Most loan apps allow you to repay these loans and the interest in installments. While there are many loan apps available in your app store today, it is important to find the safest and best option for you. This is why in this article, we’ll be showing you how to identify good loan apps, the top five loan apps in Nigeria along with their interest rates.
What Makes a Good Loan Service?
Not a lot of loan apps prioritize their customers when it comes to offering reliable services or giving out approvals. So to identify a good loan service, be on the lookout for their;
Approval to payment window: After approving a loan, you should use a loan service that’ll immediately disburse the amount you requested for. A good disbursement period is anywhere between 24-48 hours. This way, during emergencies, you don’t have to wait for a very long time.Interest rates: This is perhaps the most important condition. You don’t want to receive a loan that’ll make you pay through your nose for its interest. So look out for low-interest rates. That way, you can easily repay your loan.Repayment window: Finally, you need a service that’ll give you sufficient time to repay your loan. If a service is demanding you pay back in a week or two, they are probably loan sharks you should avoid.
You can get this information by looking through the reviews on their app, the conditions on their website, or even in this post.
5 Best Personal Loan Apps in Nigeria
1. Migo
Migo is a finance app that is great for getting an instant loan. To get a Migo loan, all you need is the phone number linked to your BVN and that’s it. No collateral or documents are needed. Simply fill in your personal details and the bank account number you’d want it credited into. You can collect loans worth between N500 to N500,000 on Migo. However, this app works with a credit score. So on your first try, you’d only be eligible to receive a small amount. Over time when you repay this loan, you become eligible to borrow bigger sums. What this means is that you cannot request a fixed amount. They provide you with an amount that tallies with your eligibility. Interest rates are also not fixed. The rate could vary from anywhere between 5-25% depending on the loan conditions. Your repayment history could also affect your interest rate. So when you have a good repayment history, you’d get a lower interest rate over time. Disbursements are often immediately. So you’re sure to get your loan within 24 hours. The repayment window on Migo is also really good.
2. Branch
Branch requires your phone number, BVN, and bank account. However, you can only apply if your bank is listed amongst the supported bank apps. To get started, simply download the Branch app and sign up. You can receive loans ranging from N2000 to N500,000. However, your repayment history directly affects how much you can borrow at a given time. After your loan has been approved, processing and disbursements periods often take 24 hours. Interest rates vary and it’s particularly tied to your repayment history with Branch. This could be anywhere between 17%-40%. However, there are no late fees or any additional costs. The repayment window is from 4-52 weeks giving you sufficient time to pay back without hassle. Branch uses data from your phone to determine your eligibility criteria. So if you have concerns about your personal data, you might want to check out another option.
3. FairMoney
FairMoney is a digital bank that offers instant loans to Nigerians. You can get single payment loans, installment loans, or even payroll loans. Here, you can receive loans from N1,500 to N1 Million. All you need is an Android phone, your BVN, and the number linked to your bank account. Download the FairMoney App and sign up to get started. Interest rates range from 2.5% to 30%. Once your loan is approved, you can get it within 24 hours; even as fast as 5 minutes. FairMoney has a very great repayment period. This window can be anywhere between 61 days to 18 months. However, this is closely tied to your repayment behavior over time. The more faithful you are to it, the more loan amounts you can unlock. Also with the auto-debit feature, you can automatically pay back your loan on the repayment date. As soon as your repayment period is over, you can reapply immediately and get another loan.
4. Carbon
Carbon formerly known as Pay later is a Nigerian loan app that provides instant loans in minutes. You can get loans from anywhere between N1,500 to N 1Million depending on your credit score. To get started, simply download the Carbon app and sign up with the available registration form. You’ll also be required to enter your phone number and BVN to access your credit score. The interest rate of loans taken on this app is usually between 1.75% to 30%. There are no rollover fees, late fees, or processing fees involved. What’s unique about this app is that you get a cashback on interest paid once you repay on time. Also if you’ve repaid your previous loan, you can re-apply for another loan within 24 hours.
5. QuickCheck
QuickCheck is another app designed to disburse instant loans. Any Nigerian with a good credit score is eligible to get loans on this app. To apply, you need an android device, a Facebook email address, and a password. Simply download the QuickCheck app and signup to get started. First-time users can get loans worth up to N10,000. Over time based on your credit rating, you can receive up to N500,000 worth. After applying, loan validation takes 24 hours before disbursement. QuickCheck loan has interest rates starting from as low as 5% monthly on the first loan. The repayment period ranges from 91 days – to 1 year and typical interest ranges from 2% – 30%. You can also choose to repay your loan in weekly installments as opposed to the one-time payment other services operate on. After repayment, you have a 10 day waiting period before you can apply for another loan. This is for users with less than 5 successful loan payments. We hope you found this helpful. Ever used any of these loan apps before? Let us know about your experience with them in the comment section below.
