The Best 5 Loan Apps in Nigeria You Need to Know About

Due to the increasing number of digital financial services that offer quick loans to prospective customers, you may receive an instant online loan in less than five minutes on different loan apps in Nigeria.

Loan applications are a nightmare for many. Whether you’re looking for a mortgage, car loan, personal loan, or even just trying to get some cash from your savings account, there are so many things that have to be considered before you can be eligible for them. 

This is why we have seen the rise of online services that ease the process and make it as hassle-free as possible. These services are called FinTech apps, or financial technology applications. 

They use an individual’s personal information and browsing history in order to streamline the application process. These loan apps in Nigeria are designed with the Nigerian customer in mind, making it easy to apply and receive financing through their mobile devices. 

Because of the large number of lenders that offer loans within 24 hours, we decided to list the top 5 reliable and trusted loan apps in Nigeria where you can compare and access loans with ease. 

Digital financial services firms are experiencing disruption as a result of innovative digital services that make borrowing simpler and more convenient. As a result, traditional financial institutions are being disrupted.

Below is a list of financial loan app institutions in Nigeria. The list is based on popularity and acceptance by the general population: It is important to note that we have personally used  8 out of 10 of the companies listed below.

• FAIR MONEY
• CARBON (PAY LATER)
• BRANCH
• AELLA CREDIT
• UMBA
  
  

  FAIR MONEY

Fair Money is a licensed FinTech company that offers a variety of loan products. These include short-term consumer credit, which is often referred to as payday loans. Additionally, Fair Money offers longer-term credit also. 

To get a loan (ranging from N3000 to N150,000), you'll need your Bank Verification Number and your debit card. FairMoney's loan interest rates start at 5% and can go up to 28 percent depending on how much you borrow. It also has a loan term range of 4 to 28 weeks

No matter what your needs may be, Fair Money has the product for you. They even provide business loans for entrepreneurs who need a little extra help getting their ideas off the ground. Fair Money's quick-decision loan app allows customers to apply for a loan in just three steps. 

First, you fill out a short questionnaire regarding your employment and income sources. Second, you create a profile using your phone’s camera. Finally, you submit your application and a customer service representative will review it within 24 hours but in some cases, the review and approval are done in minutes. If approved, you will receive your money via mobile money transfer. You can be assured that your information is not shared with any third-party companies.

                           

               CARBON( PAY LATER)

Carbon is one of the pioneer mobile loan apps in Nigeria. It is a FinTech company offering short-term loans in Nigeria. You must be 18 years of age or older and have a valid Nigerian mobile phone number in order to apply for a loan. Carbon allows you to borrow up to 100,000,000 Naira in a single transaction.

The loan terms may vary, but the average repayment period is three months. Carbon makes it easy to apply for a loan. You can simply log in to their website or download the app and answer a few simple questions regarding your employment and income. You can also upload a scanned copy of your photo ID and a recent payslip if required, depending on the amount of the loan.

Once your application is approved, the funds will be deposited directly into your bank account. If you prefer to apply for a loan via the Carbon app, select “Quick Loan.” You will then be prompted to enter your mobile phone number and create a four-digit PIN code. Next, you will be asked to enter your desired loan amount and select the repayment period. 

Once you have submitted your application, you will receive an immediate response letting you know if you have been approved. Their loan interest starts from 5% to 15%.

BRANCH

Another site that provides speedy internet loans in Nigeria is Branch Loan. You can acquire loans ranging from N1,000 to N200,000 within a short period of 10 minutes to 24 hours, with repayment terms ranging from 4 to 40 weeks.

Because of its style of operation, it is widely recognized as one of Nigeria's most dependable loan apps. Its interest rate fluctuates between 15% and 34%.

You don't need any collateral or income-generating assets to receive a loan as a borrower. Interest rates are influenced by a variety of factors, including the lender's repayment history and Branch's cost of borrowing.

Branch has made it simple for Nigerians to obtain loans from anywhere in the country without having to engage in physical activity or provide collateral before approval of the loan.

AELLA

Aella offers fast credit solutions that reduce the burden of traditional loan applications and allow individuals, and employees to borrow from their companies at reasonable and fair percentage rates. Although the loan app serves the general public its service is more to the middle class. 

Employees, businesses, and investors can use the site to borrow funds ranging from N1,500 to N700,000 at a monthly interest rate of 4% to 29% In  Nigeria. Like that of other platforms, one of the platform's requirements is the Bank Verification Number. Its loan term is between one and two months.                                                    

 UMBA

 

UMBA is a relatively new addition to the Nigerian FinTech scene. This app provides short-term loans ranging from N5,000 and has a quick approval process. You must be a Nigerian resident, 18 years or older, have a valid phone number, Bank Verification Number (BVN) and either have an account with a Nigerian mobile money transfer service or an active bank account. 

If you have all four of these requirements, you can apply for up to 5,000 Naira in a single transaction and if the repayment is made on time you will be opportune to take a higher amount subsequently. 

UMBA has an easy application process. Once logged in to the app,  and filling out the questionnaire you will receive a unique code that will enable you to log in properly.  If the loan is approved, the money will be paid into your Umba wallet and you will then transfer it into your bank account. 

CONCLUSION

The rise of FinTech in Nigeria has encouraged many people to open lending firms and provide loans at affordable rates.

However, there are only a few of them in the country that are legitimately operating, meaning that you may have to look a little harder to find a lender that will not compromise your information and who also offers loans with better interest rates and terms. so you will have to make sure to check their rates before you finalize any loan.

Using Fintech apps means that you can apply for a loan online instead of in person at a bank or financial institution. This helps the process move along much faster, and most importantly, it doesn't require a lot of effort on your part.

The only thing that you need is a valid Nigerian mobile phone number, BVN (Bank Identification Number) and your valid government-issued ID card. Using this method, you can be approved for a loan in a matter of minutes.