The Central Bank of Nigeria (CBN) in a recently released document titled Credit Conditions Survey, Q4 2020, has stated that unsecured credit card lending will increase in the first quarter of 2021 after they noticed a surge in demand for such loans in the final quarter of 2020.
“Demand for unsecured credit card lending from households increased in Q4 2020 and is expected to increase in Q1 2021,” the document read.
This demand was related to the increased availability of unsecured credit provided to households from lenders in the 2020 Q4, a trend that is expected to continue in 2021 Q1.
Lenders also resolved to tighten the credit scoring criterion for such loans in 2020 Q4.Â
“The proportion of approved credit card loans increased in Q4 2020, though the credit scoring criteria for granting credit card loans were tightened. However, the proportion of approved overdraft/personal loan applications increased, as lenders tightened the credit scoring criteria,” the document read in part.
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