If you are looking for the top loan apps in Nigeria with low-interest rates, this post provides you with 6 of the best options available to you.
In this article, we will take a look at some of the apps to borrow money in Nigeria that not only offer low interest rates but approve your request instantly.
What Is A Loan?
A loan is a financial transaction in which a lender provides money to a borrower in exchange for an obligation to pay back with interests.
In a simple sense, you borrow an amount of money form a lender and agree to pay back the loan alongside its interest (if any) within a stipulated time frame.
Banks and some loan companies require a lot of paper work before giving out loans, but this blog post focuses on the instant loan apps in Nigeria so you don’t have to do so much for a loan you may never receive.
Why Are Loans apps Popular in Nigeria?
People experience and struggle with different financial issues every day, and the only option is to find viable solutions.
When you are facing a bunch of financial problems, the best bet is to source for funds from family and friends, or to resort to borrowing money from instant loan apps or other lending institutions.
Basically, loans are emergency problem solvers; they could help you clear up financial issues while you wait for payday.
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What To Know Before Using Apps to Borrow Money In Nigeria
There are a few things you should keep in mind before you sign up with any app to borrow money in Nigeria;
- It is important to find a loan app that offers low interest rates so that you can afford to repay the money and stay debt-free.
- Be realistic about your income and expenses. Don’t borrow more than you can afford to repay. Most loan apps increase borrow limits as a reward for paying back on time.
- Remember that some loan apps will continue to increase the interest if you do not pay in time, so make sure you plan to repay the loan as soon as possible.
- Using an app to borrow money should be your last resort. Do not make it a habit.
- There are a lot of loan sharks out there, so becareful and use a trusted loan app.
Borrowing Money With Instant Loan Apps In Nigeria
A lot has changed with time and technological advancements. Now, you can take loans from the comfort of your home with the help of your smartphone without paperwork or collateral.
You don’t have to queue up in a bank or fill unnecessary papers anymore. Now, we have instant loan apps in Nigeria that will lend you money at any time of the day.
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There are many instant loan apps in Nigeria that offer low interest rates. Let’s take a look at some of the best.
Best Loan Apps in Nigeria To Get an Instant Loans With Low Interest
There are a lot of instant loan apps in Nigeria; and the sole aim of this post is to point the best out of the ‘many’.
This blog post focuses on how they work and what they require to offer you a loan.
At the end of this article, you will know some of the best loan apps in Nigeria that allow you get instant loans through your phone.
You will also learn the procedures to successfully apply for your first loan from these apps.
Here are the best loan apps in Nigeria we will discuss in this post;
- Carbon (formerly Paylater)
- Palmcredit
- Branch
- Quickcheck
- Aella credit
- Kuda Bank
Carbon instant loan app (formerly Paylater)
Carbon is one of the top loan apps in Nigeria. This platform has been in existing for over 5 years, providing easy instant loans to Nigerians. Loan decisions are quite easy and usually take 15-20 seconds to evaluate.
Carbon allows its users to apply for instant loans using their android or IOS mobile app.
While you can access the platform via their website, you need the carbon app to apply for a loan. You can do only little with the website. Carbon is fully approved by CBN and 100% safe to use.
New members get varying offers according to their credit history, mostly calculated by how often you use the phone number linked to your BVN for transactions. You can get between #2,500 to #20,000 as a new applicant on the Carbon app.
If you pay back your loans early carbon will offer you higher loan amounts. Salary earners and business owners can borrow as high as #500,000 on the Carbon app.
Why Carbon loan?
They make borrowing easy as their loan application process does not require paperwork or collateral.
All you need is a smartphone, access to the internet and your BVN details. The interest rate for Carbon ranges from 28-31%.
Unlike the loan sharks, Carbon respect their customers and do not harass them when they are unable to pay back on the due date. They are considerate and have an amazing customer support.
Carbon is sitting pretty as my first recommendation on my best loan apps in Nigeria.
You’ll need the following to apply for a loan from Carbon;
- Valid bank details,
- Bank Verification Number (BVN)
- Phone Number linked to your BVN
- Personal details associated with your BVN (Name, address, et al.)
- Bank account number
- Debit card for repayment
- Android or IOS phone
- Carbon App
Is carbon approved by CBN?
The answer to this question is a resounding yes!
The Central Bank of Nigeria (CBN) has approved carbon loan as a financial institution.
Branch instant loan app
Branch is yet another app sitting pretty on my my on list of top loan apps in Nigeria, Kenya and India. This instant loan app is an amazing platform for borrwing money without collateral.
Their loan offer starts at N1000 to a few thousand and more as you make timely repayments.
Branch offers weekly and monthly repayment options which you can fulfil in bits before the deadline. This platform is best suited for people looking for short-term loans.
To apply for a loan from this company; you’ll need to;
- Download the app on google play store.
- Create an account.
- Submit your account t for review.
- Apply for a loan.
- You will receive your loan if the brance team approves your loan.
If you apply for a loan and they do not approve it, you will need to wait for 15 days before re-applying.
Branch interest rate ranges from 14-28%. Like Carbon, you need to register with the phone number linked to your BVN.
They are approved by CBN and safe to use.
You’ll need the following to apply for a loan from Branch;
- Valid bank details,
- Bank Verification Number (BVN)
- Phone Number linked to your BVN
- Personal details associated with your BVN (Name, address, et al.)
- Bank account number
- Debit card for repayment
- Android phone
- Branch App
Aella Credit loan app
Aella Credit Loans are personal loans created to help people achieve their financial independence.
The app is available on Android and IOS phones. So, you can visit your respective marketplace to get the app.
The loan application process on Aella credit is quick and simple.
It is possible to borrow from #1,500,000 to #90,000,000. However, this loan has to be repaid between 30 and 60 days.
From the above, Aella credit offers large loans but they restrict their services to employees.
To borrow money from this company, they’ll need your work details to tell if you can repay your loans.
The interest rate for Aella Credit Loans ranges from 4% to 29%.
You need the following to apply for a loan from Sells Credit;
- Valid bank details,
- Bank Verification Number (BVN)
- Phone Number linked to your BVN
- Personal details associated with your BVN (Name, address, et al.)
- Bank account number
- Debit card for repayment
- Job details
- Android or IOS phone
- Aella Credit App for Android or iOS
Quick Check Instant loan app
Quickcheck loan app is a fast, secure, reliable, and easy to use platform that serves loans for personal or business purposes.
This app requires no collateral and offers up to #200,000 instant loan. Interest rates start at 2% to 30%.
Quickcheck claims to offer a 5% interest rate to first-time customers. Loan duration runs between 91 days to 100 days depending on the amount borrowed.
This platform uses a credit scoring system to determine if applicants deserve loans at the time of application.
If you are not eligible for a loan after the credit check, you’ll have to wait for 14 days before applying again.
You need the following to apply for a loan from QuickCheck;
- Valid bank details,
- Bank Verification Number (BVN)
- Phone Number linked to your BVN
- Personal details associated with your BVN (Name, address, et al.)
- Bank account number
- Debit card for repayment
- Android phone
- QuickCheck App.
Palmcredit Instant loan app
Palmcredit, is an android app that makes it easy to get instant loans in Nigeria. It facilitates credit for anyone with a smartphone app to help them access short-term loans.
However, to acquire a loan from palmcredit, the following procedure must be undertaken;
- Download the app on google playstore
- Register on the app and verify
- Apply for a loan, get approval, and receive your loan.
You can get up to #100,000 from palmcredit with interest rates ranging from 14%-24%. They need access to your BVN to offer you a loan.
Palmcredit is also approved by CBN and safe
Note; palmcredit charges late payment fees. If you’re unable to repay your loan on the due date, your repayment will increase by a small amount every day until you pay up your debt.
Before you take a loan from palmcredit, ensure you’re willing to pay back before or on the due date. You don’t want to pay over #40k for a #20k loan. Be smart, don’t get into bad debts.
You need the following to apply for a loan from Palmcredit;
- Valid bank details,
- Bank Verification Number (BVN)
- Phone Number linked to your BVN
- Personal details associated with your BVN (Name, address, et al.)
- Bank account number
- Debit card for repayment
- Android or IOS phone
- Palmcredit App.
Kuda bank overdraft
While Kuda Bank is not an outright loan app, you can gain access to a short instant loan for banking with the digital bank.
Kuda offers overdraft to users who use their account regularly to buy airtime, pay bills, make transfers and more. An overdraft enables you to spend more than your total balance.
How Kuda Overdraft Works
Carry out transactions with your account regularly, get rewarded with a fixed overdraft you can use at anytime.
You are only charged when you spend from your overdraft.The amount you can borrow depends on how much transaction you do on your account.
The Kuda overdraft interest rate is 0.3% daily. If you pay back your loan within 24 hours after borrowing, you do not pay the interest.
Choosing from the best loan app in Nigeria
Having listed my personal top loan apps in Nigeria, it is important to understand the detailed procedures, interest rates, terms and conditions (ensure you read this!), and risks involved in taking any loan.
Since most of these apps deal with ‘personal’ loans; it makes it easy for people to get involved.
Also, there is no need for physical meetings with banking institutions or providing guarantors and collateral.
Availability is another factor that makes these loan apps user-friendly; there is unlimited access to their services and a 24/7 support system.
It also has the “convenience” factor, which makes it possible to apply for a loan anytime. Also, only minimal documentation is required for these loan apps, unlike bank apps.
Put these into consideration and pick any of these apps for your loan requests.
Should You Trust Loan Apps With Your BVN?
I know how much we are being encouraged to protect our BVN and you’ll probably smell a rat whenever it’s requested.
There are scam platforms and loan sharks you have to be wary of, but the apps I listed here will have absolutely no access to your bank accounts via your BVN.
They only require the number to verify that you the genuine owner of the bank details you provide.
Your BVN only assures that they are dealing with a real human who will be willing to pay up for any loan they collect.
How Do You Pay back loans?
Whenever it’s time to pay back a loan, you don’t have to do anything but ensure you have funded your bank account whose debit card you connected to any of the loan apps you choose to use.
The loan app you use will automatically debit your account by the amount you owe once the day for repayment is due.
You can also pay up your loan manually, on or before the due date. Carbon offers grace period for late repayments.
Conclusion
At some point in life, you may need to take a loan. So, these recommendations will come in handy when you need financial help urgently.
People take loans for different purposes and not for fun, so ensure you truly need a loan and can pay back before taking one.
Whatever it is you are taking a loan for, only borrow money within your capacity and don’t make it a habit.
Do you use other instant loan apps in Nigeria that you want to share?
