AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A Nigerian car loan is a secured instalment loan: you pay an equity contribution (Access Bank says as low as 10%, Sterling lists 20% for new and 30% for used cars), the lender pays the dealer the balance, and you repay monthly over up to 36 to 60 months while the car stays insured and pledged to the lender. Ownership papers move fully to you only when the loan is cleared.
The basic structure
Almost every car loan in Nigeria, whether from a commercial bank, a microfinance bank or a dealer’s finance partner, is built from the same five parts. Knowing them lets you compare offers that look different on the surface.
- Equity contribution
- The share of the price you pay yourself, usually straight to the dealer or into the lender’s account before release. The lender finances the rest.
- Tenure
- How many months you repay over. Bank pages we checked list up to 36, 48 or 60 months depending on product and whether the car is new or used.
- Interest and fees
- An annual rate plus one-off charges such as a management fee, stated on the offer letter.
- Insurance
- Comprehensive motor insurance for the life of the loan, with the lender noted as having an interest in the car. Many banks also add credit life cover.
- Security over the car
- The lender keeps a claim on the vehicle until you finish paying, often with a tracking device fitted and the lender’s interest recorded on the papers.
What three bank pages actually say
These figures come from each bank’s own page as at October 2026. Banks change terms often, so treat them as a snapshot and confirm on the offer letter.
| Bank | Equity | Tenure | Other stated terms |
|---|---|---|---|
| Access Bank (Vehicle Finance) | As low as 10% | Up to 60 months | Up to ₦200m for pre-owned and ₦400m for brand-new; early repayment without penalty |
| Stanbic IBTC (Vehicle and Asset Finance) | 10% | Cars up to 5 years | Used vehicles over 20 years old and over 120,000 km are not financed; salaried Stanbic account needed |
| Sterling Bank (Vehicle finance) | 20% new, 30% used | 48 months new, 36 months used | 39% a year, 1% management fee, insurance listed at 5% of vehicle value |
For context, the Central Bank of Nigeria’s money market indicators show an average maximum lending rate of 29.20% for August 2026, with the Monetary Policy Rate at 26.50%. Those are averages across banks, not a car loan quote; your rate depends on the product and your profile. More on how rates are set in car loan interest rates in Nigeria.
Insurance, tracker and papers in practice
The car is the lender’s security, so the lender protects it in three ways. First, comprehensive insurance must stay in force for the whole loan, and the policy notes the lender’s interest so that a claim for theft or write-off pays the lender first. Sterling’s page lists insurance at 5% of vehicle value, which shows how large this cost can be next to the interest. Second, many lenders fit a tracking device, sometimes at your cost, so the car can be located if repayments stop. Third, the lender keeps control of the documents, or has its interest recorded, until the final payment.
Ask who pays for the tracker and its yearly subscription, whether you may choose your own insurer, and how long after the last payment the lender releases the papers. These small items often decide whether two offers with the same rate really cost the same.
Who lends for cars
- Commercial banks. Usually the lowest rates for salaried customers whose salary is paid into the bank. Most want a pro-forma invoice from a recognised dealer.
- Microfinance banks and finance houses. Often more flexible on income evidence, typically at a higher cost.
- Dealer finance schemes. The dealer arranges finance with a partner bank or leasing company. Compare the total cost, not only the monthly figure; see dealer finance vs a bank car loan.
- Hire purchase and leasing firms. The firm owns the car until the last payment, which changes your legal position; see hire purchase for cars.
Steps from quote to keys
- Choose the car and get a pro-forma invoice in your name from the dealer. Banks finance against this document, so it must show the exact model, year and price.
- Apply with your ID, BVN, statements and income evidence (the full list is in car loan requirements in Nigeria).
- The lender runs credit bureau checks, confirms your employment or business income and works out what monthly repayment you can carry.
- You receive an offer letter showing amount, rate, fees, tenure and insurance. Read it in full before signing; this is the point at which you accept or walk away.
- Pay your equity contribution and arrange comprehensive insurance noting the lender’s interest.
- The lender pays the dealer, a tracker may be fitted, and the vehicle is registered with the lender’s interest recorded.
- You collect the car and repay monthly, usually by direct debit from your account.
Worked example: what a car really costs on credit
Example only. A ₦20,000,000 new car. You pay 20% equity (₦4,000,000) and borrow ₦16,000,000 at 39% a year, the vehicle rate on Sterling’s page, over 48 months on a reducing balance.
- Monthly repayment: about ₦662,771
- Total repaid over 48 months: about ₦31,813,020
- Interest paid: about ₦15,813,020
- Plus the 1% management fee (₦160,000) and yearly insurance on top
The interest alone comes close to the amount borrowed. That is why equity size and tenure matter so much: each extra year adds a year of interest. The trade-off is explained in car loan tenure: 12 to 60 months.
Where Pryme fits
Pryme does not offer car loans. What it can help with is the equity: a Naira Savings Box keeps the deposit apart from spending money while you build it, and a verifiable statement from Pryme with VerifyDoc.ai lets anyone confirm your statement is unaltered when a lender asks for proof of income.
Questions people ask
Can I get a car loan in Nigeria without equity?
The bank pages we checked all ask for an equity contribution, from as low as 10% at Access Bank to 30% for used cars at Sterling. A zero-equity car loan is unusual from banks; check any such offer carefully for higher rates or fees.
How long can a car loan last in Nigeria?
Access Bank lists up to 60 months, Stanbic IBTC up to 5 years for cars, and Sterling 48 months for new and 36 months for used vehicles, as at October 2026.
Who owns the car during a car loan?
You drive it, but the lender keeps an interest in the vehicle until the loan is repaid. Under hire purchase the finance company is the legal owner until the final payment.
Do banks finance tokunbo cars?
Some do. Access Bank finances pre-owned cars and Stanbic IBTC finances used vehicles that are not over 20 years old or over 120,000 km. Equity is often higher for used cars.
Sources
- Access Bank: Vehicle Finance · accessed Oct 2026
- Stanbic IBTC: Vehicle and Asset Finance · accessed Oct 2026
- Sterling Bank: Loans · accessed Oct 2026
- Central Bank of Nigeria: Money Market Indicators · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.