Car loan rules in Nigeria
- Banks quote car loans as a percentage per annum, often 22% to 36%. CBN consumer protection rules require a key-facts statement showing the total cost of credit.
- Some lenders and dealer schemes quote a flat rate, which charges interest on the full loan for the whole term. Choose “Flat rate” to see the true reducing-balance rate.
- Early repayment is allowed. Charges are negotiable under the CBN Guide to Charges and typically range from 0% to 3%. The example uses 1%.
Sources: Central Bank of Nigeria. Rules checked October 2026.
How to use this calculator
Choose Find my APR and enter the price, your down payment, the term and the monthly payment from your offer. The calculator works backward to the APR that lenders in Nigeria must disclose, and shows the same loan as a nominal rate, an effective rate and a flat rate. Choose Find my payment to turn a quoted rate into a monthly payment. All figures are in NGN and you can switch country at the top of the page.
Frequently asked questions
What interest rate do Nigerian banks charge on car loans?
Bank car loans are usually quoted between about 22% and 36% per annum, with terms of 12 to 48 months. Check whether the rate is flat or on a reducing balance.
How much equity contribution do I need for a car loan?
Banks usually ask for 10% to 30% of the car price as equity contribution, plus a management fee of about 1% and comprehensive insurance.
Is a flat rate cheaper?
No. A flat rate charges interest on the full loan for the whole term, so its real annual rate is close to double the quoted figure. Choose “Flat rate” in the calculator to convert it.