6 Top Loan Apps In Nigeria That Offer Low Interest Rates

Best Loan apps in nigera
Looking for the best apps and platforms for instant loan in Nigeria?

If you are looking for a low-interest loan, there are a number of great options available to you. In this article, we will take a look at some of the top loan apps in Nigeria that offer low interest rates.

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 the loan. Loans come with incurred 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.

Why Are Loans Popular?

People experience and struggle with fresh financial issues every day, and the only option is to find viable solutions. When you are challenged with bunch of financial problems, the best bet is to source for funds from family and friends, or to resort to borrowing money from a lending institution.

Basically, loans are emergency problem solvers; they could help you clear up financial issues while you wait for payday.

What To Know Before Borrowing Money

There are a few things you should keep in mind before you sign up for a loan from any lender;

  • It is important to find a loan app that offers low interest rates so that you can afford to repay the money debt-free.
  • Be realistic about your income and expenses. Don’t borrow more than you can afford to repay in a timely manner. Most loan apps reward borrowers who pay back early by increasing their borrow limit.
  • Remember that interest rates on loans increase over time, so make sure you plan to repay the loan as soon as possible.
  • A loan should be your last resort. Do not make it a regular habit.

Nowadays, there are many great loan apps in Nigeria that offer low interest rates. Let’s take a look at some of them:

Getting Loans With Loan Apps In Nigeria

A lot has changed with time and technological advancements. Now, you can take loans without paperwork or collateral from the comfort of your home with the help of your smartphone.

You don’t have to queue up in a bank or fill unnecessary papers because there are loan apps that will lend you money at any time of the day.

Top Loan Apps To Get Loans Without Collateral In Nigeria

In Nigeria, there are a lot of loan apps and the sole aim of this article is to point the best out of the ‘many’. This blog post will focus on how they work and what their loan procurement entails.

At the end of this article, you will know some of the top loan apps you can use to loans through your phone. You will also learn the procedure to successfully apply for your first loan from these loan apps.

Below is my list of the top five loan apps in Nigeria;

  • Carbon (formerly Paylater)
  • Palmcredit
  • Branch
  • Quickcheck
  • Aella credit
  • Kuda Bank

Carbon (formerly Paylater)

Carbon loan app

Carbon is one of the top loan apps in Nigeria. This platform has been in existing for over 5 years, providing easy loans to Nigerians. Loan decisions are quite easy and usually take 15-20 seconds evaluate.

The loans are distributed through an android or IOS mobile app. It’s safe to say that you need a smartphone to access Carbon as you can do only little with the websites. Carbon is 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 your BVN registered phone number for transactions. You can get between #2,500 to #20,000 as a new applicant on the Carbon app.

Your timely repayment the loans you take paves way for an increased loan offer. Monthly salary earners and business owners can borrow as high as #500,000 on the Carbon app. 

Why Carbon?

They make borrowing easy. their loan application process does not require paperwork or collateral. All you need is a smartphone, internet access and your BVN details. The interest rate for Carbon ranges from 28%-31%.

Unlike most unhealthy loan apps, Carbon respect their customers and do not harass them when they are unable to pay on the loan due date. They are considerate and have a splendid customer support.

Carbon is sitting pretty as my first recommendation on the top 7 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

Branch

Branch loan app

Branch is one of the loan apps in Nigeria, Kenya and India. This app is an amazing app for personal loans without collateral. Their loan offer starts at a thousand naira 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 it doesn’t get approved, you will need to wait for 15 days before reapplying. Branch interest rate ranges from 14-28%. Like Carbon, you need to register with your BVN phone number. 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

Aella loan app

Aella Credit Loans are personal loans created to help people achieve their financial independence. The app is available only on Android and IOS phones. 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 their services are restricted to employees. To borrow funds 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’ll 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

QuickCheck

QuickCheck 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 cash 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 or your requirements.

This platform uses a credit scoring system to determine if applicants deserve loans at the time of application. If you aren’t eligible for a loan after the credit check, you’ll have to wait for 14 days before applying again.

You’ll 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

PalmCredit loan app

Palmcredit, is an android app that makes it easy to get 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, 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’ll 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 Loan

While Kuda Bank is not an outright loan app, you can get access to an instant short 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 The Best Loan Platform

Having stated the leading 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 this sort of 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 platforms user-friendly; there is unlimited access to its 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.

Should You Trust These 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 you have to be wary of,  but these organizations listed here will have asolutely no access to your bank accounts via your BVN. They only require the number to verify that you the genuine owner of the bank account provided.

Your BVN only assures that they are dealing with a real human who would be willing to pay up for loans collected.

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’ve 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, this recommendation 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, apply for funds within your capacity and don’t make it a habit