Nigerians frequently attempt to use loan applications for a variety of reasons. The expression “I want an urgent 2k” is a common one in the area and means that you urgently need money. To learn about the best loan applications in Nigeria and their interest rates, you’ve come to the correct spot.
Nigerians have struggled over the years to figure out which route to take when applying for a loan in order to finance a business, pay expenses, or make a significant purchase. Since this instance, the majority of ignorant Nigerians have come to believe that they are stuck in the thrall of loan sharks, or unregulated loaners, and are therefore between the devil and the deep blue sea.
Nigerians can steer clear of the traps of loan sharks—who are notorious for their exorbitant interest rates and rigid deadlines—by being aware of this information. You can now choose a loaners who has been approved by the FCCPC. To help you, we’ve compiled a list of the best loaning apps along with information on their interest rates.
Top 5 Loan Apps In Nigeria And Their Interest Rates
1. Palmcredit
With more than 5 million downloads on the Google Play Store, Palmcredit is the most popular loaning app in Nigeria. Without requiring collateral, Palmcredit promises to provide a fast loan of up to N300,000 in a matter of minutes. This is consistent with the platform’s claim that you can borrow between N10,000 and N300,000, and that you can get access to the loan within a working day after submitting the necessary paperwork.
The Annual Percentage Rate (APR) that Palmcredit offers is between 24% and 56%.
For example, the site charges 8% interest monthly if you plan to borrow N200,000 with a 6-month loan plan on Palmcredit. This indicates that N48,000 will be the interest rate for the six-month period. Therefore, your total repayment will be N248,000.
2. FairMoney
FairMoney has been downloaded over 10 million times from the Google Play Store, allegedly providing quick loans (5 minutes) without requiring collateral or paperwork. This platform adjusts the loan amount based on your smartphone data and payback history.
The loan amount might range from N1,500 to N1 million, with an interest rate of 2.5% to 30% and a repayment period of 61 days to 18 months.
For example, if you take out a N100,000 loan and pay it back over three months, you will have to pay back N130,000. It is anticipated that you will pay back N43,333 each month.
3. Okash
Because it is so widely accessible to Nigerian mobile users, the Okash app has had over 5 million downloads to far. Blue Ridge Microfinance Bank Limited is in charge of overseeing this platform. Users of Okash can always get loans from the platform.
On Okash, the documentation process moves very quickly. It offers loans with terms varying from 91 to 365 days, and amounts ranging from N3,000 to N500,000.
Okash interest rates are calculated daily and range from 36.5% to 360% APR.
4. QuickCheck
One noteworthy feature of QuickCheck is the use of machine learning to anticipate borrower behavior and instantly review loan applications. Currently, over a million people have downloaded this app.
This portal offers loans with interest rates starting at 5% for the first month, and loans ranging from N1,500 to N500,000. Here, the repayment term ranges from 91 to 365 days, with interest rates ranging from 2% to 30%.
5. Branch
Branch has received 10 million downloads from the Google Play Store, making it one of Nigeria’s most popular lending apps. Your eligibility for the loan on this platform is determined by the information from your smartphone.
You can receive a personal loan between N2,000 and N500,000 in less than a day, depending on your repayment history. However, the app offers monthly interest rates ranging from 3% to 23% and 62 days to 365 days for repayment. However, your risk profile determines which amount and interest rate are available to you.
In the event that you borrow N120,000 on the app with a 62-day repayment period and an 181% annual percentage rate, for example, you will be required to pay N156,800 in total—that is, N120,000 plus the interest rate of N36,800.
Considerations For Selecting A Loan Application
1. Duration of Loan
That’s right. The primary consideration that needs to guide your selection of a preferred loan application. This emphasizes that you are aware of your capacity to return the funds when they are due (as stated on the app). Choose applications with extended payback periods—up to 365 days—instead than ones with a set 62-day repayment duration if you need to borrow money that you can’t pay back in 60 days.
2. Usability of Apps
You have to be able to respond appropriately when someone asks, “Is the app easy to use?” Loan applications need to have an intuitive user experience that is straightforward to use. But since you might not have a clear grasp of how the app functions, you might want to avoid using one that is this complicated. A typical app should be simple enough for users of all skill levels to utilize.
3. Customer Service
Here, we are discussing money. As a result, it’s critical that you get solid guidance while applying for a loan. You should be able to quickly and easily contact responsive customer care through your preferred lender app in order to escalate any questions and get them fixed in the shortest time.
Frequently Asked Questions (FAQs)
Do I Need To Give Anything As Collateral To Receive Money From Loan Apps?
To borrow money from these lenders, you don’t have to give them any collateral. Your BVN or NIN information may be required in order for these online lenders to track the money they send you.
Are These Loan Applications’ Interest Rates Cheaper Than Loan Sharks?
These previously stated internet lenders are governed by FCCPC. As a result, they are required to function inside the established interest rate framework. Loan sharks, on the other hand, are unlicensed and unregulated. As a result, their interest rates are frequently significantly higher than those of these loan apps.
How is my data used by online lenders to process my loan?
Loan apps access your creditworthiness and facilitate quick loan processing by using the information gathered from your phone. Additionally, they gather KYC (know your customer) information under federal government directives.
Conclusion
Given that each of the aforementioned lending apps has unique features, functionalities, and interest rates, you can now obtain loans from any of them. You can carefully read through them to choose which is ideal for you.
It should be highlighted, nevertheless, that neither financial advice nor app recommendations are made in this post. This article solely draws upon our own research; nonetheless, before taking out a loan, you might want to look into your preferred lending app further.