How loan companies are driving economic growth in Nigeria
We live in a country where 1 dollar as at today is equivalent to 361 Naira. Over the past three to four years, Inflation has been inconsistent (increasing and decreasing). To better understand inflation, it is a sustained increase in the price level of goods and services in an economy over a period of time.
Money no longer has as much value as it used to. Something as common as sachet water that used to be Five (5) Naira is now Ten (20) Naira. Sweet and chewing gum are now Ten (10) Naira at a minimum. Things are different than they used to be about five (5) years ago. People are either not gainfully employed or employed but their salaries are too small to meet up with their everyday needs. A lot of companies have initiated graduate internship and trainee positions so as to cut cost. The cost of employing via regular processes is more expensive than the cost of hiring graduate interns and trainees who will be placed on a six to one year programme before actual confirmation. If those graduates are hired via the regular means then the companies would have to pay more and considering the economy, this is an option that they would much rather avoid.
Hence the need for individuals having side hustles and delving into several projects just to foot the bills. Pride has been tossed out of the window and people are doing whatever they need to do to keep a roof above their heads and live comfortably. Those who have decided that the hustle isn’t worth it have moved to yahoo, yahoo plus and yahoo plus plus, all in the search of money. The average man who cannot afford to buy things in bulk spends more money than the rich who can afford to buy them in bulk.
Loan companies have become a source of hope to a lot of people as they can now afford to make life-changing business decisions or career moves knowing fully well that they have financial backing.
Loan companies have come in to help out individuals to sort of personal issues. From paying of fees to expansion or even establishment of side hustles, online businesses, medical bills, family issues and so on. Loans are not only for extreme emergency situations, but loans have become a necessity for financial growth. I have often heard of cases where people have said they grew their businesses via loans. The flexibility of several loan companies has enabled small and medium scale enterprises the leverage of capitalizing on the loans for growth.
While bank loan systems might be rigid, private lending institutions (loan companies), however, are a bit more flexible. Gone are the days of collaterals. The days when you needed to have a landed property or an asset generally to present in order to get a loan. In recent times, the advent of guarantor loans has created more flexibility.
All that is required of you is to get a person who meets certain requirements to stand in as a guarantor for you.
A guarantor is a person or entity that agrees to be responsible for another’s debt or performance under a contract if the other fails to pay or perform. In this context, a guarantor is a person who guarantees to pay for someone else’s debt if he or she should default on a loan obligation. A guarantor acts as a co-signer of sorts, in that they pledge their own cheque or services if a situation arises in which the original debtor cannot perform their obligations.
Private lending companies are usually fast in the disbursement of funds, they typically require cheques, proof of employment, utility bills or sometimes just your bank verification number (BVN) in case of online applications and minor amount disbursement.
Your child does not need to be at home once you can meet their requirements, financial institutions have also limited criminal activities as most people would much rather do honest jobs that dishonest ones which they only resort to when there is lack of an alternative.
An economy is majorly about finances. If the masses are fine, if the masses have access to money then an economy will be fine but in a case when the masses do not have money, there are no sources of making money, crime rate will increase tremendously.
With an increase in crime rates comes a significant increase in mortality and birth rate. There will be more deaths because of robbery, drug trafficking, and desperation and there will be more births because birth control will not be accessible or not deemed a priority and chances will be left to fate.
How loan companies are driving economic growth:
- More people can now start businesses as a result of loans.
Getting a loan is now way easier than it used to be. With the advent of loan companies, people who intend to start businesses and side hustles can actually start. Loan companies spread the loans across a long period of time making it easier for repayment to be done.
- More businesses can access funding for growth and expansion.
If your business has gotten to the point of expansion and you need extra funds to give your company a facelift then you should consider getting a loan. Loan companies have helped a lot of businesses not only rebrand but also give their business or company a much-needed facelift. For buying of equipment, advertisement, hiring specialized hands which all aid in making the business thrive, a loan always comes in handy.
- Increase in purchasing power of people.
Companies that want to thrive require experienced and skilled hands. This is where financial institutions like Creditville Limited come in. They provide a means of funding for you to employ the hands or labor you need to make your business thrive in your niche. A lot more companies are open to taking loans these days because people are beginning to understand that taking a loan is sometimes necessary for economic growth.
- Jobs and employment opportunities.
There are so many financial institutions today which specialize in different kinds of loan. As these companies are established, more people are employed, as they expand also, more people are employed. Creditville Limited has six (6) branches which provide services for loan seekers and job opportunities for members of staff.
- General wellness of the populace as key bills can be paid as a result of loans (Example rent, fees, and utilities).
Sometimes, things come up and take away your savings which would have been used to pay rent, fees, utilities, medical bills, etc. At times like that, taking a loan would save you the embarrassment of being harassed or worse still kicked out of your home, your children being harassed for school fees, having to stay at home, being cut off or even losing a loved one.
- The growth of the middle class.
Loan companies are giving the middleman an edge, He now has a tool to use. A loan is a way for Him to achieve his goals without stress while He also pays without stress. The payment process is easy as it is spread over a period of time to make the middle-class man or woman comfortable.
For example, starting a side hustle and paying the loan from the business profit over a period of time. Another example would be sending your children to the choice schools they deserve and offsetting the loan conveniently.
It can, therefore, be said that loan companies/private lending companies like Creditville Limited are the main force in driving economic growth.