Buying a car with cash is out of reach for most Nigerians right now, which is why car loan Nigeria searches keep climbing. Tokunbo and new-car prices have moved sharply, and imports of vehicles surged in the first half of 2026, according to Nairametrics. But a bank loan is not cheap money. Before you sign, you need to know which banks lend, what they demand, and what the monthly repayment really does to your salary.
This guide uses terms published in Nigerian media reports (Legit.ng, August 2026, and nairaCompare, May 2026). Several banks do not publish their rates, so where a figure is missing we say so rather than guess.
Which Nigerian Banks Offer Car Loans in 2026?
Most car loans in Nigeria are salary-linked: the bank wants your pay going through its own account. Here is what was reported for each lender.
- Access Bank Vehicle Finance: minimum 10% deposit (the bank finances up to 90%), tenor up to 48 months, and a reported rate of 22% a year. Access says it targets 72-hour processing through QuickBucks and has discounted rates for women-owned businesses and female salary earners.
- Stanbic IBTC Vehicle and Asset Finance: about 10% deposit, up to 60 months for cars, covering new and pre-owned vehicles. nairaCompare says you need an account open for at least six months and three months of payslips. No rate was published.
- First Bank Automobile Loan: 30% of invoice value as equity, up to 48 months, available to individuals with salary accounts at First Bank. Reported caps differ by source (₦75 million in one report, ₦20 million in another), so confirm the current ceiling with the bank.
- Wema Bank: the standard vehicle loan is reported at up to ₦50 million over 36 to 48 months at 36% a year. A separate Easy Buy scheme with CIG Motors and GAC vehicles reportedly asks for 10% down over 48 months.
- FCMB Auto Loan: reported from 33.5% a year with a 20% minimum deposit and up to 60 months, for loans between ₦500,000 and ₦30 million, from pre-qualified dealers.
- UBA and Zenith Bank: UBA’s auto loan is reported for pre-owned vehicles with an employer letter and salary account. Zenith finances new cars over three to five years, with repayments capped at 33.3% of income.
The Rate Gap Is Huge: 22% vs 36%
The published rates range from 22% to 36% a year. That gap matters more than the brand of bank. To show the difference, here is an illustrative calculation (our own reducing-balance estimate, not a bank quote) for a ₦20 million car with a 10% deposit, so a ₦18 million loan over 48 months.
- At 22% a year: about ₦567,000 a month, roughly ₦27.2 million repaid in total, so about ₦9.2 million in interest.
- At 36% a year: about ₦712,000 a month, roughly ₦34.2 million repaid in total, so about ₦16.2 million in interest.
The same car costs you about ₦7 million more at the higher rate. Banks may calculate interest differently (flat versus reducing balance) and add management fees, so ask for the full amortisation schedule.
Can Your Salary Carry It? The 33.3% Rule
Banks commonly cap total monthly debt repayments, including the car loan, at about one third (33.3%) of net monthly income. Using the ₦567,000 example repayment, you would need a net income of roughly ₦1.7 million a month to qualify, before any other loans. A cheaper ₦10 million car with ₦9 million borrowed at 22% over 48 months works out to about ₦284,000 a month, needing roughly ₦850,000 in monthly income.
What Documents Do Banks Ask For?
- Salary domiciliation: your monthly pay routed through the lending bank.
- Employer letter: an introduction or awareness letter from HR.
- Pro-forma invoice: a quotation from an approved dealer. Banks often name partners such as Elizade, CFAO, Mikano or CIG Motors, and some schemes tie you to specific brands.
- Comprehensive insurance: nairaCompare reports that all listed lenders require it. See our guide on car insurance in Nigeria for what it costs.
- Bank statements and payslips: typically three to six months.
Hidden Costs Beyond the Monthly Repayment
The loan is only part of the cost of owning a car. Budget for these as well:
- Management or processing fees and credit life insurance (amounts vary, so ask for them in writing).
- Comprehensive insurance, which is mandatory on financed cars.
- Registration, plate numbers and licence renewals.
- Fuel, servicing and spare parts, which differ a lot by brand and are cheaper for popular models.
- A repair fund. If you buy used, set aside money for the first six months.
New Car Loan or Tokunbo? How to Decide
Dealer-backed schemes usually favour new cars with warranty and bundled insurance, which cuts early repair risk. Some banks (UBA, Stanbic) also finance pre-owned vehicles, but you must buy from an approved seller and the car should have clean customs papers. If you are comparing, read our breakdown of how tokunbo imports are priced and what clearing costs add.
How to Get the Best Deal: A Quick Checklist
- Compare at least three banks and ask for the effective annual rate, not just the headline.
- Put down more than the minimum deposit if you can. Every extra ₦1 million down reduces interest.
- Choose the shortest tenor you can afford. Longer tenors lower the monthly payment but raise total interest.
- Check for early-repayment penalties.
- Make sure the repayment, plus your rent and other debts, stays comfortably below one third of income.
Key Takeaways and FAQ
Key takeaway: the bank’s rate and your deposit decide the real price of the car. A 22% loan and a 36% loan can differ by millions of naira on the same vehicle.
What is the minimum deposit for a car loan in Nigeria?
Reported minimums range from 10% (Access Bank, Stanbic IBTC) to 20% (FCMB) and 30% (First Bank).
How long can I repay?
Between 36 and 60 months, depending on the bank and whether the car is new or used.
Do I need a salary account with the bank?
For most schemes, yes. Salary domiciliation is the most common requirement.
Can self-employed people get a car loan?
Some lenders, such as FCMB, say they serve self-employed customers with regular income, but expect stricter documentation.
Disclaimer: vehicle prices, import duties, loan rates and specs change frequently in Nigeria. The repayment figures above are illustrative estimates, not offers. Always confirm current figures with the bank, dealer or official source before buying.
