Taking out a loan for personal or business purposes has become a seamless process. With a smartphone and an Internet connection, anyone with a bank account can apply for a loan at any time and, in most cases, receive it immediately. Some lending institutions even allow the use of a cell phone by dialling a specific USSD code.
As in any other emerging market, there are plenty of money lenders in Nigeria. But not all of these companies offer reliable and secure services. The best loan providers should offer instant disbursement, a low-interest rate, sufficient repayment period and options, and good customer relations.
Here are – in no particular order – The top 5 Best Loan App In Nigeria that democratizes access to credit and promote financial inclusion.
Originally launched under the name PayLater, Carbon offers anyone in need of urgent credit access to an instant loan within minutes.
Carbon requires its users to enter their bank verification number (BVN) for verification, and once that’s done, they can apply for a loan.
Carbon loans range from ₦1,500 ($3.6) to ₦1 million ($2430.13) in Nigeria and Ksh 500 ($4.55) to Ksh 30,000 ($273.10) in Kenya; it allows repayments over a maximum of 64 weeks with interest ranging from 1.75% to 30%, with a corresponding monthly interest rate of 1% – 21%. Click the link below to download the carbon app. when signing up using this Referal code: HOPEBJ68 you will get a higher amount.
Launched in 2017, Branch makes it easy to take out a personal loan through an app with a seamless onboarding process. Branch uses the user’s phone data, including SMS history, to verify identity and create a credit score.
Branch operates in four countries – Nigeria, Kenya, Tanzania, and India – and the loan amount and interest rate are different in each country.
In Nigeria, for example, loan amounts range from ₦1,000 ($2.43) to ₦200,000 ($486.03) with monthly interest rates ranging from 1.6% to 23%, depending on the loan amount and repayment history. In Tanzania, loan amounts range from Tsh 5,000 ($2.16) to Tsh 700,000 ($301.87) with monthly interest ranging from 4% to 27%, also depending on the same conditions.
In all countries, Branch users have the option to choose repayment terms of up to 336 days, but each loan amount comes with the option of repayment within at least 60 days. Click the link below to download the Branch app.
FairMoney is another fast, reliable and free Android loan app available in Nigeria and India.
Loan amounts on this app range from ₦1,500 ($3.6) to ₦500,000 ($1215.07) with repayment terms ranging from 61 days to one year with monthly interest rates ranging from 2.5% to 30%.
This app is available on Google Playstore and claims that 3 million customers apply for loans with it. Click the link below to download the FairMoney app.
The Palmcredit loan app allows users to take out an instant loan online with a “flexible repayment plan and affordable interest rate.” The loan amount ranges from ₦5,000 ($12.15) to ₦300,000 ($729.04).
Palmcredit’s interest rate ranges from 4% to 24%. The app offers two flexible repayment options of 91 days and 365 days, so users can decide which one is more convenient for them.
Palmcredit does not charge rollover or transaction fees. Palmcredit also rewards customers who repay their loans on time with a high credit score and a reduced interest rate. Click the link below to download the Palmcredit app.
Lcredit offers loan interest rates from a minimum of 0.1% up to 1% for terms from 91 to 180 days.
Annual interest rates from 36.5% to 300%, interest rate is calculated daily. If you choose a 91-day loan, you will incur a 39% processing fee and 2.7% interest.
For example, for a loan with a principal amount of 3,000 Naira, the processing fee would be 1,174 Naira, the interest would be 81 Naira, and the total amount would be 4,255 Naira. Click the link below to download the Lcredit app.
These are the Top 5 Best Loan App In Nigeria, even though most of these platforms claim to offer quick loans without collateral, it is advisable to study the terms and conditions (T&C) carefully before submitting an application.
Another factor to consider is the interest rate and the repayment period. As a business, you should not take out loans with a very short repayment period unless you are sure that you will get the money back in the shortest possible time.