Introduction

Due to the high interest rates charged by banks and the onerous requirements to get loans, it has always been extremely difficult for people and small enterprises in Nigeria to obtain loans. However, the process of obtaining loans has become simpler and more practical for people and small enterprises with the introduction of lending apps.

In this article, we’ll talk about the several lending applications that are accessible in Nigeria, how they operate, and their benefits and drawbacks.

Loan Apps In Nigeria

Carbon

Carbon, formerly known as Paylater, is one of the most popular loan apps in Nigeria. It was founded in 2016 and has since disbursed over $50 million in loans to individuals and small businesses. Carbon offers loans up to N1 million with interest rates ranging from 5% to 15%. The loan tenure is usually between 1 to 12 months.

To access a loan on Carbon, you need to download the app from the Google Play Store, create an account, and provide some personal information such as your name, BVN, and bank account details. After that, you can apply for a loan, and if you meet their requirements, the loan will be disbursed to your bank account within a few hours.

Pros:

• Carbon offers fast and convenient loan disbursement
• They have a user-friendly app that is easy to navigate
• The interest rates are relatively low compared to other loan apps in Nigeria
• They have a flexible repayment period

Cons:

• Carbon has a strict loan repayment policy, and defaulters may face legal actions
• The loan amount is limited to N1 million

Renmoney

Renmoney is a leading fintech company in Nigeria that provides loans to individuals and small businesses. The company was founded in 2012 and has since disbursed over N25 billion in loans. Renmoney offers loans up to N4 million with interest rates ranging from 4.5% to 4.75%. The loan tenure is usually between 3 to 24 months.

To access a loan on Renmoney, you need to visit their website, create an account, and provide some personal information such as your name, BVN, and bank account details. After that, you can apply for a loan, and if you meet their requirements, the loan will be disbursed to your bank account within 24 hours.

Pros:

• Renmoney offers a higher loan amount compared to other loan apps in Nigeria
• They have a flexible repayment period
• The loan application process is easy and straightforward
• They have a good customer support team

Cons:

• The interest rates are relatively high compared to other loan apps in Nigeria
• Renmoney requires collateral for some of their loans

Branch

Branch is a popular loan app in Nigeria that provides loans to individuals and small businesses. The company was founded in 2015 and has since disbursed over $350 million in loans. Branch offers loans up to N200,000 with interest rates ranging from 15% to 34%. The loan tenure is usually between 4 to 40 weeks.

To access a loan on Branch, you need to download the app from the Google Play Store, create an account, and provide some personal information such as your name, BVN, and bank account details. After that, you can apply for a loan, and if you meet their requirements, the loan will be disbursed to your bank account within a few hours.

Pros:

Branch offers fast and convenient loan disbursement

They have a user-friendly app that is easy to navigate

They offer loans to individuals without collateral

They have a flexible repayment period

Cons:

The interest rates are relatively high compared to other loan apps in Nigeria

The loan amount is limited to N200,000

FairMoney

FairMoney is another popular loan app in Nigeria that provides loans to individuals and small businesses. The company was founded in 2017 and has since disbursed over N15 billion in loans. FairMoney offers loans up to N500,000 with interest rates ranging from 10% to 30%. The loan tenure is usually between 1 to 3 months.

To access a loan on FairMoney, you need to download the app from the Google Play Store, create an account, and provide some personal information such as your name, BVN, and bank account details. After that, you can apply for a loan, and if you meet their requirements, the loan will be disbursed to your bank account within a few hours.

Pros:

FairMoney offers fast and convenient loan disbursement

They have a user-friendly app that is easy to navigate

They offer loans to individuals without collateral

They have a flexible repayment period

Cons:

The interest rates are relatively high compared to other loan apps in Nigeria

The loan amount is limited to N500,000

Kiakia

Kiakia is a Nigerian loan app that offers personal and business loans to individuals and small businesses. The company was founded in 2016 and has since disbursed over N3 billion in loans. Kiakia offers loans up to N200,000 with interest rates ranging from 5.6% to 24%. The loan tenure is usually between 7 to 30 days.

To access a loan on Kiakia, you need to visit their website, create an account, and provide some personal information such as your name, BVN, and bank account details. After that, you can apply for a loan, and if you meet their requirements, the loan will be disbursed to your bank account within a few hours.

Pros:

• Kiakia offers fast and convenient loan disbursement
• They have a user-friendly website that is easy to navigate
• They offer loans to individuals without collateral
• They have a flexible repayment period

Cons:

• The interest rates are relatively high compared to other loan apps in Nigeria
• The loan amount is limited to N200,000

Conclusion

Loan apps have made it easier for individuals and small businesses to access loans in Nigeria. However, it is important to note that these loan apps come with high-interest rates, and defaulters may face legal actions. Therefore, it is advisable to carefully consider the loan terms before applying for a loan and ensure that you have a clear plan for repayment.

Frequently Asked Question

Are loan apps safe to use?

Yes, loan apps in Nigeria are generally safe to use. However, you should be careful when downloading and installing loan apps, as there are many fake loan apps on the internet. To avoid being scammed, always download loan apps from reputable sources such as the Google Play Store.

How much interest do loan apps charge?

The interest rates charged by loan apps vary depending on the app and the amount borrowed. Some loan apps charge as low as 5% interest per month, while others charge as high as 30% interest per month. It is important to compare the interest rates charged by different loan apps before applying for a loan.

Can I get a loan without collateral?

Yes, most loan apps in Nigeria offer unsecured loans, which means you can get a loan without providing any collateral. However, you may be required to provide some personal information such as your name, BVN, and bank account details.

How long does it take to get a loan from a loan app?

The time it takes to get a loan from a loan app varies depending on the app and the amount borrowed. Some loan apps disburse loans within a few hours, while others may take up to 24 hours. It is important to check the loan disbursement time before applying for a loan.

Can I repay my loan before the due date?

Yes, most loan apps allow you to repay your loan before the due date without any penalty. However, some loan apps may charge a fee for early repayment. It is important to read the loan terms and conditions before applying for a loan.

What happens if I default on my loan?

If you default on your loan, the loan app may take legal action against you, which may include seizing your assets or taking you to court. It is important to ensure that you have a clear plan for repayment before applying for a loan. If you are unable to repay your loan, you should contact the loan app and discuss a repayment plan.