Many loan apps in Nigeria are known for indulging in aggressive debt collection practices, including debt shaming and worst, threats. Therefore, it is mandatory to always do your research for the best loan apps in Nigeria. Many loan apps will disburse your loans to you in minutes but you should always check to see if they are legitimate and are regulated by the CBN.
Some of the important features of the best loan apps in Nigeria include low interest rates, higher loan amounts, easy applications, and app availability on the Google or Apple store. Don’t ever borrow a loan from a lender that does not have their mobile app available on the Google Play store because most of these apps have been banned in Nigeria.
Searching for the best loan apps can be overwhelming and you don’t want to test all platforms doing the practice of try and error. That is why we have helped you narrow down your search to the top 10 best loan apps in Nigeria. Also, you need to be aware of some loan apps that are banned in Nigeria and are no longer licensed by the CBN.
Best Loan Apps in Nigeria
1. Branch
Branch, in my own opinion, is the best loan app in Nigeria due to the features of the app. The Branch loan app is a popular loan app in Nigeria that offers instant personal loans without the need for collateral. Users can download the app, create an account, and apply for loans conveniently from their smartphones. The app evaluates loan eligibility based on user data, including call and SMS history. Branch is known for its quick approval and disbursement process, making it a reliable choice for those in urgent need of funds.
Users can apply for loans ranging from ₦5,000 to ₦200,000, with a repayment period of 4 to 64 weeks. The app uses sophisticated algorithms to assess creditworthiness, taking into account factors like your smartphone data and transaction history.
What makes the Branch loan app stand out from the list is the customer approach. It’s no news that most illegitimate loan platforms in Nigeria threaten and embarrass their users when they refuse to pay up their loans. Some loan apps recently banned in Nigeria like Cashme, indulge in aggressive debt collection practices, including debt shaming. Branch will only remind you of your loans, but even if you don’t pay up, they won’t give you any loan in the future and they don’t indulge in illegal activities like many other loan platforms that call you every single day, screaming and shouting at you. No repayment penalties, what you see is what you get.
The Branch app is available on the Google Play Store.
Branch Features
- Features: Branch offers personal loans without the need for collateral.
- Loan Amount: Users can borrow amounts ranging from ₦5,000 to ₦200,000.
- Interest Rate: Competitive interest rates.
- Application Process: Quick and easy application process through the mobile app.
- Repayment: Flexible repayment options and funds are disbursed directly to the user’s bank account upon approval.
- Credit Scoring: Uses smartphone data for credit scoring.
Pros
- No collateral is required.
- Competitive interest rates.
- Quick application process.
- Flexible repayment options.
- No late payment fee.
Cons
- Loan limits may be lower for some users.
- Late payments may result in increased interest rates.
2. Fairmoney
FairMoney is a versatile loan app that offers personal and business loans. Users can apply for loans ranging from ₦2,500 to up to ₦3,000,000 with competitive interest rates. The app’s user-friendly interface simplifies the application process, and funds are disbursed quickly upon approval. FairMoney also provides educational resources on financial management to help users make informed decisions.
What I like about FairMoney are its competitive rate and higher loan limit. The interest rate is better than that of Branch, and when you quickly pay up your loan, your limit will be instantly increased to a much higher amount. Something I don’t like about FairMoney is its marketing approach. I get it that they want more customers and want people to borrow loans from them, but they shouldn’t be calling someone almost every week to come and take loans. Even if you tell them you don’t need a loan, they will keep persuading you to come and take a loan.
Read our full FairMoney Loan app Full Review
FairMoney Features
- Features: FairMoney provides personal and business loans.
- Loan Amount: Access loans ranging from ₦2,500 to ₦3,000,000.
- Interest Rate: Best interest rates.
- Application Process: User-friendly app for easy application.
- Repayment: Flexible repayment options.
- Credit Scoring: Evaluates creditworthiness based on various criteria.
Pros
- Offers personal and business loans.
- Competitive interest rates.
- User-friendly app.
- Very Reliable.
- Higher loan amount.
Cons
- Too many calls from their agents.
- Late repayments result in a 1% daily interest fee as a penalty.
3. Carbon (Formerly PayLater)
Carbon, formerly called PayLater, is a multifaceted financial app that not only offers personal loans but also provides bill payment services, investment opportunities, and more. It has gained popularity for its user-friendly interface and fast loan disbursement process.
Carbon evaluates borrowers based on creditworthiness, transaction history, and other data points. Users can access loans of up to ₦1 million with flexible repayment plans. The app also offers rewards for timely repayments, encouraging responsible borrowing.
Carbon Mobile App is available for download on Google Playstore.
Carbon Feature
- Features: Carbon provides instant loans, bill payments, and investment options.
- Loan Amount: Users can access loans of up to ₦1 million.
- Interest Rate: Competitive rates, and rewards for timely repayments.
- Application Process: Straightforward application process via the mobile app.
- Repayment: Flexible repayment plans.
- Credit Scoring: Evaluates borrowers based on creditworthiness and transaction history.
Pros
- Instant loan approval.
- Bill payment and investment options.
- Flexible loan amounts and repayment plans.
Cons
- Interest rates can be relatively high for longer-term loans.
- Limited availability to users without a bank account.
4. Palm Credit
PalmCredit stands out for providing short-term loans to users, primarily for covering urgent expenses. The app assesses creditworthiness based on smartphone data, making it accessible to a broader audience. PalmCredit encourages responsible borrowing and offers incentives for timely repayments.
The app evaluates creditworthiness based on mobile phone data, including call and SMS history. Loan amounts typically range from ₦2,000 to ₦100,000, with repayment periods of up to 180 days.
Here’s where you can get the Palm Credit loan app.
PalmCredit Features
- Features: PalmCredit offers short-term loans for urgent expenses.
- Loan Amount: Borrow up to ₦100,000.
- Interest Rate: Competitive rates, with incentives for timely repayments.
- Application Process: Quick and easy application process.
- Repayment: Flexible repayment options.
- Credit Scoring: Assesses creditworthiness using smartphone data and transaction history.
Pros
- Access to quick short-term loans.
- Competitive interest rates.
- Incentives for timely repayments.
Cons
- Limited loan amounts compared to some other apps.
- Frequent borrowing may affect credit score.
5. Renmoney
Renmoney specializes in offering loans without requiring collateral most especially to salary earners and small businesses. It has a straightforward application process, and users can borrow amounts ranging from ₦50,000 to ₦6 million, making it suitable for both personal and business financing. Renmoney boasts competitive interest rates and flexible repayment terms. The app also provides a repayment calculator to help users plan their loan repayments effectively.
RenMoney Features
- Features: Renmoney specializes in loans without collateral.
- Loan Amount: Borrow between ₦50,000 to ₦6 million for personal or business use.
- Interest Rate: Competitive interest rates.
- Application Process: Simple and quick online application process.
- Repayment: Flexible repayment terms with a repayment calculator provided.
- Credit Scoring: Assesses creditworthiness through various criteria.
Pros
- No collateral is required.
- Loans for personal and business use.
- Competitive interest rates.
Cons
- Application may require more documentation than some other apps.
- Loan approval may take longer.
6. Kuda
Kuda is not just a loan app; it’s a full-fledged digital bank that offers overdrafts and personal loans to its customers. The app focuses on providing a seamless banking experience, including features like free transfers, savings accounts, and budgeting tools. Kuda’s overdraft feature allows users to access funds even when their account balance is low, providing a safety net for unexpected expenses.
Kuda Loan Features
- Features: Kuda is a digital bank that offers overdrafts and personal loans.
- Loan Amount: Overdrafts and personal loans are available based on eligibility.
- Interest Rate: Competitive rates.
- Application Process: Seamless and user-friendly banking experience.
- Repayment: Flexible options, with a focus on responsible borrowing.
- Additional Features: Includes features like free transfers, savings accounts, and budgeting tools.
Pros
- Digital bank with overdraft and personal loan options.
- Free transfers, savings accounts, and budgeting tools.
- Seamless banking experience.
Cons
- Loan availability may depend on account usage.
- Overdrafts can lead to high fees if not managed responsibly.
7. Quick Check
QuickCheck is known for its small, short-term loans designed to cover immediate financial needs. The app assesses creditworthiness using various data sources, including smartphone data and transaction history. Users can borrow amounts of up to ₦200,000 and receive funds quickly. QuickCheck emphasizes responsible borrowing and offers rewards for on-time repayments.
Download the Quick Check App here
QuickCheck Features
- Features: QuickCheck provides small, short-term loans for immediate financial needs.
- Loan Amount: Borrow up to ₦200,000.
- Interest Rate: Competitive rates, with rewards for on-time repayments.
- Application Process: Quick and easy application through the mobile app.
- Repayment: Encourages responsible borrowing and timely repayments.
- Credit Scoring: Uses smartphone data and transaction history for credit assessments.
Pros
- Access to small, short-term loans.
- Competitive interest rates.
- Rewards for on-time repayments.
Cons
- Limited loan amounts for larger financial needs.
- Frequent borrowing can impact creditworthiness.
8. Migo (formerly Kwikmoney)
Migo is a reputable loan platform in Nigeria, that borrows loans to their customers via their website. The platform accesses your creditworthiness and may ask for your bank statement to determine the amount of loan to offer you.
Migo does not have a loan app, which means they won’t get access to your phone contact lists, camera, and location. That only means that they don’t practice aggressive debt-collection practices like debt shaming via your contacts and taking pictures of you via your camera, threatening customers.
Migo Features
- Multiple Loan Products: Migo offers various loan products, including personal loans, business loans, and point-of-sale financing.
- Credit Scoring: Migo assesses borrowers’ creditworthiness using alternative data, enabling a broader range of users to access credit.
- Loan Amounts: Users can borrow varying amounts based on their creditworthiness, with higher limits available to responsible borrowers.
- Flexible Repayment: Migo provides flexible repayment options and allows users to pay back loans in installments.
- Interest Rates: The app offers competitive interest rates, making it an attractive choice for borrowers.
- Quick Approval: Migo provides quick loan approvals and disburses funds directly to users’ bank accounts.
Pros
- Wide acceptance.
- Flexible repayment.
- High loan limit.
- Quick access.
Cons
- High-interest rate.
- Late repayment additional fees.
9. Lidya
Lidya Features
- Business Focus: Lidya primarily caters to small and medium-sized businesses, offering tailored financial solutions.
- Business Loans: The app provides business loans to help entrepreneurs cover working capital, inventory, and expansion costs.
- Quick Approval: Lidya offers a quick and streamlined loan application and approval process.
- Credit Scoring: The app assesses the creditworthiness of businesses to determine loan eligibility and terms.
- Flexible Repayment: Lidya provides flexible repayment schedules to accommodate business cash flow.
Pros
- Business focused.
- Competitive business rate.
- Customized Business solutions.
Cons
- Interest rates may be relatively high for longer loan terms.
- Strict eligibility for businesses.
- Business documentation is required.
10. Aella Credit
The Aella Credit app is available on the Google Play Store and App Store.
Aella Credit Features
- Group Lending: Aella Credit offers group lending options, enabling friends and family to join forces and access higher loan amounts together.
- Instant Loans: Users can apply for loans and receive instant approval and disbursement through the app.
- Bill Payment: Aella Credit allows users to pay bills and make utility payments directly within the app.
- Credit Score Building: Responsible borrowing and timely repayments on Aella Credit can help users build their credit scores.
- Interest Rate Reduction: Users can access lower interest rates by referring friends and family to the app.
Pros
- Reduced interest rates for responsible borrowers.
- Quick and convenient access to loans.
- Offers an opportunity for users to build their credit scores.
Cons
- Low limit for new users.
- Strict eligibility criteria.
- Late repayment penalties
Responsible Borrowing with Loan Apps
While loan apps offer a convenient way to access credit, users need to exercise responsible borrowing to avoid falling into a debt trap. Here are some tips for responsible borrowing:
- Assess Your Needs: Before applying for a loan, evaluate your financial situation and determine whether borrowing is necessary.
- Borrow What You Can Repay: Only borrow an amount that you can comfortably repay within the specified timeframe.
- Read Terms and Conditions: Familiarize yourself with the terms and conditions of the loan, including interest rates, fees, and repayment schedules.
- Budget Wisely: Create a budget that includes loan repayments to ensure you can meet your financial obligations.
- Timely Repayments: Always make repayments on time to avoid late fees and penalties and to maintain or improve your credit score.
- Avoid Multiple Loans: Resist the temptation to take out multiple loans simultaneously, as this can lead to financial stress.
How Loan Apps have Helped many Nigerians
The proliferation of loan apps in Nigeria has helped many individuals and businesses in Nigeria. Here are some key ways in which these apps have contributed to greater financial access:
- Accessibility: Loan apps are accessible to anyone with a smartphone and an internet connection, bridging the gap for those in remote areas with limited access to physical banks.
- Speed: Traditional loan applications often involve lengthy processes, whereas loan apps offer quick approvals and disbursements, making it possible for users to address urgent financial needs promptly.
- Reduced Barriers: By offering loans without the need for collateral, loan apps have removed a significant barrier to borrowing, particularly for individuals and small businesses that lack assets to pledge as security.
- Financial Education: Some loan apps like FairMoney provide resources and tips on financial management, helping users develop better financial habits and improve their creditworthiness.
- Incentives for Responsible Borrowing: Many loan apps reward users who make timely repayments, encouraging responsible borrowing behavior.
- Business Growth: For small businesses, loan apps have been instrumental in providing working capital and financing for expansion, contributing to economic growth.
Conclusion
The best loan apps I can recommend to Nigerians any day are Branch and Fairmoney. These two loan apps come with banking functionalities like saving, and investment, and in all, they do not indulge in aggressive debt collection practices like threats and debt shaming. Other platforms on this list are also reputable and regulated by the CBN as well, but they do not come with that many features and flexibility like Branch and Fairmoney.
However, even though the loan platforms do not indulge in aggressive debt collection practices, borrowers should still maintain good loan practices and endeavor to pay up their loans when due.
