car loan companies in nigeria

Car loans are one of the most popular ways to finance a car purchase in Nigeria. This type of loan provides individuals and businesses with the financial resources needed to purchase a car, which can be repaid over an agreed period with interest.

In this article, we will explore car loans, what to consider before choosing a car loan, reasons to get a car loan, and a list of car loan companies in Nigeria.

What is a car loan?

A car loan is a type of loan that is designed to help individuals and businesses purchase a car. Banks, financial institutions, and car dealerships typically offer this type of loan. Car loans are usually repaid over an agreed period, usually between one to five years, with interest. The interest rate on car loans may vary depending on the lender, the loan amount, and the borrower’s credit score.

What to consider before choosing a car loan

When considering a car loan, it is essential to consider the following factors:

Interest rates: The interest rate is the amount that will be added to the principal amount borrowed, and it is important to compare the rates offered by different lenders to ensure you get the best deal.

Loan term: The loan term refers to the time you have to repay the loan. A longer loan term may mean lower monthly payments, but it also means paying more in interest over the life of the loan.

Down payment: A down payment is the amount of money you put down towards the purchase of the vehicle. A larger down payment can mean a lower interest rate and monthly payments.

Credit score: Your credit score will significantly determine the interest rate you are offered. A higher credit score means a lower interest rate, while a lower credit score may mean a higher interest rate.

Repayment terms: It is important to understand the repayment terms, including any fees and penalties for late or missed payments.

Reasons to get a car loan

There are several reasons why someone may choose to get a car loan:

  1. It can be an affordable way to finance the purchase of a car.
  2. It can help individuals and businesses purchase a car they may need help to afford upfront.
  3. It can help build credit if the borrower makes their repayments on time.

What kind of interest rates might be anticipated for a car loan?

In Nigeria, the annual percentage rate of interest on auto loans can range anywhere from 17% to 30%, depending on the Bank. These extremely high-interest rates are the direct outcome of several variables that, given Nigeria’s current state of affairs, cannot be avoided.

Factors that affect interest rates on a car loan

Several factors can affect the interest rate on a car loan, including:

Credit score: The higher your credit score, the lower your interest rate is likely to be. Lenders view borrowers with higher credit scores as less risky and are more likely to offer them lower rates.

Loan term: The longer the loan term, the higher the interest rate is likely to be. This is because longer loan terms mean a higher risk for the lender, as there is more time for something to happen that could affect your ability to repay the loan.

Down payment: The larger your down payment, the lower your interest rate is likely to be. This is because a larger down payment means you’re borrowing less money, which reduces the lender’s risk.

Type of car: The make and model of the car you’re buying can also affect the interest rate. If the car is considered less reliable or has a higher risk of depreciation, lenders may charge a higher interest rate to compensate for the increased risk.

Lender policies: Each lender has its policies regarding interest rates. Some lenders may offer lower rates to customers with a certain credit score or for certain types of loans, while others may charge higher rates for loans with longer terms or borrowers with lower credit scores.

Economic conditions: Interest rates are also influenced by general economic conditions, such as inflation, the Federal Reserve’s monetary policy, and the overall state of the economy. When the economy is doing well, interest rates are likely to be higher, while they may be lower during economic downturns.

List of car loan companies in Nigeria

Here is a list of some of the car loan companies in Nigeria:

  1. Access Bank Group
  2. First Bank Nigeria
  3. United Bank for Africa (UBA) Nigeria
  4. Stanbic IBTC Bank Nigeria
  5. First City Monument Bank

Access Bank Group

The Access Bank Group offers auto financing. The company created this solution so their clients could easily and affordably buy the cars they desired. The loan application process can be completed entirely online at Only cars purchased from dealers approved by the Bank are eligible for financing. Access Bank loan tenor is up to 48 months.


  • Access to a wide range of vehicle brands and models
  • Pre-owned and brand-new vehicle purchase financing
  • Vehicle re-financing for pre-owned cars
  • Access to a wide range of vehicle brands and models
  • Highly competitive interest rates


  • Equity contribution as low as 10% of the invoice value
  • Open to salaried income persons, SMEs, and Corporates
  • Also available is the financing of the vehicle’s routine maintenance, Insurance, and registration
  • Highly competitive interest rate.
  • Management fee @ 1% (one-off)
  • Up to 48 months tenor
  • Wide variety of vendors to choose from.


  • Pro forma invoice from any of the Bank’s approved vendors addressed “Access Bank/Customer’s name.”
  • Credit Checks
  • Completed application form
  • Blank transfer of ownership Form
  • Vehicle Inspection Report & Agreement (Pre-owned vehicles only)
  • Duly accepted offer letter & term sheet

Customer Care Contact

Tel: 07003000000

First Bank of Nigeria

Are you looking to buy your dream car? The First Bank of Nigeria (FBN) can help realize it with its auto loan option. This loan is also available for businesses in Nigeria looking to purchase vehicles for their daily operations.

With a maximum loan amount of #15 million and a tenor of up to 48 months, this loan is tailored to fit your needs. The interest rate for the FBN Auto loan is 22%. To learn more about this loan option, visit the official website of First Bank of Nigeria.


  • Improve the affordability of vehicles.


  • Up to 48 months tenor (four years)
  • Equity contribution is 30% of the invoice value.
  • Finance is available only for brand-new vehicles.
  • Maximum loan amount of N20 million.
  • Open to salaried income persons whose salary is domiciled in First Bank or who want to move their salary account to First Bank.
  • Highly competitive interest rates.
  • Flexible repayment structure.
  • Access to a wide range of vehicle brands and models.

Required Documents:

  • Proforma Invoice
  • Auto Loan application form
  • A valid copy of acceptable Identification e.g. Letter of irrevocable domiciliation of salary for the duration of the facility.
  • Driver’s license, International Passport, or National Identity card.

Contact Details

Tel: 0708-062-5000.


United Bank for Africa (UBA) Nigeria

UBA has become a prominent player in the Nigerian banking industry thanks to its commitment to delivering exceptional customer service. As part of its efforts to provide value-added services to customers, UBA has developed an auto loan product that enables customers to upgrade their vehicles or purchase new ones.

The UBA auto loan product offers customers a maximum loan amount of #15 million, which can be repaid over up to 48 months. This allows customers to choose a repayment period that suits their needs and financial circumstances.

Whether customers are looking to upgrade to a higher model or purchase a brand-new car, the UBA auto loan product offers a convenient and affordable financing solution. With its competitive interest rates and flexible repayment terms, the UBA auto loan product is designed to help customers achieve their dreams of owning a new car.

Features/ Benefits

  • Access to reputable auto dealers/retailers
  • Convenient repayment terms; up to 48 months
  • Attractive interest rate (the interest rate will be on floating terms subject to changes in money market conditions for the period of the loan)
  • Maximum loan amount of N15m
  • Minimum equity contribution of 30%
  • Mandatory comprehensive insurance and vehicle tracking


  • Functional savings or current salary account
  • Valid means of Identification (International Passport, National Driver’s License, National ID Card, and Voters’ Card).
  • Duly completed loan application form.
  • Employer’s undertaking to domicile salary with UBA.
  • Duly accepted offer letter or employee inquiry form (The offer letter should contain the Employee’s Name, Employee Job Description/Position, Nature of Employment (Permanent or Contract), and Employee Job Status (Confirmed or unconfirmed).
  • Copy of the customer’s staff ID.
Read Also:  How to Borrow Money From Opay Loan 2024

Contact Details

Tel: +234 700 2255 822 (0700-CALL-UBA)

+234 1 280 8822 (2808UBA)


Stanbic IBTC Bank Nigeria

If you have been dreaming of owning a car, now is the time to make that dream a reality with the Vehicle and Asset Finance program offered by Stanbic IBTC Bank. This medium-term loan option is designed to help both salaried and non-salaried customers purchase their dream cars.

Applying for a vehicle loan is simple and quick, and our loan terms are flexible. Salaried customers can enjoy a maximum tenor of 60 months, while non-salaried customers can also benefit from this program. Bankers have a maximum tenure of 48 months. For used automobiles, tenors are subject to further consideration.

With their Vehicle and Asset Finance program, you can enjoy the convenience of owning your dream car without paying the full amount upfront. Our loan product provides you with a financing option that is both affordable and convenient, ensuring that you maintain your financial stability while still fulfilling your desire to own a car.

Features and Benefits:

  • Flexible Payment Terms – with up to 4 years tenor for repayment
  • Access to competitive interest rates
  • Access our comprehensive dealer/partner network to help you find your car.
  • Affordability
  • Choice
  • Flexibility


  • You must have an active account that is at least 6 months old with the Bank.
  • You should be at least 18 years old at the loan application date and a maximum of 59 years.
  • You must not have any history of dud cheques. You must have satisfactory credit reports.

Contact Details

Tel: 01 422 2222

First City Monument Bank (FCMB Auto Loan)

FCMB offers a consumer credit scheme known as the FCMB auto loan, which allows its customers to fulfill their dream of owning the car of their choice while spreading the payments over a period. The FCMB auto loan product is tailored to suit the needs of customers who desire to own a car but are unable to pay the full amount upfront.

With the FCMB auto loan, customers can access a loan amount ranging from N500,000 to N3 million, depending on their financial capacity and the type of car they desire. The repayment period for the loan is flexible and can last between 12 to 60 months, depending on the amount borrowed and the type of car being purchased.

By providing affordable and flexible financing options, the FCMB auto loan empowers customers to purchase the car of their dreams without experiencing financial strain. Whether a brand-new or a used car, the FCMB auto loan product offers customers the opportunity to enjoy the convenience and luxury of owning a car while maintaining their financial stability.


  • Interest rates as low as 29.5%
  • Payment over 12 to 60 months
  • Contribute as low as 20% toward the purchase
  • Borrow N500,000.00 to N30,000,000.00
  • Comprehensive Insurance on the car for the entire loan period
  • No security required
  • Competitive pricing and no hidden charges


  • Buy a car of your choice from our list of acceptable brands and spread payment over a convenient period
  • Installation of free tracking device for auto valued at N3,000,000 and above
  • Reliable dealers accredited to ensure you buy from a safe source
  • Convenient insurance payment included in the loan repayment amount
  • No residual cost at the end of the loan


  • Individuals in structured employment
  • Self-employed individuals with regular income.

Contact Details

Telephone: 01-2798800, 07003290000.


Whatsapp: (+234) 09099999814 or (+234) 09099999815

Autochek Financing

Autochek is a company that specializes in providing innovative automotive technology solutions. Their latest offering, Autochek financing, allows customers to purchase their dream car and pay for it in convenient monthly installments.


  • To make the financing tenor as hassle-free and convenient as possible, all Autochek car loans come with insurance, annual maintenance, and registration. These services are conveniently located at the nearest Autochek center to the customer.
  • Additionally, during the loan tenor, each customer is assigned a service advisor. The advisor ensures that the car receives frequent maintenance checks at regular intervals, providing customers with peace of mind.

Overall, Autochek financing is an excellent option for anyone looking to purchase a car without the financial burden of paying for it all at once. With their convenient monthly payment plan, customers can easily make their dream of owning a car a reality.

To get started:

  • Interested customers can simply fill out a short form on the Autochek website. This will provide them with personalized car options to choose from.
  • Once a car has been selected, customers can review the financing terms to ensure they are comfortable with them.
  • After reviewing the financing terms, customers can then apply for a loan and receive personalized loan offers. Once a loan offer has been accepted, customers can drive home in their dream car.

Contact Details

Head office: 1, Sylvia Crescent Anthony Village, Anthony, Lagos


Tel: +234 700-288-6243

Betacar Financing

Betacar is an innovative e-commerce platform that is committed to transforming the car buying experience in Nigeria. One of their offerings is the BetaCar Financing loan scheme, which allows salaried individuals and business owners in Nigeria to purchase certified Tokunbo cars and pay for them over a period of 12-24 months.

The most noteworthy aspect of BetaCar Financing is that once a complete application package has been submitted, the car is usually ready for pickup within one week. To start the process, simply visit the Betacar website and follow the steps below:

  • Browse the available cars and select your preferred vehicle.
  • Use the user-friendly car loan calculator to determine the upfront deposit required, monthly repayment amount, and payment period.
  • Click on the “Apply for Loan” button and complete the pre-approval assessment form.
  • Within 10 minutes, you will receive an email either approving or rejecting your application.
  • If approved, you will receive an email listing the documents required for the application process.
  • Visit the Betacar HQ office for a test drive and vehicle inspection.
  • Scan all required documents and submit them via email to
  • The Betacar team will review your application package and inform you once it is complete.

Overall, Betacar Financing offers a streamlined and efficient car buying process for customers in Nigeria. With their easy-to-use loan calculator, quick approval process, and speedy car delivery, Betacar Financing is a great option for anyone looking to purchase a car in Nigeria.

Contact Details

Head Office: Block 126, Plot 1, T.F Kuboye Road, Lekki phase 1, Lagos, Nigeria


Tel: 0809-4600-007 0809-4600-008

Cars45 financing

Cars45 is a reputable platform that provides both online and offline options for purchasing cars. The Cars45 car financing service enables you to secure a car loan approval within 72 hours and pay for it over a period of up to 12 months at a monthly interest rate of 2.5%.

To be eligible for this loan, you must be a registered business owner or a salaried individual.


  • Fill a copy of the application form printed from their website
  • Valid ID Card (e.g. driving license, voter’s card, national identity card, international passport)
  • Utility bill that is not older than 3 months from your date of application
  • Employment letter for salary earners or CAC document for business owners
  • Six months bank statement for salary earners or one-year bank statement for business owners.

Here’s how you can get started:

  • Visit or any Cars45 retail outlet to begin your application process.
  • Choose a car that is available for financing, ensuring that it is either a Grade A, B, or C car with a maximum value of N3,000,000.
  • Complete your personal details in the “Get Car Loan” section and click on “Get Prequalified”.
  • Respond to the questions presented and follow the prompt.
  • Once you have answered all the questions, click on “Submit”. Within 24 hours, a Cars45 representative will contact you.

Cars45 offers a convenient and efficient way to purchase a car in Nigeria. With their car financing service, you can secure a loan approval within 72 hours and pay over a period of up to 12 months at an affordable interest rate. Simply visit their website or any of their retail locations to get started.

Contact Details

Tel: +234 818 984 0160


Frequently Asked Questions

Is a car loan a credit?

A car loan does not build credit. However, you can use the car loan to help increase your score by making on-time payments.

Can I buy a car on loan in Nigeria?

Yes, You can get a car loan if you need a car and have a steady income source. This source of income should allow you to pay back the entire loan term monthly.

Should you pay off a car loan early?

Paying off your car early eliminates your auto loan from the equation. Your DTI will naturally be lower, which opens you up for other forms of credit.

What is the credit score for a car loan?

A target credit score of 661 or above should get you a new-car loan with an annual percentage rate of around 5.82% or better or a used-car loan of around 7.83% or lower.

Bottom Line

Overall, car loans can be a useful tool for people in Nigeria who want to buy a car but need more funds to be available upfront. However, it’s important to consider all the factors involved in taking out a car loan and ensure that it is affordable and fits the borrower’s financial situation.