The frantic search for capital to quickly inject into their businesses and constraints to traditional funding has brought digital lending, amongst other financing options, to the fore. The flexibility, lower interest rates, ease, and speed of digital lending, compared with traditional financing, has increased its attractiveness amongst SMEs searching for capital.

However, there is currently no specific legislation on digital lending in Nigeria. Thus, digital money lenders are forced to operate within the extant moneylending laws of the States, which are modelled after the UK’s Money Lenders Act, 1927.

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