We will examine Lcredit loan interest rates and their calculation in-depth in this article.
Lcredit is a well-known online lender in Nigeria that provides quick and simple access to loans for both private citizens and small businesses.
However, it’s crucial to comprehend the interest rates and additional fees that could be incurred before applying for a loan from Lcredit.
Rate of Interest and Service
Loans from Lcredit are available with interest rates ranging from 10% to 25% annually. The daily calculation of the interest rate means that the actual interest rate you pay will vary depending on the length of the loan and the amount borrowed.
Lcredit assesses a service fee in addition to the interest rate that ranges from 0.1% to 1% of the loan amount.
You will receive the loan amount less the service cost since the fee is deducted upfront from the loan amount.
Loan Term Scope
Lcredit provides loans with 91 to 180 day terms for payback. The interest rate and total amount you will pay back depend on the loan period you select.
It’s crucial to remember that Lcredit levies penalties for late or unpaid payments, so it’s best to repay the loan on time to avoid paying extra fees.
How Interest and Service Fees Are Calculated by Lcredit
Let’s use the example of a 91-day loan with a principal amount of NGN 30,000 to better understand how Lcredit determines the interest and service fees for a loan.
5.7% of the principle amount, or NGN 1,150, is the origination cost.
Interest: NGN 3000 or 2.7% of the principle amount
The principal amount, origination charge, and interest together make up the total amount owing for this loan, which comes to NGN 4,150.
Managing Your Lcredit Loan: Some Advice
Here are some suggestions to assist you efficiently manage your loan if you plan to borrow money from Lcredit:
- Lcredit offers loans from NGN 1,000 to NGN 2,000,000; only borrow what you need. However, it’s crucial to only borrow what you actually need and can afford to repay.
- Pay on time: If you pay late or default, penalty penalties may apply that might raise the total amount you owe.
- The terms and conditions should be read and understood: Make sure you read and comprehend the terms and circumstances, including the interest rate, repayment duration, and any fees that may be applicable, before accepting a loan.
- Plan your budget: Making sure you can repay the loan on time without interfering with other financial commitments requires careful planning.
Lcredit is a well-known online lender in Nigeria that provides loans at affordable interest rates.
Understanding the interest rate and other fees that could be incurred is essential when applying for a loan from Lcredit.
You may properly manage your Lcredit loan and prevent racking up additional fees by using the advice in this article.