Omotoyosi Popoola
Dec 4, 2025
What are the 7 types of loans? The major loan categories people in Nigeria search for when looking for instant loans, online loans, low-interest loans, personal loans, and loan apps in Nigeria. Whether you need an urgent loan, a loan without collateral, or you’re simply comparing the best loan apps and repayment options, this article explains each loan type in clear, simple language. We shared how the loans work, who they’re meant for, key requirements, and which loan apps or financial platforms are best suited for each category.
What are the 7 types of loans Nigerians should know about?
When people search for “urgent loan,” “best loan apps,” “instant loan apps,” or “a loan without collateral,” what they really want is clarity. Which loan should you choose? Which one is safe? Which one gives money the fastest? This blog breaks everything down in simple terms.
1. Personal Loans
Personal loans are the most common type of online loans people search for. They’re flexible; you can use them for bills, emergencies, shopping, rent, or business.
How do personal loans work?
A lender gives you money, and you pay back with interest over a set period. These loans are available on many loan apps in Nigeria, especially instant loan apps.
Pros of personal loans
No collateral needed
Flexible usage
Available on quick loan apps in Nigeria
Best option?
Instant loan apps provide low-interest loans with fast approval and zero paperwork.
2. Salary Advance Loans
These loans help salary earners access part of their pay before payday.
Who are they best for?
People facing unexpected expenses: utility bills, medical needs, or school fees.
Why Nigerians love salary advance loans
Fast approval
No collateral
Works well for payday emergencies
QuickCheck provides trusted salary advance loans for employees:
No collateral needed
Funds disbursed within minutes
Repayment from your next salary or manually
This makes QuickCheck a go-to platform for urgent loans and instant cash when emergencies strike.
3. Business Loans
Businesses, small or large, often need capital to run operations.
Types of business loans
SME loans
Working capital loans
Micro-business loans
Common question:
Can small businesses get a loan without collateral?
Yes. Some loan apps give micro-business loans without collateral, based on repayment history.
4. Student/Education Loans
Tuition keeps rising, and many Nigerian students need support.
Why they're important
Help cover tuition
Support professional certifications
Sometimes offers low interest
Where can students get them?
Banks, government schemes, and approved online loan platforms.
5. Auto/Car Loans
Many Nigerians now finance cars via structured loan plans.
How do car loans work?
A lender pays for the car, and you repay monthly over a fixed period.
Popular question:
Can I get an auto loan without collateral?
Usually, NO, the cars themselves often act as collateral.
6. Mortgage/Home Loans
These loans help buyers own a home through long-term payment plans.
Why mortgages matter
Spread payments over years
Lower monthly burden
Helps more Nigerians buy real estate
7. Emergency or Urgent Loans
This is the category behind millions of Google searches like:
“instant loan”
“urgent loan in Nigeria”
“best loan apps”
Why are urgent loans so popular
Fast approval
Minimal paperwork
Perfect for emergencies
Usually available on instant loan apps
Quick Comparison Table
Loan Type | Collateral Required? | Speed | Best For |
Personal Loan | No | Fast | Bills, emergencies |
Salary Advance | No | Very Fast | Salary earners |
Business Loan | Sometimes | Medium | SMEs |
Student Loan | No | Slow | Tuition |
Auto Loan | Yes | Medium | Buying a car |
Mortgage | Yes | Slow | Home purchase |
Urgent Loan | No | Instant | Emergencies |
How to Choose the Right Loan Type
1. Do you need the money immediately?
Go for instant loan apps.
2. Do you want low-interest loans?
Compare APRs and repayment terms across major loan apps in Nigeria.
3. Do you want a loan without collateral?
Personal, emergency, and salary advance loans are your best options.
4. Are you building your credit score?
Pick an instant loan app in Nigeria with responsible reporting and flexible repayment.
FAQs
1. Which loan app does not require collateral?
Most digital lenders, including QuickCheck, offer loans without collateral.
2. What is the best instant loan app in Nigeria?
Users often seek fast approval, low interest rates, and minimal regulation. QuickCheck remains one of the top options.
3. Can I get a loan without BVN?
No. Your BVN (Bank Verification Number) is required for verification and security purposes. Ensure that you sign up using the phone number linked to your BVN.
4. Is my data safe with QuickCheck?
Absolutely! QuickCheck is fully NDPA (Nigeria Data Protection Act) compliant and committed to safeguarding your data and privacy.
