher insurance costs can make things bumpy.

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So, before you take off with a loan, think about these issues and make sure your journey to owning a car is smooth and happy!

More FAQs:

Q: How long does it take to get approved for a car loan?

A: Typically, the approval process takes 1-2 weeks, depending on the lender and the complexity of your application.

Q: Can I use a car loan to buy a used car?

A: Yes, most lenders offer car loans for both new and used cars. However, the loan amount and interest rates for used cars may differ.

Q: Is a car loan the same as a car repair loan?

A: Although both car repair loans and car loans have to do with borrowing money to cover expenses related to your vehicle, they differ in some ways. Car loans are for buying a car, while car repair loans are for fixing your existing car. They differ in terms of collateral, loan amount, interest rates, repayment terms, and where they are available.

Q: What happens if I miss a car loan payment?

A: Missing a car loan payment can hurt your credit score and lead to late payment fees. Contact your lender immediately if you face any payment difficulties.

Pro tips for getting a car loan in Nigeria:

  • Shop around: Compare loan offers from different lenders before making a decision.
  • Improve your credit score: Pay your bills on time and maintain a healthy debt-to-income ratio.
  • Negotiate the interest rate: Don’t be afraid to negotiate for a better interest rate, especially if you have a good credit score.
  • Read the fine print: Carefully review the loan agreement before signing to understand all the terms and conditions.

Remember, a car loan is a big financial commitment. With the above tips and extra research from your end, you can make informed decisions and cruise toward your dream car with confidence!

Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any car loan decisions.

We hope this post provides a valuable resource for anyone considering a car loan in Nigeria. Remember, the key is to be informed, compare options, and make responsible financial decisions. Good luck on your car loan journey, and may your new ride bring you many happy miles!


Many loan apps change their interest rates and repayment terms over time. Always review the terms and conditions carefully before downloading any loan app. B4loan doesn't promote any loan app, we just help you make informed decisions.

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