In Nigeria’s current economic situation, many people depend on loans for financial support. Loans help individuals and businesses manage unexpected expenses. But what exactly is a loan?
A loan is a sum of money that individuals or companies borrow from banks or digital financial institutions. This borrowed amount is repaid over time with interest, under specified conditions.
Types of Loans and Their Purpose
Loans come in various types, each suited for specific financial needs. People and companies take out loans to meet immediate financial requirements or fund larger projects.
Understanding KwikPay Short Loans
KwikPay short loan is designed to meet temporary financial needs, usually with a smaller loan amount between ₦10,000 and ₦100,000. This type of loan typically has a shorter repayment period. However, not many digital lenders offer extended tenures on short loans—Kwikpay Credit is an exception.
Benefits of a Longer Tenure for Short Loans
Opting for a longer tenure on a short loan offers several advantages:
1. Flexibility in Repayment
A longer tenure allows you to repay your loan without feeling rushed. Instead of needing to settle the loan quickly, you can choose to make small payments over time or even pay off the loan early to boost your credit score.
2. More Cash for Other Needs
With a longer tenure, you have more financial freedom. This flexibility can allow you to take on additional small projects without the strain of an impending loan deadline.
3. Ease of Partial Payments
Extended tenures allow for gradual payments, making it easier to handle financially. This incremental approach reduces the stress of repaying all at once.
4. Improved Affordability
Lower monthly payments with a longer tenure make it easier to manage finances. This minimizes the risk of default.
5. Reduced Financial Strain
Spreading payments over a longer period reduces financial stress. You won’t feel pressured to pay off the entire loan immediately.
6. Lower Default Risk
A longer tenure decreases the likelihood of missing payments, which helps protect your credit score and financial reputation.
7. Positive Impact on Credit Score
Making consistent payments on a loan with a longer tenure can improve your credit score over time. Each timely payment boosts your credit history, making you a more attractive borrower in the future.
Click here to learn more about the benefits of choosing KwikPay Credit for your business loan.
KwikPay Credit’s Unique 62-Day Repayment Option
Trafalgar Associates Limited, approved by the Federal Competition and Consumer Protection Commission (FCCPC) as a legal digital lender in Nigeria, offers Kwikpay Credit—a unique loan product with a 62-day repayment option for short loans. While many lenders limit repayment to 7 to 15 days, KwikPay’s 62-day option provides a more flexible and accessible solution.