Looking for the legitimate Loan Apps in Nigeria that offer instant loans? We have compiled list of the best Loan Apps in Nigeria, you should try when seeking for a loan.
With the advent of loan apps in Nigeria that provide quick and convenient loans to individuals and small businesses, obtaining loans has recently been easier. You can get a loan with just a few clicks on your mobile device without providing any collateral or filling out a ton of paperwork.
These loan apps have changed the Nigerian lending market and are now a well-liked substitute for conventional bank loans. Choosing the right loan app for your needs can be overwhelming, with so many options on the financial market. In other to make things easy for you, we have careful review some of the legitimate loan Apps in Nigeria you should try. If you like, you can also see the list of fake loan apps in Nigeria you should avoid.
With a focus on their features, benefits, and payback conditions, below are the top 10 best loan apps in Nigeria you can opt in for. But first, let’s quickly see how loan apps works.
DISCLAIMER: We are neither partners nor associates of any of the below loan apps. This article is strictly for informational purposes. We’re NOT financial service advisers. Carefully review any loan app you intend borrowing money from, their interest rate and other terms and conditions. Seek the advice from expert financial service advisers.
Read now: Ways to raise Funds to start Business in Nigeria apart from getting a loan
How do Loan Apps Works?
Loan apps give borrowers a quick and easy way to access loans online. Once you’re eligible, you’re good to go!
Here is how it works:
- First, download and Install the loan app – A borrower downloads the loan app on their mobile device from the Google store and installs it .
- Create an account – after downloading and installation of the loan app, the borrower creates account on their loan app.
- Apply for a Loan on the app – next, the borrower completes the loan application form, providing details such as the amount of the loan require, purpose of loan, income limit, employment status, and credit rating. This data is used by the loan app to decide whether to authorize the loan and how much interest to charge.
- Loan application gets approval – the lending app assesses the borrower’s creditworthiness and decides whether to approve the loan. If the loan is authorized, the borrower gets a message on the app, and minutes or hours later, the loan amount is transferred to their bank account or mobile wallet.
- Finally, repay back the Loan – the borrower must pay back the loan within the predetermined time frame, usually within 7 to 30 days. The borrower’s bank account or mobile wallet will be debited by the loan app on the due date for the whole loan repayment amount, including interest and fees.
10 Legitimate Loan Apps in Nigeria
The following are the 10 legitimate loan apps in Nigeria:
Carbon (Formerly Paylater)
Carbon is one of the most popular and ligitmate loan apps in Nigeria. It offers loans of up to ₦1 million, and you can get approved for a loan in minutes. The app also has a feature that allows you to pay bills, buy airtime, and transfer money to other bank accounts. If you need loan from carbon, you can download Carbon paylater from here. One drawback of Carbon is that its interest rates can be relatively high compared to other loan apps.
Features and Benefits:
- Instant Loans: Carbon offers instant loans to individuals without collateral or paperwork. Users can apply for loans through the Carbon mobile app and receive funds in their bank accounts within minutes.
- Bill Payments: Carbon allows users to pay their bills, including electricity bills, cable TV subscriptions, and airtime purchases, directly from the mobile app.
- Virtual Card: Carbon offers a virtual debit card that users can use to make online payments and transactions. The virtual card can be funded using a bank account or a Carbon wallet.
- Investment: Carbon offers investment opportunities through its Carbon Investment platform, where users can invest in fixed-income securities and earn attractive returns.
- Credit Score: Carbon provides users with a credit score based on their financial activities, which helps users to access more credit facilities and financial services.
Benefits
- Quick and easy access to loans: Carbon offers loans to individuals and businesses with a fast and simple application process. Customers can apply for loans and receive funding within minutes.
- Low interest rates: Carbon offers competitive interest rates on its loans, which are lower than those offered by many traditional financial institutions.
Drawbacks of Carbon (Formally Paylater)
- High interest rates: Carbon frequently charges high interest rates on its loans, which might make it challenging for consumers to pay off their debt. Even if the company’s rates are competitive when compared to those of traditional lenders, some clients may still find them to be pricey.
- Limited credit history: Compared to traditional lenders, Carbon is a relatively new financial platform, therefore it does not have as much knowledge of its clients’ credit histories. Some consumers may find it challenging to obtain loans or the best interest rates as a result.
- Limited accessibility: Although Carbon is accessible in a number of African nations, it is not yet available everywhere. For those who require access to financial services in regions where Carbon does not operate, this may be a disadvantage.
FairMoney
Another top loan app in Nigeria is FairMoney. You can apply for a loan through FairMoney and get authorized in just a few minutes for amounts up to N500,000. You can purchase airtime and make payments through the app as well. The fact that FairMoney offers cheap interest rates in comparison to other lending applications is one of its advantages.
Features
- Quick loan application process: The loan application process on the FairMoney app is very fast and can be completed within a few minutes.
- Instant disbursement of funds: Once your loan application is approved, the funds are disbursed immediately to your bank account.
- No collateral required: FairMoney loans are unsecured, which means you do not need to provide any collateral to access them.
- Flexible loan amounts: You can borrow any amount between ₦1,500 to ₦500,000, depending on your creditworthiness.
- Competitive interest rates: The interest rates on FairMoney loans are very competitive, starting from as low as 10%
Benefits
- Quick and Simple Loan Access: With FairMoney, you can apply for a loan and have it accepted in a matter of minutes without providing any collateral or filling out a ton of paperwork.
- Flexible payback Terms: With FairMoney, you may select a payback schedule that works with your budget and financial position.
- Competitive Interest Rates: FairMoney provides some of the market’s most affordable interest rates, making it a viable choice for borrowers.
- High Loan Limits: With loan limits of up to N500,000, FairMoney is an excellent choice for people and small enterprises who require more financing.
Drawbacks:
- Limited eligibility: Not everyone may be eligible for a loan from FairMoney. The app may require you to have a certain credit score, income level, or employment status to qualify for a loan.
- High-interest rates for some borrowers: While the interest rates on FairMoney loans can be competitive, they may be higher for borrowers who have lower credit scores or who are seen as higher risk by the app.
- Short repayment periods: While the flexibility in repayment terms is a benefit, the shortest repayment period of 61 days may be challenging for some borrowers who may have difficulty repaying the loan in such a short period.
- No physical branch: The app is entirely digital, which means that borrowers may not be able to access physical branches to discuss any issues or concerns they have with a loan officer.
Branch
A financial app called Branch provides loans up to $200,000 in amount. You can use a function on it to send money to other bank accounts and make payments. The fact that Branch offers adaptable repayment schedules is one of its advantages. The interest rates on the app, however, might be quite expensive.
Features
- Simple application process: Branch has a straightforward loan application process that can be completed in a few minutes.
- No collateral required: Unlike traditional banks, Branch doesn’t require any collateral or guarantor to approve a loan.
- Instant loan disbursement: Once a loan is approved, the funds are instantly disbursed to the borrower’s mobile money account or bank account.
- Flexible loan repayment: Branch allows borrowers to repay their loans in small amounts over a period of time, making it easy for them to manage their finances.
- Credit score improvement: Consistently borrowing and repaying loans on time through Branch can improve a borrower’s credit score over time.
Benefits:
- Access to quick loans: Branch offers instant loans ranging from Ksh 250 to Ksh 70,000, depending on the borrower’s creditworthiness.
- No hidden fees: Branch doesn’t charge any hidden fees or transaction charges, making it transparent and affordable for borrowers.
- Convenience: The loan application process can be done entirely through the mobile app, eliminating the need for physical visits to a bank or lender.
- Customer support: Branch provides customer support through the app, email, and social media, making it easy for borrowers to reach out for assistance if needed.
Drawbacks of Branch Loan
- High interest rates: Branch loans may have higher interest rates than conventional loans from banks or credit unions. As a result, borrowers can end up paying more for their loans over time.
Limited loan amounts: Although Branch provides instant access to loans, the most that can be obtained is frequently less than what conventional lenders might provide. Therefore, if borrowers need larger loans, they might also need to look for other funding sources.
Late payment costs: If a borrower is unable to make a loan payment on time, Branch may assess a late payment fee. These penalties can accumulate over time and raise the cost of the loan.
RenMoney
A loan app called RenMoney provides loans up to $6 million. You may purchase airtime and pay bills using a function on it. RenMoney offers low interest rates compared to other loan applications, which is one of its advantages. The app’s loan approval procedure, meanwhile, can occasionally be cumbersome.
Features:
- Online application process: RenMoney offers a fully online loan application process that can be completed in a few minutes.
- No collateral required: RenMoney does not require any collateral or guarantor to approve a loan.
- Flexible loan terms: RenMoney offers loans with flexible repayment terms, ranging from three to twelve months.
- Competitive interest rates: RenMoney offers competitive interest rates on its loans, making them affordable for borrowers.
- Quick loan disbursement: Once a loan is approved, RenMoney disburses the funds to the borrower’s bank account within 24 hours.
Benefits:
- Access to quick loans: RenMoney offers loans ranging from NGN 50,000 to NGN 6,000,000, making it possible for borrowers to access the funds they need quickly and easily.
- Transparent fees: RenMoney is transparent about its fees and charges, making it easy for borrowers to understand the total cost of the loan upfront.
- Convenient repayment options: RenMoney offers several repayment options, including direct debit, online transfers, and post-dated cheques, making it easy for borrowers to manage their repayments.
- Excellent customer service: RenMoney provides excellent customer service, with a dedicated customer support team available to answer any questions or concerns.
Drawbacks:
- Expensive interest rates: RenMoney offers competitive interest rates, however these rates may still be expensive when compared to loans from banks or credit unions that are more commonly obtained.
- Late payment penalties: If a borrower is unable to make a timely repayment, RenMoney may impose a late payment penalty. These penalties can accumulate over time and raise the cost of the loan.
- Loan quantities are limited Although RenMoney offers loans up to NGN 6,000,000, certain borrowers may need greater loans.
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PalmCredit
PalmCredit is a loan app that offers loans of up to ₦100,000. It has a feature that allows you to pay bills and buy airtime. One of the benefits of PalmCredit is that it offers fast loan approvals. However, the app’s interest rates can be relatively high.
Features:
- Fast and easy application process: PalmCredit offers a quick and simple application process through its mobile app.
- Instant loan disbursement: Once approved, the loan amount is disbursed instantly to the borrower’s bank account.
- Flexible loan amounts: PalmCredit offers loans ranging from ₦2,000 to ₦100,000 to borrowers.
- Competitive interest rates: PalmCredit offers competitive interest rates on its loans.
- No collateral required: Borrowers do not need to provide collateral to access PalmCredit loans.
Benefits:
- Easy access to credit: PalmCredit offers borrowers easy access to credit, which can be particularly helpful in emergencies or when unexpected expenses arise.
- No need for physical visits: With its mobile app, borrowers can apply for and receive loans from PalmCredit without the need for physical visits to a branch.
- Repayment flexibility: Borrowers can choose to repay their loans in multiple installments over a period of up to 6 months.
- Rewards for good borrowing behavior: PalmCredit offers rewards to borrowers who repay their loans on time and maintain good borrowing behavior.
- Build credit history: Consistent and timely repayment of PalmCredit loans can help borrowers build their credit history, which can be useful in accessing credit from other sources in the future.
Drawbacks:
- Limited loan amounts: PalmCredit offers loans only up to a maximum of ₦100,000, which may not be enough for borrowers with higher financial needs.
- High-interest rates for longer tenures: While PalmCredit’s interest rates are competitive for short-term loans, they can be relatively high for longer tenures.
- Late payment penalties: PalmCredit charges a penalty fee of 1% per day on the outstanding loan amount for late payments.
- Mobile app limitations: Borrowers who do not have a smartphone or internet connection may not be able to access PalmCredit loans.
- Availability limited to Nigeria: PalmCredit is currently only available in Nigeria, so borrowers in other countries cannot access its services.
Kiakia
KiaKia loan app is a quick loan app. No stress, less documentation, and no collateral. The app provides loans up to 200,000. You may purchase airtime and pay bills using a function on it. The fact that Kiakia offers cheap interest rates in comparison to other lending applications is one of its advantages. The app’s loan approval procedure, meanwhile, can occasionally be cumbersome.
Features:
- Fast and easy application process: Kiakia loan app offers a quick and simple application process through its mobile app.
- Instant loan disbursement: Once approved, the loan amount is disbursed instantly to the borrower’s bank account.
- Flexible loan amounts: Kiakia loan app offers loans ranging from ₦10,000 to ₦200,000 to borrowers.
- Competitive interest rates: Kiakia loan app offers competitive interest rates on its loans.
- No collateral required: Borrowers do not need to provide collateral to access Kiakia loans.
Benefits:
- Easy access to credit: Kiakia loan app offers borrowers easy access to credit, which can be particularly helpful in emergencies or when unexpected expenses arise.
- No need for physical visits: With its mobile app, borrowers can apply for and receive loans from Kiakia loan app without the need for physical visits to a branch.
- Repayment flexibility: Borrowers can choose to repay their loans in multiple installments over a period of up to 3 months.
- Rewards for good borrowing behavior: Kiakia loan app offers rewards to borrowers who repay their loans on time and maintain good borrowing behavior.
- Build credit history: Consistent and timely repayment of Kiakia loans can help borrowers build their credit history, which can be useful in accessing credit from other sources in the future.
Drawbacks:
- Limited loan amounts: Kiakia loan app offers loans only up to a maximum of ₦200,000, which may not be enough for borrowers with higher financial needs.
- High-interest rates for longer tenures: While Kiakia loan app’s interest rates are competitive for short-term loans, they can be relatively high for longer tenures.
- Late payment penalties: Kiakia loan app charges a penalty fee of 10% on the outstanding loan amount for late payments.
- Mobile app limitations: Borrowers who do not have a smartphone or internet connection may not be able to access Kiakia loan app loans
- Availability limited to Nigeria: Kiakia loan app is currently only available in Nigeria, so borrowers in other countries cannot access its services.
Kuda
Kuda is a banking app that offers loans of up to ₦200,000. It has a feature that allows you to pay bills, buy airtime, and transfer money to other bank accounts. One of the benefits of Kuda is that it offers low-interest rates compared to other loan apps. kuda loan is called Kuda Overdraft.
Features:
- Kuda bank loan is a short-term loan offered to people to meet emergencies and needs.
- No collateral, paperwork, or property documents are needed to secure a Kuda loan. But, you will be charged 0.3% interest daily until the loan is repaid.
- You have to upgrade your account by linking it with your Bank BVN and NIN.
- Use the Kuda bank app regularly, as it increases your chances of being granted your desired loan.
- The platform offers you the overdraft service automatically based on your use kuda app.
QuickCheck
A loan app called QuickCheck provides loans up to $200,000 in amount. You may purchase airtime and pay bills using a function on it. QuickCheck has the advantage of providing quick loan approvals. However, the interest rates on the app might be quite expensive.
Features:
- Fast and easy application process: QuickCheck offers a quick and simple application process through its mobile app.
- Instant loan disbursement: Once approved, the loan amount is disbursed instantly to the borrower’s bank account.
- Flexible loan amounts: QuickCheck offers loans ranging from ₦1,500 to ₦500,000 to borrowers.
- Competitive interest rates: QuickCheck offers competitive interest rates on its loans, starting from 1% per day.
- No collateral required: Borrowers do not need to provide collateral to access QuickCheck loans.
Benefits:
- Easy access to credit: QuickCheck offers borrowers easy access to credit, which can be particularly helpful in emergencies or when unexpected expenses arise.
- No need for physical visits: With its mobile app, borrowers can apply for and receive loans from QuickCheck without the need for physical visits to a branch.
- Repayment flexibility: Borrowers can choose to repay their loans in multiple installments over a period of up to 12 months.
- Rewards for good borrowing behavior: QuickCheck offers rewards to borrowers who repay their loans on time and maintain good borrowing behavior.
- Build credit history: Consistent and timely repayment of QuickCheck loans can help borrowers build their credit history, which can be useful in accessing credit from other sources in the future.
Drawbacks:
- High-interest rates for longer tenures: While QuickCheck’s interest rates are competitive for short-term loans, they can be relatively high for longer tenures.
- Late payment penalties: QuickCheck charges a penalty fee of 1% per day on the outstanding loan amount for late payments.
- Mobile app limitations: Borrowers who do not have a smartphone or internet connection may not be able to access QuickCheck loans.
- Availability limited to Nigeria: QuickCheck is currently only available in Nigeria, so borrowers in other countries cannot access its services.
- Limited loan amounts for first-time borrowers: QuickCheck may offer lower loan amounts to first-time borrowers until they build up a track record of timely repayments.
If you want further information on how to get loan from Quickcheck, go to quickcheck website or download their mobile loan app.
Aella Credit
Aella Credit is a loan app that offers loans of up to ₦1 million. It has a feature that allows you to pay bills and buy airtime. One of the benefits of Aella Credit is that it offers low-interest rates compared to other loan apps. However, the app’s loan approval process can be relatively slow.
Features:
- Fast and easy application process: Aella Credit offers a quick and simple application process through its mobile app or website.
- Instant loan disbursement: Once approved, the loan amount is disbursed instantly to the borrower’s bank account.
- Flexible loan amounts: Aella Credit offers loans ranging from ₦1,500 to ₦1,000,000 to borrowers in Nigeria.
- Competitive interest rates: Aella Credit offers competitive interest rates on its loans, starting from 4% per month.
- No collateral required: Borrowers do not need to provide collateral to access Aella Credit loans.
Benefits:
- Easy access to credit: Aella Credit offers borrowers easy access to credit, which can be particularly helpful in emergencies or when unexpected expenses arise.
- No need for physical visits: With its mobile app or website, borrowers can apply for and receive loans from Aella Credit without the need for physical visits to a branch.
- Repayment flexibility: Borrowers can choose to repay their loans in multiple installments over a period of up to 4 months.
- Rewards for good borrowing behavior: Aella Credit offers rewards to borrowers who repay their loans on time and maintain good borrowing behavior.
- Build credit history: Consistent and timely repayment of Aella Credit loans can help borrowers build their credit history, which can be useful in accessing credit from other sources in the future.
Drawbacks:
- Limited loan amounts: Aella Credit’s maximum loan amount may not be enough for borrowers with higher financial needs.
- Limited availability: Aella Credit is only available in Nigeria, Ghana, and the Philippines, so borrowers in other countries cannot access its services.
- Late payment penalties: Aella Credit charges a penalty fee of 1% per day on the outstanding loan amount for late payments.
- Mobile app limitations: Borrowers who do not have a smartphone or internet connection may not be able to access Aella Credit loans.
- Limited loan tenure: Aella Credit offers loans for a maximum tenure of only 4 months, which may not be sufficient for borrowers who need longer-term loans.
Specta
Specta is a loan app that offers loans of up to ₦5 million. It has a feature that allows you to pay bills and buy airtime. One of the benefits of Specta is that it offers flexible repayment plans. However, the app’s interest rates can be relatively high.
Features:
- Fast and easy application process: Specta offers a quick and simple application process through its mobile app or website.
- Instant loan disbursement: Once approved, the loan amount is disbursed instantly to the borrower’s bank account.
- Flexible loan amounts: Specta offers loans ranging from ₦10,000 to ₦5,000,000 to borrowers.
- Competitive interest rates: Specta offers competitive interest rates on its loans, starting from 1.5% per month.
- No collateral required: Borrowers do not need to provide collateral to access Specta loans.
Benefits:
- Easy access to credit: Specta offers borrowers easy access to credit, which can be particulaly helpful in emergencies or when unexpected expenses arise.
- No need for physical visits: With its mobile app or website, borrowers can apply for and receive loans from Specta without the need for physical visits to a branch.
- Repayment flexibility: Borrowers can choose to repay their loans in multiple installments over a period of up to 12 months.
- Rewards for good borrowing behavior: Specta offers rewards to borrowers who repay their loans on time and maintain good borrowing behavior.
- Build credit history: Consistent and timely repayment of Specta loans can help borrowers build their credit history, which can be useful in accessing credit from other sources in the future.
Drawbacks:
- Limited availability: Specta is currently only available in Nigeria, so borrowers in other countries cannot access its services.
- Late payment penalties: Specta charges a penalty fee of 1% per day on the outstanding loan amount for late payments.
- High processing fee: Specta charges a processing fee that can be as high as 1% of the loan amount.
- Limited loan tenure: Specta offers loans for a maximum tenure of only 12 months, which may not be sufficient for borrowers who need longer-term loans.
- Credit check requirements: Specta may require a credit check as part of the loan application process, which can be a drawback for borrowers with poor credit histories.
Conclusion
In conclusion, there are many loan apps available in Nigeria, each with its own features, benefits, and drawbacks. It’s important to do your research and choose the loan app that best suits your needs and financial situation. Remember to read the terms and conditions carefully before applying for any loan and ensure that you can afford the repayment terms. With the right loan app, you can access quick loans and meet your financial needs without going through the tedious process of traditional banks.