Car loans in Nigeria: Compare 7 banks, deposits, interest rates and repayment plans

Several Nigerian banks offer car loans to help individuals and businesses buy new or used vehicles without paying the full cost upfront. Access Bank, First Bank, UBA, Zenith Bank, Stanbic IBTC, Wema Bank and FCMB all have structured packages with different loan amounts, interest rates, deposits and repayment periods.

Applicants generally need salary domiciliation, proof of income and a vehicle quotation, while some banks require as little as 10% equity contribution. Here is a breakdown of what each bank offers.

Bank-by-bank breakdown

Access Bank (Vehicle Finance): Minimum equity contribution is 10%, meaning the bank finances up to 90% of the vehicle value. Maximum tenor is up to 48 months. Interest rate is 22% per annum. Processing target is 72 hours using the QuickBucks platform. Access Bank offers discounted interest rates for women-owned businesses and female salary earners, and works with Elizade JAC Autoland for passenger vehicles.

First Bank of Nigeria (Automobile Loans): Equity contribution is 30% of the invoice value. Maximum loan amount is up to ₦75 million. Maximum tenor is up to 48 months. Eligibility is restricted to individuals whose salary accounts are domiciled with First Bank, or those willing to transfer them. Loans are valid only for vehicles.

Stanbic IBTC Bank (Vehicle and Asset Finance): Equity contribution is 10% of the asset value. Maximum tenor is up to 60 months (five years) for cars. Both brand-new and pre-owned vehicles are eligible.

Wema Bank (Wema Asset Acquisition Scheme): The standard vehicle loan offers up to ₦50 million maximum, with a 36% interest rate per annum. Tenor is 36 months for pre-owned cars and 48 months for new cars. The Easy Buy Finance option is a partnership with Choice International Group (CIG Motors, which handles GAC vehicles). It provides a 15% discount on the market cost of the car, requires a 10% equity contribution, and features a 48-month payment plan.

United Bank for Africa (UBA Auto Loan): Maximum loan amount is up to ₦75 million. Eligible vehicles are pre-owned. Requirements include a letter of introduction or awareness from your employer alongside a valid salary account.

Zenith Bank (Vehicle Financing for New Cars): Maximum tenor is three to five years. Monthly repayment must not exceed 33.3% of your turnover or income. Perks include free vehicle registration, free delivery within Nigeria, free servicing for the first three cycles, a five-year warranty, and auto insurance via Zenith General Insurance.

FCMB (Auto Loan): Maximum tenor extends up to 60 months through its Elizade JAC Autoland partnership. Perks include a free tracking device for vehicles valued at ₦3 million and above, with insurance premium costs built directly into the loan repayment structure.

What you need to qualify

While specifications change slightly by institution, all Nigerian banks demand the same foundation to clear a car loan:

Salary domiciliation: Your primary monthly salary must be paid into an account held with the lending bank.

Debt-to-income cap: Your total monthly debt repayments, including the car loan, cannot exceed 33.3% (one-third) of your net monthly income.

Employer documents: A Letter of Awareness or Letter of Introduction from your company's HR department is required.

Pro-forma invoice (PFI): You need a vehicle quotation obtained strictly from an approved partner car dealership of the bank, such as Elizade, CFAO, Mikano or CIG Motors.

For Nigerians considering car ownership, these loans offer a way to avoid draining savings. But compare the equity, interest rate and tenor carefully before committing, because the cheapest monthly payment is not always the cheapest loan overall.