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Complete List Of Top 10 Commercial Banks In Nigeria And Their Loan Interest Rates

Nigeria's banking sector is a dynamic and integral component of its economy, offering a range of financial services to individuals and businesses. Among these services, loans are pivotal, enabling economic growth and personal financial management. Interest rates on these loans vary across banks and are influenced by factors such as the Central Bank of Nigeria's (CBN) monetary policy, the type of loan, and the borrower's creditworthiness.

As of January 2025, the CBN's Monetary Policy Rate (MPR) stands at 26.75%, following a series of hikes aimed at curbing inflation and stabilizing the economy. 

 This benchmark rate significantly impacts the lending rates of commercial banks, which typically set their interest rates above the MPR to cover operational costs and profit margins.

Below is an overview of the top 10 commercial banks in Nigeria, their loan interest rates, and their asset standings:

1. Access Bank

Access Bank is Nigeria's largest bank by assets, totaling approximately ₦32.57 trillion as of March 2024. 

 The bank offers a variety of loan products with interest rates generally ranging from 18% to 24% per annum for personal loans, 15% to 28% for business loans, 16% to 22% for car loans, and 18% to 23% for mortgage loans. 

2. United Bank for Africa (UBA)

UBA holds the position of the second-largest bank in Nigeria, with assets amounting to ₦25.37 trillion as of March 2024. 

 The bank's loan interest rates are competitive, with personal loans ranging from 19% to 26% per annum, business loans from 18% to 28%, car loans from 16% to 24%, and mortgage loans from 20% to 25%. 

3. Zenith Bank

Zenith Bank ranks third in terms of assets, which stood at ₦24.28 trillion as of March 2024. 

 The bank offers personal loans with interest rates between 15% and 22% per annum, business loans from 17% to 25%, car loans from 14% to 18%, and mortgage loans from 18% to 22%. 

4. First Bank of Nigeria

First Bank's assets were reported at ₦21.58 trillion as of March 2024. 

 The bank provides personal loans with interest rates ranging from 20% to 26% per annum, business loans from 20% to 28%, car loans from 15% to 23%, and mortgage loans from 19% to 25%. 

5. Guaranty Trust Bank (GTBank)

GTBank's assets were approximately ₦13 trillion as of March 2024. 

 The bank offers personal loan interest rates between 14% and 22% per annum, business loans from 15% to 24%, car loans from 15% to 20%, and mortgage loans from 16% to 23%. 

6. Stanbic IBTC Bank

Stanbic IBTC is known for offering competitive interest rates, with personal loans ranging from 18% to 22% per annum, business loans from 17% to 26%, car loans from 15% to 20%, and mortgage loans from 15% to 22%. 

7. Union Bank

Union Bank provides personal loans with interest rates between 20% and 24% per annum, business loans from 19% to 27%, car loans from 16% to 23%, and mortgage loans from 20% to 24%. 

8. Fidelity Bank

Fidelity Bank offers personal loan interest rates ranging from 18% to 25% per annum, business loans from 19% to 28%, car loans from 17% to 22%, and mortgage loans from 18% to 24%. 

9. Ecobank Nigeria

Ecobank's personal loan interest rates range from 19% to 26% per annum, business loans from 20% to 28%, car loans from 17% to 23%, and mortgage loans from 19% to 25%. 

10. Sterling Bank

Sterling Bank provides personal loans with interest rates between 20% and 27% per annum, business loans from 20% to 28%, car loans from 18% to 24%, and mortgage loans from 20% to 26%. 

Factors Influencing Loan Interest Rates

Several factors influence the interest rates offered by these banks:

• Monetary Policy Rate (MPR): Set by the CBN, the MPR serves as a benchmark for lending rates. An increase in the MPR often leads to higher loan interest rates across commercial banks.

• Creditworthiness: Borrowers with a strong credit history and high credit scores are more likely to secure loans at lower interest rates.

• Loan Type and Tenure: Interest rates can vary depending on the type of loan (personal, business, mortgage, etc.) and the loan duration. Generally, longer-term loans may attract higher interest rates due to the increased risk over time.

• Bank's Risk Assessment: Each bank has its risk assessment criteria, which can influence the interest rate offered to a borrower.

Conclusion

Understanding the loan interest rates offered by Nigeria's top commercial banks is crucial for making informed borrowing decisions.