For the manufacturing industry to thrive effectively, they rely on aid from financial institutions. Loan requests come with interest rates for these industries. High lending rates decrease demand and supply whilst low lending rate increases aggregate demand.
Hence, it’s only natural that manufacturers and business owners would prefer and move to banks that offer loans with lower rates, as it aids more production.
In this article, we’ll be looking at the top 5 banks in Nigeria with the lowest lending rates.
What are lending rates?
For an in-depth understanding, you could think of lending rates as rates charged on loans given to the private sector; manufacturers and business owners, by banks.
These loans are mostly short and medium-term loans. It’s determined by a couple of factors ranging from the credit score of the parties who intend to borrow funds to the aims or reasons behind the need for the loan. This also differs from bank to bank.
Read Also: 10 Stockbrokers at NGX Responsible for More Than 50% of Traded Value, Worth Over $1B.
Top Five Banks in Nigeria with the Lowest Rates
As we mentioned previously, there are a couple of factors behind the lending rates. So, these banks can issue prime lending rates or maximum lending rates.
The prime rates are the rates banks charge creditworthy customers, and the maximum rate is that rate, which banks charge customers with low credit ratings.
So, as some businesses struggle to keep up with being charged lending rates as high as 48%, here are the top five banks with the lowest rates in the country.
- FBN Quest Merchant Bank with a rate of 7%.
- Polaris bank ay 8%.
- Stanbic at 8%.
- WEMA Bank at 9%.
- Zenith Bank at 10%.
Final Thoughts
According to the listing above, FBN Quest Merchant Bank is the most viable option for manufacturers and business owners in the industry.
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