7 Best Banks and Companies for Car Loans in Nigeria (Apply Now)

Are you interested in the best banks and companies for car loans in Nigeria?

If YES, then this article is only what you need to read today.

Getting started…

What is a Car Loan?

A car loan is a kind of loan you take to buy a new or used car, also known as a ‘Tokunbo’ car.

The important thing to note with car loans is that the purchased car is the collateral.

Think of it as borrowing money to buy a car, but the lender owns the vehicle until you pay back the money you borrowed.

If you don’t pay all the money you owe in the specified period, the lenders seize the car; it’s that simple.

Another option is to take a collateral-free car loan, where your car or any other asset is not used as collateral.

Although there are advantages to a collateral-free car loan, the disadvantage is that the interest rate is usually higher.

The interest you agree to pay is where the lenders profit from borrowing you money for the car.

What to Consider Before Choosing a Car Loan in Nigeria

Car loans, which are also called Automobile loans, vehicle loans or Auto-Loans, can be tricky to understand when it comes to interest rates.

You can end up with a poor car loan choice if you do not understand the terms used in the industry.

Interest rates to expect on car loans depend on several factors.

It is important to understand these factors before applying for a car loan:

  • Down Payment
  • Annual Percentage Rate (APR)
  • Monthly payment during the loan term

Down Payment is usually a portion of the car price that you need to supply yourself.

With a car loan, where the car is used as collateral, the lender usually only loans a portion of the total price.

The larger your down payment, the less loan you need and the less you need to pay in interest rate.

On some occasions, you can trade in an old vehicle alongside the down payment to lessen the loan amount required.

The annual percentage rate is one of the most important factors to consider because it is vital to understand how much interest you will have to pay during the loan term.

Most car lenders tell you to pay less money back monthly, which increases your loan term.

This way, you end up paying more interest in the long run.

As a rule of thumb, it is usually cheaper to pay back the loan quickly.

For example, you take a ₦1,000,000 car loan at a 2.00% APR in a 4-year term.

Over 48 months, you’ll pay approximately ₦40,000 in interest on the loan.

If you now decide to pay back the same loan over a period of six years with the same APR, you will be paying less back monthly, but the interest you’ll pay at the end of the day will now be approximately ₦60,000 for the same loan amount.

Interest Rates to Expect for a Car Loan

Interest rates on car loans range from 17% to 30% per year in Nigeria for banks.

These high interest rates result from many factors that cannot be avoided due to the current state of things in Nigeria.

Reasons to Apply for Car Loans in Nigeria

You can get a car loan if you need a car, and you have a steady source of income.

This source of income should allow you to pay back monthly for the entire loan term.

Even if you already have a car, but you want to upgrade, you can take a car loan.

Car loans are the best types of loans to take to buy a new car.

Car loans use the car you’re buying as collateral till you’re able to pay the lenders back with the agreed interest.

The presence of the car as collateral offers you a lower interest rate as compared to other loan types.

7 Best Car Loans in Nigeria

1. CIG Motors Car Loan

Car loan enables you to own a car today for as low as ₦195,000 monthly payment!

The “Easy Buy Finance” scheme, a vehicle finance scheme in partnership with Choice International Group (CIG) Motors, aims at assisting you to buy GAC vehicles with ease and at affordable prices with a flexible repayment plan.

This facility is customized for salary savings or current account customers to buy motor vehicles.


  • The scheme enables individuals who meet the prescribed conditions to pay an equity contribution of 10% with a 48-month tenor payment.
  • Covers 3 ranges of sport utility vehicles in the GAC fleet, GS3, GS4 and GS8.
  • 15% discount off the current market cost of the vehicles.
  • Suitable for customers’ needs with manageable monthly repayments.
  • Best suited for individuals, organizations, corporate bodies, and institutions as an easy and convenient means to own a brand-new car.

2. Betacar Financing

Betacar Financing gives salary earners and registered business owners in Nigeria the opportunity to buy quality certified used cars and pay over a period of 12-24 months.

Over the years, Nigerians have had to sacrifice quality for affordability.

Betacar believes that these two should be mutually inclusive.

Betacar financing is leading the charge to help Nigerians access the best of both worlds – Quality cars and Payment convenience!

How it Works

  • Search for available cars to select your preferred car.
  • Use the simple car loan calculator on your selected car to check the upfront deposit required, the monthly repayment, and the period of payment.
  • Click on the “Apply for Loan” button and fill the pre-approval assessment form.
  • You will get an approval or rejection email within 10 minutes.
  • If approved, you will get an email listing the documents needed, so start preparing all your documents.
  • Visit Betacar HQ office for inspection and test drive.
  • Scan all required documents and submit.
  • The team will review and let you know once your application package is completed … And you are all set!

The best part is your car should be ready for pick up within one week after submission of complete package.

3. FirstBank Auto Loan

The Automobile Loan product (Auto Loan) gives salaried individuals in paid employment the opportunity to acquire brand new vehicles from reputable vendors with a flexible repayment plan over a period.


  • Maximum loan amount of ₦20 million.
  • Up to 48 months tenor (four years).
  • Equity contribution is 30% of invoice value.
  • Finance available only for brand new vehicles.
  • Open to salaried income person whose salary is domiciled in First Bank or who want to move salary account to First Bank.
  • Flexible repayment structure.
  • Highly competitive interest rates.
  • Access to a wide range of vehicle brands and models.


  • A year free car servicing or car serviced at 15,000km mileage (whichever comes first).
  • Free fuel card available for one year.
  • Free car registration.
  • Three-year manufacturer’s car warranty.

Required Documents

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

To apply for the FirstBank Auto loan, download the auto loan application form, complete the form, and submit it to the nearest FirstBank branch.

4. FCMB Auto Loan

Own your dream car and conveniently spread the payments over a period.

This is a consumer credit scheme which allows qualified individuals to part-finance the acquisition of cars for personal use.

Customers can own a car and pay over a period.

It enables customer purchase vehicles from auto dealers who have been prequalified and have agreed an SLA with the bank.


  • Interest rate as low as 29.5%.
  • Borrow ₦500,000 to ₦30,000,000.
  • Payment over 12 to 60 months.
  • Contribute as low as 20% towards the purchase.
  • Comprehensive Insurance on the car for the entire loan period.
  • No security required.
  • Competitive pricing and no hidden charges.


  • Installation of free tracking device for auto valued at ₦3,000,000 and above.
  • Buy a car of your choice from our list of acceptable brands and spread payment over a convenient period.
  • They are reliable dealers accredited to ensure you buy from a safe source.
  • Convenient insurance payment included in the loan repayment amount.
  • No residual cost at end of loan.


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

5. Autochek Africa

Autochek Africa is an automotive technology development company that builds solutions aimed at enabling and enhancing commerce within the automotive sector.

The company focuses on solutions that improve access to Auto loans, quality maintenance/aftersales services, warranty solutions, and transactional marketplaces.

How does the autochek financing work?

Fill up a short form and select from a personalized inventory selection.

Apply for a loan and start receiving offers from various autochek approved financing partners.

Confirm acceptance of an offer and get the car delivered to you in 5 – 7 days

Some of the makes available for finance are – Toyota, Mercedes, Lexus, Hyundai, Kia, Nissan, Volkswagen.

If you don’t find the car of your choice, please contact the one meeting your needs will be sourced.

You can apply for multiple cars without collateral provided your income can support finance repayments.

To make it convenient and hassle free for our customers, all autochek financed cars are bundled with insurance, registration, and annual maintenance services accessible at a nearest autochek center.

A specialist service advisor would be assigned to you to ensure that your car is maintained at regular intervals.

Home pick and drop service is also offered.

What is the Minimum Equity Contribution?

The minimum equity contribution is 30%.

The actual equity terms would be clearly laid out in the loan offer received.

6. UBA Auto Loan

Whether it’s your first car or you want to upgrade to a higher model, the UBA Auto Loan product enables you to drive your dream car, while you repay conveniently.

Approved brands are Toyota, Honda, Mitsubishi, Hyundai, Mercedes, Nissan, Ford, Suzuki, Kia, and Volkswagen.

Product Features and 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 ₦15m.
  • Minimum equity contribution of 30%.
  • Mandatory comprehensive insurance and vehicle tracking.

Eligibility Criteria

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

How to Apply

  • Visit any of the approved auto vendor stores to obtain pro-forma invoice (PFI) for preferred items.
  • Visit a UBA branch to complete a loan application form.
  • Execute an offer letter detailing the loan terms and requirements, following approval of the loan.
  • Pick up your preferred automobile from the auto vendor.

7. GTBank Vehicle Insurance Premium Financing

Vehicle insurance premium financing is a time loan that enables corporate organizations and salary owners (whose accounts are domiciled with the bank) to pay for their motor insurance premium upfront and spread the repayment over a 12-month period.


  • Loan Amount: Individuals – ₦20,000 – ₦1,000,000 (Individuals) and ₦20,000 – ₦5,000,000 (Corporate).
  • Tenor: Maximum of 1 year.
  • Pricing: Interest Rate is 1.67% per month.
  • Repayment: Equal monthly repayment comprising principal and interest.
  • Equity Contribution: 20% of total insurance premium cost.
  • Fees: 1% one-off flat fee.

What’s in it for you?

  • Instant availability of funds to pay for insurance premiums.
  • Opportunity to pay for insurance premium on monthly basis.
  • Insurance cover without physically visiting insurance office.

Who Can Apply

  • Individual customers whose salary accounts are domiciled with the bank.
  • All SME’s and corporates with accounts domiciled with the bank and with access to GAPs.

You can apply for the Vehicle Insurance Premium Financing on Internet Banking or on GAPS.

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Saint Chinedu

My GOAL is to equip you with the right strategy and working information to improve your academic performance, financial situation, and health this month.


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