Loan Apps in Nigeria: Compare, Choose, and Apply

The development of loan apps in Nigeria has undoubtedly helped many people settle their financial challenges and even establish businesses.

In a country like Nigeria where many people struggle with financial issues, borrowing money has become a powerful option for survival, and behold, the technology of digital lending apps is here to improve and simplify the lending system.

If you are on this page, I believe you either want to learn more about loan apps in Nigeria or want to borrow from these apps. In whichever case, I am confident that you will get a solution right here, as this article covers everything you need to know about loan apps in Nigeria!

Because the digital lending world is full of obstacles and irregular activities, I advise you to follow this article to the end so that you will be fully aware of everything before borrowing.

Below is an overview of what you will find in this article:

• Introduction to Loan Apps in Nigeria
• Key Features and Benefits of Loan Apps in Nigeria
• Risks and Challenges Associated with Loan Apps in Nigeria
• Tips for Responsible Borrowing and Financial Management
• Types of Loan Apps Available in Nigeria
• Top Loan Apps in Nigeria
• User Experience and Customer Support
• Security and Privacy Concerns in Loan Applications
• FAQs
• Final Thoughts

Introduction to Loan Apps in Nigeria

It’s good to assume that almost every Nigerian with a smartphone is aware or familiar with loan apps. Even without a smartphone, you will likely hear about it from people around you. That’s to tell you how far the technology of loan apps has gone and how it has impacted our society.

Historically, the development of loan apps or digital lending services in Nigeria dates back over a decade. Some of the early loan apps are Renmoney, QuickCheck, Branch, and Carbon (formerly Paylater), among others.

The emergence of these mobile applications is no doubt a breath of fresh air for many people. They revolutionized access to credit, particularly for individuals and small businesses facing financial constraints.

The appeal of these services to many Nigerians stems from the potential benefits and remarkable features they offer, contributing to the technology’s growth and expansion across the country.

According to the record from the Federal Competition and Consumer Protection Commission (FCCPC), there are about 395 loan apps available in Nigeria currently. Among these, 215 are fully approved, 38 are conditionally approved, 85 are on the watch list, 10 are waivers (licensed by CBN), and 47 are delisted.

Join us as we discuss these loan applications in detail and also bring to you some of the top loan apps in Nigeria for a better borrowing experience!

A Must Check: Full List of Loan Apps Approved by CBN & FCCPC

Key Features and Benefits of Loan Apps in Nigeria

The development of loan applications has sumptuously bridged the gap between traditional financial institutions and the unbanked or underbanked population in Nigeria.

Many people who have been formerly excluded from the traditional banking system due to diverse motives (like lack of credit history or documentation) now have the opportunity to get entry to much-needed funds through these digital lending platforms.

The emergence of this technology has not only bridged the gap but has also fundamentally transformed how lending functions, incorporating various impressive characteristics or attributes.

You will agree with me that, getting a loan as a common man or low-class individual in the olden days was like pulling a teeth. One has to go through the stressful processes of queueing in the bank, providing a guarantor, collateral, and other forms of documentation to access a loan.

In some cases, your loan application may even be rejected. Imagine going through all the stressful processes and in the end getting rejected! But what if you have a pressing financial challenge to settle? You are left with no option but to go around begging for a loan from your relatives.

However, the development of loan apps has completely changed everything for good. You can now borrow money at any time from anywhere, in a very convenient way!

Other Features and Benefits:

• Loan applications offer quick approval and disbursement processes. You can apply and receive your loan in no time flat. No more donkey years of waiting!
• Loan Applications don’t request collateral, guarantor, or other forms of documentation, unlike traditional banks. All you need to get a loan from these apps is just a smartphone and internet connection. However, other credentials like a Bank Verification Number (BVN), Phone number, means of identification, full name, and bank account number are mandatory.
• Most of these loan applications offer an easy-to-go and straightforward application process. You don’t need to be an expert to apply.
• They represent a favorable option for individuals looking for cash to start small businesses or fund their existing businesses, which can serve as a plus to the Nigerian economy.

Read Also: Education Loan in Nigeria: How to Apply & All You Need to Know

Risks and Challenges Associated with Loan Apps in Nigeria

That being said, every rose has its thorn. The emergence of loan apps in Nigeria has undoubtedly blessed us with many beautiful and beneficial features; however, there are also some potential risks and challenges associated with them.

As an individual aspiring to borrow from these apps, it’s crucial to be fully aware of their drawbacks before deciding to borrow. This will keep you on the safer side, enabling you to enjoy only the beneficial aspects of the applications. Remember, forewarned is forearmed!

Without taking much of your precious time, let’s quickly take a look at the risks and challenges associated with loan apps in Nigeria:

1. High-Interest Rates

This is one of the biggest challenges associated with loan applications in Nigeria. Their interest rates are usually higher than traditional banking institutions. Imagine borrowing N12,000 to repay N16,000! Well, this is mostly common in unregulated or fake loan apps.

2. Debt Traps

Borrowers may fall into debt traps if they are unable to repay their loans on time, as late fees and additional interest charges can quickly accumulate, making it challenging to repay the debt.

3. Unregulated Practices

The digital lending industry in Nigeria is relatively new and lacks comprehensive regulation, leaving borrowers vulnerable to predatory lending practices and unfair treatment by loan providers.

4. Data Privacy Concerns

Loan apps often require access to personal and financial information, raising concerns about data privacy and security breaches, especially if the app’s security measures are inadequate.

5. Overborrowing and Misuse of Funds

Borrowing from loan apps is easy and enjoyable just like a walk in the pack! This easy access to credit may encourage individuals to borrow beyond their means, leading to financial instability and difficulties in managing debt obligations.

6. Impact on Creditworthiness

Defaulting on loans obtained through loan apps can negatively impact borrowers’ credit scores, making it harder for them to access credit from traditional financial institutions in the future.

7. Limited Consumer Protection

Borrowers may have limited recourse in cases of disputes or grievances with loan apps, as consumer protection mechanisms and regulatory oversight are not well-established in the digital lending sector.

Read Also: Car Loan in Lagos: Get Your Dream Car Today

Tips for Responsible Borrowing and Financial Management

Now that you have known that borrowing money from loan apps is like a double-edged sword. What are you going to do? Are you going to borrow from these apps or not?

Well, you don’t need to be scared or thinking whatever! By following these tips for responsible borrowing and financial management, you are likely to overcome most of the risks and challenges associated with loan apps in Nigeria.

Let’s take a look at them!

• Understand your financial situation.
• Set financial goals.
• Create a budget.
• Borrow wisely.
• Compare loan options.
• Read the fine print.
• Plan for the repayment.
• Build an emergency fund.
• Monitor your credit score.
• Seek financial advice if possible.

Types of Loan Apps Available in Nigeria

1. Payday Loan Apps

These apps offer short-term loans typically designed to cover expenses until the borrower’s next payday. They are convenient for individuals facing temporary cash shortages.

2. Personal Loan Apps

Personal loan apps provide borrowers with funds for various personal needs, such as medical expenses, home renovations, or debt consolidation. These loans often have longer repayment terms and higher loan amounts compared to payday loans.

3. Business Loan Apps

Business loan apps cater to entrepreneurs and small business owners seeking funding to start or expand their businesses. These loans may offer specific features tailored to business needs, such as equipment financing or working capital loans.

4. Peer-to-Peer (P2P) Lending Apps

P2P lending platforms connect borrowers directly with individual lenders or investors willing to fund their loans. These apps often offer competitive interest rates and flexible borrowing terms.

5. Microfinance Loan Apps

Microfinance loan apps target low-income individuals and micro-entrepreneurs who may have limited access to traditional banking services. They provide small loans to support income-generating activities and improve financial inclusion.

6. Salary Advance Apps

Salary advance apps allow employees to access a portion of their earned wages before their regular payday. These apps help individuals manage unexpected expenses or financial emergencies between paychecks.

7. Asset-Backed Loan Apps

Some loan apps in Nigeria offer asset-backed loans where borrowers use assets such as vehicles, jewelry, or property as collateral to secure the loan. These loans may provide higher loan amounts and lower interest rates compared to unsecured loans.

8. Instant Loan Apps

Instant loan apps provide quick and easy access to funds, often with minimal documentation requirements and rapid approval processes. Borrowers can apply for loans directly through their smartphones and receive funds within minutes.

Read Also: Credit Card in Nigeria: How to Get and All You Need to Know

Top Loan Apps in Nigeria

Below are the top loan apps in Nigeria. Tested and trusted by many users!

1. Branch Loan App

• App Rating: 4.4⭐
• Reviews: 1 million
• App Size: 14MB
• Downloads: 10M+ App Downloads

Branch Loan App is one of the most popular and best loan apps in Nigeria. This lending platform, established in 2015, was founded by Matthew Flannery and Daniel Jung.

With the app, borrowers can get instant loans ranging from N2,000 to N1 Million. Their interest rate is from 17% to 40% with an equivalent monthly interest of 1.5% to 15% and an Annual Percentage Rate (APR) of 18% to 260%, depending on your loan option.

They usually process and approve loans within minutes. No collateral, guarantor, or other forms of documentation. Their loan tenure ranges from 1 to 12 weeks.

Additionally, Branch offers other financial services aside from loans. With their platform, users can send and receive payments, pay bills, and purchase airtime and data bundles directly from their Wallet. They can also invest and earn up to 15% interest.

The loan app is available for both Android and iOS users.

2. Carbon Loan App

• App Rating: 4.3⭐
• Reviews: 158K
• App Size: 27MB
• Downloads: 1M+ App Downloads

The Carbon Loan App is another strong player in the Nigerian digital lending industry. This platform was established in 2016 by Chijioke Dozie, Ngozi Dozie, and Edward Popoola.

They aim to address the financial inclusion gap by offering accessible and convenient credit solutions to underserved populations in Nigeria and beyond.

With the platform, users can get instant loans ranging from N1,500 to N1 Million. Their interest rate ranges from 2% to 30% monthly and an Annual Percentage Rate (APR) of 23% to 68.3%. Their loan tenure typically ranges from a few days to several months, depending on the borrower’s preference and the specific loan product.

One good thing about Carbon is that it provides flexible repayment terms, allowing users to repay loans over a specified period. The platform offers multiple repayment options, including bank transfers and debit card payments.

Additionally, they offer other financial products aside from loans, just as the Branch Loan App. With the platform, users can pay bills and purchase airtime and data bundles directly from their mobile wallets. They can also invest and earn on the platform.

The loan app is available for both Android and iOS users.

3. Fairmoney

• App Rating: 4.2⭐
• Reviews: 591K
• App Size: 25MB
• Downloads: 10M+ App Downloads

FairMoney is more than just a loan app but a microfinance bank. This fintech was established in 2017 by Laurin Hainy (CEO) Matthieu Gendreau (CTO), and Nicolas Berthozat (Product co-founder).

The platform is currently one of the leading lending platforms in Nigeria having over 5 million active users enjoying banking, savings, and investment services.

With Fairmoney, users can access loans of up to N1 Million and up to N5 Million for SME loans. Interest rates are between 2.5% to 30% monthly, and their loan tenure is up to 24 months.

Just like other loan apps mentioned above, Fairmoney usually processes and approves loans within minutes. No collateral, guarantor, or other forms of documentation.

The app is available for both Android and iOS users.

4. Okash Loan App

• App Rating: 4.4⭐
• Reviews: 200k
• App Size: 9.7MB
• Downloads: 5M+ App Downloads

Okash Loan App can not be left out of the top loan apps in Nigeria. This micro-lending product was established in 2015 by Blue Ridge Microfinance Bank.

The platform is known for offering great lending services. It’s tested and trusted by thousands of Nigerians, making it one of the best loan apps in the country and beyond.

With Okash, users can access instant loans ranging from N3,000 to N100,000 and repay within 91 to 365 days. Their interest rate is calculated daily from 0.1% up to 1% with an annual Percentage Rate(APR) of 36.5% to 360%.

One good thing about this platform is that it allows a maximum period of 24 hours from the moment of a disbursement within which the loan can be canceled. This means that if you apply for a loan by mistake, you have the opportunity to clear it within 24 hours.

As of the time of writing this article, the app is only available for Android users.

5. EaseMoni Loan App

• App Rating: 4.5⭐
• Reviews: 224k
• App Size: 9.1MB
• Downloads: 5M+ App Downloads

EaseMoni is also a product provided by the Blue Ridge Microfinance Bank. This loan app is one of the most recent and promising loan apps in the market.

In case you didn’t know, EaseMoni and Okash loan apps are also in partnership with OPay Digital Services Limited. If you ever borrow money from Opay, you are indirectly patronizing their services. OPay, as a platform, doesn’t directly provide loans; instead, all their loans are powered by these two loan apps.

With the Okash loan app, users can access instant loans ranging from N3,000 to N100,000, with a tenure of 91 to 365 days, just like the Okash Loan App. Their interest rate ranges from 5% to 10% monthly with an Annual Percentage Rate(APR) of 60% to 120%. There is no other hidden fee in the whole process.

One thing I love about the EaseMoni loan app is how it simplifies the borrowing process. Users can navigate and borrow money on the platform with ease and within minutes.

They also allow a maximum period of 24 hours from the moment of disbursement within which the loan can be canceled.

As of the time of writing this article, the app is only available for Android users.

6. Renmoney

• App Rating: 4.1⭐
• Reviews: 22k
• App Size: 47MB
• Downloads: 1M+ App Downloads

Renmoney is one of the oldest loan apps apps in Nigeria. This platform, founded by Stephen Jennings, was established in 2012 and operates on a microfinance license in Nigeria.

That being said “old hands at the game know the ropes”, Renmoney has been maintaining the best of the services, and is recognized by many users for delivering convenient credit, savings, deposits, and banking solutions.

They have so far, issued over N132 Billion loans, with over 101,000 people trusting them with their money.

With Renmoney, you can borrow up to N6 million and repay in up to 24 months. Their interest rates range from 2.9% to 34.17% monthly. No collateral, guarantor, or other forms of documentation.

As of the time of writing this article, the app is only available for Android users.

7. KiaKia

• App Rating: N/A
• Reviews: N/A
• App Size: N/A
• Downloads: N/A

KiaKia is a licensed non-banking financial technology company in Nigeria. This platform was founded in 2016 and has now become one of the pioneer digital lending platforms and also the leading peer-to-peer marketplace in Nigeria.

If you are a Nigerian looking for a financial marketplace to access and lend out personal and business capital, then Kiakia can be a perfect platform for you!

With the platform, users can access loans ranging from N10,000 to N200,000 and repay within 7 to 30 days. However, the loan tenure of borrowers with good credit scores and trust points can be increased to a maximum of 18 months. Also, their interest rate is as low as 6.5%.

One good advantage KiaKia has over other lending platforms is that they have simplified the borrowing processes to fit all users. You don’t need to install any app to borrow from the platform. This can be an added advantage to users who don’t have enough storage space on their devices to install loan apps.

Want to borrow on the platform? Simply visit their official website and kickstart by engaging in a conversation with their Virtual Agent, Mr. K!

8. Aella Credit

• App Rating: 3.2⭐
• Reviews: 34k
• App Size: 22MB
• Downloads: 1M+ App Downloads

With Aella Credit Loan App, users can have access to instant loans ranging from N1,500 to N1,000,0000 with a tenor of 61 days to 365 days. Their interest rate ranges from 2% to 20% and their Annual Percentage Rate(APR) is from 22% to 264%.

They also offer other products and services aside from loans. As a user, you can enjoy a quality lifestyle with their affordable healthcare services, upgrade your lifestyle by making use of their secured and convenient payment card, purchase event tickets without stress, buy now and pay later, and grow your wealth on the platform.

The app is available for both Android and iOS users.

9. Kuda

• App Rating: 4.3⭐
• Reviews: 274k
• App Size: 46MB
• Downloads: 5M+ App Downloads

Kuda, in full Kuda Technologies, is more than just a loan app. They operate fully as a microfinance bank in Nigeria and the United Kingdom.

This financial service provider was established in 2019 by Babs Ogundeyi and Musty Mustapha. With the platform, users can make free transfers, enjoy cashless payment options, pay bills, buy gift cards easily, and save and earn returns.

Kuda is also a popular player in the Nigerian lending industry. They give loans up to N150,000 to repay between one to three months, and their interest rate is 0.3% daily. No paperwork, no embarrassment, and you don’t need collateral to get a loan from them.

You can access their services both on their official website and mobile app. The app is available for both Android and iOS users.

10. Palmcredit

• App Rating: 4.2⭐
• Reviews: 173k
• App Size: 8.6MB
• Downloads: 10M+ App Downloads

Palmcredit is another loan app in Nigeria you will love to try! This loan app has been running since 2019 and has made itself to the top having over 10 Million app downloads currently.

The app is a product of Newedge Finance Limited, a CBN-licensed finance company in Nigeria, which is also the founder of Easybuy, Xcash, Xcrosscash, and Newcredit app.

Without a doubt, Palmcredit is one of those apps that simplify the borrowing system in Nigeria. They have streamlined the borrowing process so that users can access loans at any given time and from anywhere.

Their loan limit ranges from N2,500 to N300,000 with a flexible repayment period of 12 to 26 weeks. Their interest rate is 4% to 4.7% per month, while the Annual Percentage Rate (APR) is between 24% to 56%. No collateral. No paperwork and their loans are secure and reliable.

The app is available for both Android and iOS users.

11. QuickCheck

• App Rating: 4.5⭐
• Reviews: 192k
• App Size: 27MB
• Downloads: 1M+ App Downloads

QuickCheck, founded in 2017, is a product of Arve Limited. Just like any other loan app mentioned above, this fintech is fully approved by CBN and FCCPC.

They aimed to bridge the financial inclusivity gap, guarantee credit accessibility, and also support entrepreneurs to achieve their goals and grow.

With Quickcheck, users can never go broke again! Their loan limit ranges from N1,500 to N500,000, with a repayment term of 91 to 365 days. However, you can only access up to N15,000 for a period of 15 to 60 days as a first-time user. Once you repay early, you will unlock high amounts and lower interest rates.

Their interest rate starts from 2% to 30%, with an equivalent monthly interest rate of 1 – 21%. Collateral, guarantor, or other documents are not required. With Just your smartphone and internet connection, you can gain access to instant cash credited directly into your bank account.

As of the time of writing this article, the app is only available for Android users.

12. Lendigo

• App Rating: 4.0⭐
• Reviews: 13k
• App Size: 9.4MB
• Downloads: 100k+ App Downloads

Lendigo is another awesome loan app in Nigeria you will like! Most perfect for individuals looking for small business or SME loans.

This lending platform, established in 2016, aimed to become Nigeria’s leading financial institution dedicated to SMEs through technology and innovative practices.

With Lendigo, small businesses or SMEs can enjoy easy and faster access to working capital based on the requirements and conditions that suit their business and financial desires.

Their loan limit is up to N12,000,000 with a flexible tenure of up to 12 months, and their interest rate ranges from 4.0% to 8.0% flat monthly, including a processing fee from 0.5% to 2.0%.

You can enjoy their services both on their official website and mobile app.

Read Also: How to Get an IPPIS Loan in Nigeria: A Comprehensive Guide

User Experience and Customer Support

I find every reason to discuss the user experience and customer support of loan apps in Nigeria in this article because I believe it will add more to your knowledge concerning this topic and also help you to borrow safely and conveniently.

Just as stated above, there are numerous loan apps in Nigeria. However, not all of these apps offer the desired quality of service or the type of services you may be seeking. In fact, some of these apps are flagged or even delisted by the FCCPC due to various reasons for dissatisfaction, including regulatory compliance concerns, consumer complaints, unethical business practices, lack of transparency, and fraudulent activities, among others.

What am I trying to say? As a user looking forward to borrowing from these apps, it’s highly recommended to research their user experience and customer support before going ahead to borrow.

We may try to conduct our research to serve you with the best loan apps in Nigeria, but it’s recommended you conduct your research to compare and choose the one that matches your expectations. Remember, it’s better to be safe than sorry.

Additionally, many of these apps claim or boast of offering quality services which they are not, and the best way of getting rid of such apps is by checking their reviews.

Where to check reviews or user experience? Visit;

• App store reviews
• Online forums and communities
• Social media platforms &
• Review websites.

Security and Privacy Concerns in Loan Applications

This article will be incomplete without talking about the security and privacy concerns in loan applications.

Yes, it’s accepted that the development of loan apps has helped us in many ways. However, the downside of it such as the security and privacy concerns should not be overlooked.

While some of these loan apps are secured, some are not and may raise potential risks related to data protection and cybersecurity.

Thank God to regulatory authorities, oversight agencies, and stakeholders in the financial industry for their tireless efforts in regulating these apps. At least, users’ security and privacy concerns are guaranteed by 90% with their efforts. But don’t be lazy to thoroughly conduct your research independently to guarantee your safety by 100%.

This research can help you avoid fake loan apps or loan sharks and only patronize legit loan apps in Nigeria. There is a saying that what you don’t know is capable of bringing you down and what you know is capable of building you. So, thoroughly research the security and privacy concerns of any loan app before deciding to borrow!

FAQs

Which loan app is the best in Nigeria?

Deciding which loan app is the best in Nigeria depends on your choices and expectations. What I may consider as the best for me may be the worst for you.

Nevertheless, there are a good number of loan apps in Nigeria that are tested and trusted by many users. These loan apps are generally known for offering the best of the services in the lending industry and are considered the best loan apps by many. A few to mention are:

1. Branch Loan App
2. Carbon Loan App
3. FairMoney
4. Okash Loan App
5. Easemoni Loan App
6. Renmoney
7. Aella Credit
8. Palmcredit
9. Quickcheck
10. Lendigo

Which app gives instant loans in Nigeria?

Many apps give instant loans in Nigeria. In case you don’t know, the provision of quick or instant loans is one of the prominent features of loan apps. It’s like their pride so almost all digital lending applications in Nigeria opt to provide instant loans to maintain the tradition and attract more customers. Some notable loan apps that offer instant loans are Okash, Easemoni, Carbon, Branch, FairMoney, Renmoney, Palmcredit, Quickcheck, etc.

Loan Apps in Nigeria: Final Thoughts

Thank you for following this article to the end! We appreciate your effort and believe that you can now compare, choose, and apply for loans successfully from loan apps in Nigeria.

It’s also good to assume that you are now aware of everything concerning these apps, both their potential benefits and drawbacks, and how to bypass all their obstacles. If in case you have a question or are confused anywhere and need clarification, don’t forget to use the comment section below. You can also contact us directly for any query relating to loan apps in Nigeria. We will be glad to attend to you!

Because this topic is variable to you and us, we will be updating this page frequently for an optimum result. Don’t forget to bookmark the page for an easy return!

Source: Instantmoni.com.