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
Nigerian car loans usually run from 12 up to 60 months: Access Bank lists up to 60 months, Stanbic IBTC up to 5 years for cars, and Sterling 48 months for new and 36 for used vehicles (October 2026). A longer tenure lowers the monthly payment but raises total interest sharply; on a ₦16 million example loan at 30%, moving from 36 to 60 months cuts the instalment by about ₦161,571 but adds about ₦6.6 million in interest.
What tenures lenders offer
Tenure is the number of months you have to repay. Banks set a maximum per product, and then a lower limit can apply because of your age, your remaining years at work or the age of the car. As at October 2026, the bank pages we checked show:
| Bank | Maximum tenure stated | Note |
|---|---|---|
| Access Bank (Vehicle Finance) | Up to 60 months | Early repayment without penalty |
| Stanbic IBTC (Vehicle and Asset Finance) | Up to 5 years for cars | Generators 36 months, inverters and solar 24 months |
| Sterling Bank (Vehicle finance) | 48 months new, 36 months used | Equity 20% new, 30% used |
Microfinance banks, dealer schemes and hire purchase firms often offer shorter terms, commonly one to three years, because their funding is shorter. Ask each lender for its maximum before you shortlist cars.
Vehicle age limits
A car is security that loses value every year. Lenders do not want a loan to outlive the car’s useful value, so they cap the vehicle’s age at the start, at the end of the loan, or both. Stanbic IBTC will not finance used vehicles over 20 years old or with over 120,000 km. Sterling allows used cars but shortens the tenure to 36 months and asks for more equity. In practice, the older the tokunbo, the shorter the term you will be offered. See tokunbo and used car loans.
The trade-off in numbers
Example only. Borrowing ₦16,000,000 at an example rate of 30% a year on a reducing balance. Fees and insurance are left out so the effect of tenure is clear.
| Tenure | Monthly payment | Total repaid | Total interest |
|---|---|---|---|
| 12 months | ₦1,559,794 | ₦18,717,528 | ₦2,717,528 |
| 24 months | ₦894,605 | ₦21,470,523 | ₦5,470,523 |
| 36 months | ₦679,225 | ₦24,452,108 | ₦8,452,108 |
| 48 months | ₦576,096 | ₦27,652,603 | ₦11,652,603 |
| 60 months | ₦517,654 | ₦31,059,260 | ₦15,059,260 |
Going from 12 to 24 months almost halves the payment. Going from 48 to 60 months saves only about ₦58,442 a month but adds about ₦3.4 million in interest. The monthly saving shrinks as tenure grows, while the interest cost keeps climbing. For context, the CBN’s average maximum lending rate was 29.20% in August 2026; your own rate is set by the lender (car loan interest rates).
Short or long: two drivers compared
Consider two buyers of the same car with the same loan. Ada is on a fixed civil service salary and expects to keep the car for eight years. Tunde runs a shop with uneven income and plans to upgrade in three years.
Ada can sensibly take a longer tenure if the payment fits and early repayment is free: the car will outlast the loan and she can overpay in good months. Tunde is better served by the shortest tenure he can carry. If he sells the car in year three with two years still owing, the sale price may not clear the balance, and he must find the difference before the lender releases the papers to the buyer.
The rule that falls out of this is simple: the loan should end well before you expect to part with the car. Lenders build a similar logic into their vehicle age limits, and it protects you as much as it protects them.
How to choose a tenure
- Work out the highest monthly payment you can carry comfortably, leaving room for fuel, servicing and insurance renewal.
- Choose the shortest tenure whose payment fits that figure.
- Check whether the lender allows early repayment without penalty. Access Bank says it does; if your lender also does, a slightly longer tenure gives a safety margin and you can pay down faster when you can.
- Match tenure to how long you will keep the car. Paying for a car you have already sold, or that is worn out, is the trap.
- Remember insurance renews every year of the loan, so a longer tenure means more years of compulsory comprehensive cover.
Other things tenure affects
- Insurance and tracker costs recur for each year the loan runs.
- Rate changes. If your loan has a variable rate, a longer tenure exposes you to more rate reviews. Ask whether the rate is fixed.
- Your age. Many banks require the loan to end before a set age; see age limits for bank loans.
- Negative equity. On long loans for used cars, you can owe more than the car is worth for much of the term.
Where Pryme fits
A bigger equity payment is the surest way to shorten tenure. A Naira Savings Box keeps that money ring-fenced while you build it, and the Personal Assistant can remind you of each repayment date, with nothing moving until you approve.
Questions people ask
What is the maximum car loan tenure in Nigeria?
Commonly 60 months at banks. Access Bank lists up to 60 months and Stanbic IBTC up to 5 years for cars, as at October 2026. Used cars often get shorter terms.
Is a 60-month car loan a good idea?
It lowers the monthly payment but greatly raises total interest. In our example, 60 months costs about ₦3.4 million more interest than 48 months.
Can I repay my car loan early in Nigeria?
Many lenders allow it; Access Bank states pre-liquidation without penalty. Confirm the early repayment terms in your offer letter.
Why do banks give shorter tenure for tokunbo cars?
Used cars lose value and have age limits. Stanbic IBTC will not finance used cars over 20 years old or 120,000 km, and Sterling caps used-car loans at 36 months.
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.