long term loans in Nigeria

Long term loans are one of the three categories of loans (short, medium, and long-term) offered by banks and other financial institutions in Nigeria. It is worth noting that loans have been of great help to individuals and businesses in Nigeria.

With loans, individuals can foot their bills while businesses can easily match up to the competition in the market.

In this article, we will extensively discuss long-term loans in Nigeria, where to get them, and how to apply for long terms loans in Nigeria. Kindly read down.


Long term loans are loans that take a more extended period to get repaid. This means that it may take more than five years to repay long-term loans.

To get a clearer picture, let’s explain using a business. Business A needs funds to purchase plants and machinery and finance a project.

Instead of waiting until they get the funds from their proceeds and stand a chance of being knocked out by their competitors, they opt for long-term loans from the bank or any other financial institution and then repay the loan in installments which could be monthly, quarterly, half a year or even yearly.

This loan can last for five to ten years, depending on the agreement. However, most banks may not finance a hundred percent of the project. They only care for 70% of the project, while the company or individual takes 30%.

Types Of Long Term Loans

There are different types of long-term loans offered in Nigeria. We can further group them into two, which are;

  • Individual long-term loans and
  • Business and long-term corporate loans

Let us quickly look at each group carefully and their examples. Keep reading…


This group of long-term loans is specifically made for specific individuals, especially those who have a high net worth. These loans are provided for this set of individuals to enable them to solve their personal problems. Their examples are;

  • Home Loan

This type of individual long-term loan is available for individuals who want to acquire home properties but do not have the necessary funds to finance them. The bank funds a certain percentage while the individual funds the rest, usually a 70/30 proportion.

This loan is specifically for home furnishing. The amount of loan to be issued is dependent on the ability of the individual to repay.

This loan type is made available to qualified individuals for personal reasons. The qualification is usually a regular salary or cash flow and the ability to repay loans.

For individuals intending to purchase a car. The ability to repay the loan when due determines the amount of loan you can access.

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Business Or Corporate

This group of loans is specifically made available for businesses and corporate bodies. These loans are granted based on the ability of the loans to reimburse the loans. They are further divided into the following loans;

  • Commercial mortgage

This loan is for mortgages. This bank or financial institution only funds a certain percentage.

  • Equipment lease finance

In terms of acquiring or renting equipment, businesses that do not have the required resources can opt for an equipment lease finance loan.

  • Project finance

Project finance is another type of business long-term loan. Businesses or corporate bodies can apply to banks for funds to finance a specific project. The bank reviews the project and funds it if it meets their standard. However, only a certain percentage is funded while the business takes care of the rest.

  • Operational vehicle finance

For businesses looking towards getting an operational vehicle, this loan is highly recommended.

  • Asset/ office equipment finance

Businesses with the quest to acquire office equipment or assets can take advantage of this loan while repaying based on the agreement.

  • Bill discounting

Bill discounting is a form of business loans that helps businesses and corporate bodies to take care of their bills.

Where To Get Long-Term Loans In Nigeria

You can access long-term loans as an individual, business, or corporate body from any of the commercial banks in Nigeria and other financial institutions.

We advise that you take your time to compare the loan limits of each institution, their repayment term, interest rates, and additional charges.

Feel free to apply for your desired long-term loans in any of the commercial banks in Nigeria to inquire about the different loan schemes available.

Documents Required

The following documents are generally required for obtaining long-term goals. However, know that these may vary within banks or financial institutions.

  • Application letter
  • All duly completed retail loan application forms
  • Proforma invoice approved by vendors supplying goods for your business
  • Company profile
  • Current utility bill
  • Last audited account
  • Previous six months’ bank statement
  • Cash flow budget
  • Certificate of incorporation
  • Proof of address
  • KYC requirements necessary for opening an existing account
  • Details of collateral where applicable
  • Third-party guarantors.

How To Apply For Long Term Loans In Nigeria

All commercial banks in Nigeria offer long-term loans following the guidelines and stipulations of the Central Bank of Nigeria (CBN). Aside from banks, other financial institutions also provide long-term loans.

To apply for long-term loans in Nigeria, you must visit any of these institutions physically in any of their branches or apply online via their websites.

Interest Rate

The interest rate of long-term loans depends heavily on the following;

  • The bank offering the loan
  • The amount borrowed
  • The ability and capacity to repay loans
  • The repayment terms

Do Long Term Loans Require Collateral?

Yes, almost all lenders request collateral as a prerequisite for issuing loans, while some require guarantors. Meanwhile, some demand both collateral and guarantors.


Long-term loans take a longer time to repay and are advantageous to both individuals and businesses. Commercial Banks and other financial institutions offer long-term loans, and the amount accessible depends on your ability to repay when due.

You can apply for individual or business long-term loans by visiting the bank today or online via a website or digital banking platforms.