The world has become a global village, with everything online it seems like one can reach the stars with just a fingertip. From vendors making good use of the social media platforms to customers looking for quicker and easier means to buy goods and pay for services, people have become so accustomed to doing things on the phone that they cannot imagine a world without it.
This has opened up a wide range of business opportunity as everyone seems to be in a race to reach her
targeted audience. It is no surprise that the financial sector isn’t left out of the race. With the continuous advancement in technology, the financial industry has advanced from traditional banks to online banking and now loan apps run by financial institutions.
As the cost of living in Nigeria increases, more Nigerians are looking at loan companies for some sort of financial relief. Top among the services they provide is the loan app, which has become incredibly popular due to its speed, ease of use and convenience when it comes to financially empowering businesses and individuals with short -term loans.
In this article we seek to provide an extensive overview of the top loan apps in Nigeria and why they are most sort after by persons in need of financial assistance. Before we discuss that let us first look at the requirements for online loan applications.
Requirements for Online Loan Applications
Loan apps truly has made the application process much more convenient for applicants. One no longer needs to be physically present to apply for a loan. However, there are certain criteria and documents required to make one eligible for a loan. These criteria vary depending on the loan app of choice.
To enhance your chances of loan approval, the following requirements are essential:
1. Age range: To ensure that the applicant is capable of entering into a financial contract, most loan apps have an age limit of 18 years. Other even have a higher age requirement of at least 21 years and not more than 60years of age. This is to ensure that the applicant is legally capable to consent to a loan agreement and will be capable of repayment.
2. Identification Documents: In order to be eligible for a digital loan in Nigeria, applicants must be a Nigerian citizen residing in Nigeria. To ensure a secure transaction, a Valid ID is required to be uploaded to the loan site. Therefore ensure you have your IDs in soft copies, this may include National ID, Passport or Driver’s license. Additional information such as your Bank Verification Number (BVN) and National Identity Number (NIN) may be requested by the lender. This is typically required to prove your identity and ensure that only Nigerians have access to these loans.
3. Employment Details: Although this is not a requirement by all loan apps, some lender require that the borrower must be employed or self-employed. This is to determine the lender’s financial capacity to meet the repayment terms. Applicants might be required to upload evidence of their employment status, these documents may include employment letter, current work ID or business registration.
4. Communication: This is another requirement by loan apps when applying for a loan. They will require you to provide a means for them to reach out to you. Make sure to provide an active phone number and email address which will make communication easier for both parties.
5. Income proof: Most loan apps require proof of income during application. This is simply to vet the financial strength of the individual and a means of accessing if they can meet their repayment obligation. Applicants are usually asked to provide documents such as salary slips, bank statements or tax
returns to prove their income.
6. Credit history: This plays a significant role in the loan application process, as loan apps consider the applicants credit history to determine their eligibility for the loan. In order to vet creditworthiness, lenders will check the credit reports of the applicants. Timely repayment on previous loans will show a good sense of financial responsibility and increase the applicant chances of getting the loan approved.
Factors to Consider While Choosing a Loan App
There are a lot of online loan apps in Nigeria and this can make choosing the right loan app difficult. This is why it is important to consider the factors below in order to find a suitable fit and make an informed decision.
◼ Interest rate: It is important to carefully compare the different interest rates of the loan apps you are considering. You should select one with the best interest rate that fits your financial capacity. The total cost of the loan will be greatly affected by the rate, so choose wisely.
◼ Duration of loan: Every lender has their specific time frame for the repayment of a loan, this will depend on the type of loan in question and the policies of the loan app. You should carefully consider if the duration for repayment is suitable for you as failure to meet up may incur extra fees.
◼ Safety of your data: The privacy of your personal information should be of utmost concern to you. Before choosing a loan app, check for their policy on data privacy so as to avoid your personal information ending up in the wrong hands.
◼ Reputation: Before choosing a loan app, one should consider their track record. Read other customers’ review and verify that the app is registered by the FCCPC.
Top 12 Loan Apps in Nigeria
In Nigeria today, there are over 200 loan apps approved by the Federal Competition and Consumer Protection Commission (FCCPC). However, choosing a loan app that suits your financial strength, has an easy application process and can carter to your specific loan needs can be complex. This is why we have
categorized the top loan apps into these three groups below;
Top 5 loan Apps with Low Interest Rate
If what you are looking for is to borrow money from a loan app with a low interest rate. Then you should check out these top 5 loan apps in Nigeria with low interest rate;
1. FAIRMONEY (Rating 4.4)
This is the number one most downloaded fintech app in Nigeria. With the aim to help the average Nigerian with the right tools to meet their financial goals, Fairmoney was launched in 2017 and is licensed by the Central bank of Nigeria and insured by the Nigerian deposit insurance corporation (NDIC).
One thing that makes this app stand out is their low interest rates and quick loans processed in minutes. Truly in a time of financial difficulty borrowers have appreciated their no collateral and no documents policies. Below are some key features;
Key Feature
Interest Rate: A monthly range of 2.5% to 30% or 30% to 260% annual percentage rate (APR).
Loan Amount: 1,500 to 3,000,000 for personal loan and SME loans up to 5,000,000 naira.
Loan Term: 61days to 24months
Types of loan: Personal and business loans
Requirements: (For personal loans) Bank verification number (BVN), Proof of employment (either salary, self-employed or students), phone number, debit card.
For businesses Loans: 6months Statement of accounts, Valid ID, Current address, CAC document, Passport photograph or selfie.
Age: 18 to 65years
Location: Lagos, Nigeria.
Pros:
⚫ Easy application and disbursement process
⚫ Competitive interest rate
⚫ No documents needed for personal loans
⚫ Long loan repayment duration
Cons:
⚫ Complex mobile app interface
⚫ Low maximum loan limit for new borrowers
⚫ Extra fee for extension of loan
2. CARBON (Rating 4.2)
This is a prominent financial services provider that offers instant loans and other financial service to its users through a digital platform. Since its launch in 2016, they have empowered people with the financial access they need to pursue life. They offer loans to individuals with no collateral or guarantor, no
hidden fees and the option to unlock higher loan amount by repaying early. The following are important key features to note:
Key Features
Interest Rate: 4.5% to 30% monthly depending on the loan amount, borrowers’ profile and information entered on the application. A max APR is 195% per annum and SME loans between 4% to 5%.
Loan Amount: 2,500 to 1,000,000 naira
Loan Term: 61days to 12months
Types of loan: Personal loan and business loan
Requirements: Government issued ID, BVN, Proof of income (statement of account), Phone Number and Valid Mail, Active Bank Account, Current Residential Address, Business Name Certificate (for business loans).
Age: 18-55years
Location: Lagos, Nigeria.
Pros:
⚫ Competitive interest rates
⚫ Relatively long loan terms
⚫ Provides unsecured personal loans
⚫ They do not harass debtors
Cons:
⚫ Stricter loan application compared to other instant loan apps
⚫ Loan interest rate is based on creditworthiness
Recommended: Top 10 Best Loan Apps In Nigeria With Fast Payment
3. Renmoney (Rating 4.1)
Since its launch in 2012, the Renmoney app has aimed to deliver convenient credit, savings, deposit and banking solutions to its users through technology. Operating as a licensed microfinance bank, Renmoney has surely become a reputable loan app due to its fast and affordable lending services. Assuring borrowers an easy and straight forward application process with no collateral and no guarantor needed. If you are considering using this app then the following features should be considered.
Key Feature
Interest Rate: 2.4% to 9.33% monthly or 30% to 90% APR
Loan Amount: 5,000 to 6,000,000 naira
Loan Term: 3 to 24 months
Types of loan: Personal loan and Business loan
Requirements: Government issued ID, Utility bill, Bank statement, current address and Proof of employment (these requirements vary according to your loan choice)
Age: 18-59years
Physical Location: Lagos, Nigeria
Pros:
⚫ No documents required for small loan
⚫ High maximum loan amount
⚫ Quick turnaround time for loan request
Cons:
⚫ Eligibility depends on steady income
⚫ User restriction based on location
4. QuickCheck (Rating 4.5)
This is a lending service that is focused on increasing the access to credit for Nigerians. Quickcheck which is commonly known as entrepreneurs’ favourite banking experience, aim to provide instant disbursement, flexible loan duration and easy repayment of loans using multiple channels. Below is more information
about the app;
Key Feature
Interest Rate: 5% on first loan then reduces to 2%- 30% monthly
Loan Amount: 1,500 to 500,000 naira
Loan Term: 91 days to 12months
Types of loan: Personal loan and business loan
Requirements: Valid phone number, proof of address, national id
Age: 18years minimum
Location: Lagos, Nigeria
Pros:
⚫ Multiple channels of repayment
⚫ Quick application process
Cons:
⚫ Not available on apple (IOS) store
⚫ Limited loan amount for first time borrowers
5. AELLA (Rating 3.3)
This app was founded in 2018 and has quickly become a well-known instant loan and bill payment platform among Nigerians. With over two million downloads and 100,000,000,000-billion-naira loan disbursed, ALLEA has surely made a name for itself in the online banking sector. Other relevant information is listed below.
Key Feature
Interest Rate: 2% to 20% monthly and APR from 22% to 264%
Loan Amount: 2,000 to 2,000,000 naira
Loan Term: 61days to 365 days
Types of loan: Personal loan and business loan
Requirements: Government issued ID, BVN
Age: Minimum of 18years
Physical Location: Lagos, Nigeria
Pros:
⚫ Affordable loans available
⚫ Loan options for small and medium sized businesses
Cons:
⚫ Hidden fees may apply
⚫ Poor customer service
Top Loan Apps in Nigeria for small business loans
If you have a small business that is in need of urgent cash, maybe to save it from dying or for expansion then approaching a traditional bank for a loan may not be your best bet. This option usually involve tons of paperwork, longer waiting period and request for collateral.
With a lot of online lending platforms now available, small business owners can access loans quicker and easier. It is important to note that not all lending platforms have the capacity to give out loans to small businesses, this is why we have narrowed the field by choosing the top loan apps for small business loans in Nigeria.
6. KIAKIA (Rating 2.8)
This is one of Nigeria’s pioneers of the peer-to-peer lending marketplace that offers secured and unsecured loans to mostly micro, small and medium businesses. Through the KIAKIA peer-to-peer app, individuals can lend money to businesses in need of credit in a safe and secured way.
With over 12,400,000,000 naira lent out and receiving the InFINCA award for the best peer-to-peer
platform in Nigeria in 2019, KIAKIA truly has made a name for its self as one of the top loan apps for small business loans in Nigeria. The following are other important information about the app;
Key Feature
Interest Rate: 5.6% to 24%
Loan Amount: 10,000 to 200,000 naira
Loan Term: 7days to 30 days for first time borrower can increase to a maximum of 18months based on credit score and trust points
Requirements: Proof of income (SMS, email or electronic bank statement of 6months, evidence of verified source of income (employed or running a business), valid ID, BVN.
Age: Minimum of 21years
Physical Location: Abuja, Nigeria
Founded: 2016
Pros:
⚫ Competitive interest rate
⚫ Simplified loan application process
Cons:
⚫ Do not grant students loans
⚫ Loan process charge
7. LENDIGO (rating 4.0)
This is an online lending platform that offer businesses flexible loans without collateral. Lendigo loan app aim to provide financial solutions that ensures financial security, liquidity and growth for business owners unable to access loan from traditional banks.
They offer a variety of loan products from small business loans, to distributor financing and even E-commerce merchant loans there by making loans accessible to a lot of businesses. Below are notable key features.
Key Feature
Interest Rate: from as low as 3.5%
Loan Amount: 100,000 – 10,000,000 naira
Loan Term: 6months to 12months
Requirements: CAC documents, Statement of account, Valid ID
Physical Location: headquarter Lagos, Nigeria
Founded: 2020
Pros:
⚫ Flexible repayment terms
⚫ No collateral requirements
Cons:
⚫ Processing fee and security deposit applies
8. ALAT by WEMA (Rating 3.9)
This is a digital banking platform that provides end-to-end banking services and grants instant loans to small and medium enterprises through their app. It has a range of suitable business loan options that helps businesses grow and meet their crucial needs. Below are the requirements and other key feature about the app;
Key Feature
Interest Rate: from as low as 2%
Loan Amount: 100,000 – 2,000,000 naira
Loan Term: 3months to 24months
Requirements: CAC document. Active business bank account with ALAT or Wema, NIN, BVN
Physical Location: Lagos, Nigeria
Founded: 2017
Pros:
⚫ No collateral needed
⚫ Competitive interest rate
Cons:
⚫ Must have an active business account with Wema or ALAT
⚫ Complains of bugs on the app by customers
⚫ Loan approval may take longer than other instant loan apps
9. ZEDVANCE (Rating 3.0)
This is a financial technology company that provides short term loans to salary earners and small businesses, offering a variety of loan products. Zedvance has quickly made a name for itself as one of top loan apps in Nigeria. One thing that stands out about this app, is the multiple channels available for borrowers to apply for a loan such as website, USSD code, WhatsApp and of course the mobile
app known as MoneyPal. Further information about the app can be found below;
Key Feature
Interest Rate: 3% to 4% for higher ticket loans
Loan Amount: up to 5,000,000 naira
Loan Term: 61days to 365days
Requirements: Business name, Valid ID, statement of account, BVN, good credit history
Physical Location: Lagos, Nigeria
Pros:
⚫ Transparency
⚫ Multiple channels for loan application
Cons:
⚫ Management fee applies
⚫ Zedvance may report defaulters to credit bureau
Best Online Loan Apps in Nigeria for Urgent Cash
With the current hardship in Nigeria, more and more people are faced with the need for urgent financial relief. Seeking a loan which usually isn’t the first choice for most people now seems to be the best choice in cases of emergency, irrespective of the high interest rate these loan apps usually offer. Whether you
need urgent 2k or 50,000 naira, below are the best loan apps that offer instant loans;
10. BRANCH (Rating 4.5)
This is one of the most popular online banking apps in Nigeria, that provides access to instant loans with no collateral. If you are in need of urgent cash, Branch loan app is definitely one to consider. With a reputation of quick loan disbursement and user-friendly app interface, Branch surely has proven to be
one app Nigerians can rely on for emergency funds. Below are some key features of the app;
Key Feature
Interest Rate: 2.8 to 23% monthly, 34 to 272% APR
Loan Amount: 2,000 to 500,000 naira
Loan Term: 4 to 52 weeks
Requirements: Valid personal identification, NIN, BVN etc.
Physical Location: Lagos, Nigeria
Pros:
⚫ Quick disbursement of loans
⚫ No collateral needed
⚫ User friendly app
Cons:
⚫ Late or roll over fees
⚫ Low initial maximum loan amount for first time borrowers
⚫ Branch may report loan defaulters to credit bureau
11. OKASH (Rating 4.4)
This is a licensed online lending platform powered by Blue Ridge Microfinance Bank Limited, that provide fast loans without bulky documentations. Since its release in 2019, Okash loan app has provided first time borrowers with a relatively high loan amount without collateral. Although it has a rather high interest rate, Okash does give out instant loans to its users, making it a go to loan app for those seeking quick loan disbursement. Additional information about the app can be seen below;
Key Feature
Interest Rate: 3% to 15% monthly or 36.5% to 360% APR
Loan Amount: 3,000 to 1,000,000 naira
Loan Term: 91days to 365days
Requirements: Valid ID, Valid bank details, BVN
Age: 20-55years
Location: Lagos, Nigeria
Pros:
⚫ No collateral or paperwork
⚫ Opportunity of loan cancellation 24hours after disbursement
Cons:
⚫ Age restriction
⚫ Poor customer service
12. IRORUN (Rating 4.3)
If you are seeking an instant small loan, then IRORUN loan app is for you. Offering users varying small loan options, with fast application and disbursement process. Irorun promises users access to higher loans as they continue to repay existing loans on time and exclusive interest free loans for VIP customers
(although there is no clear definition of what makes one a VIP customer). Check below for other information about this app;
Key Feature
Interest Rate: 10% to 30%
Loan Amount: 1 ,000 to 50,000 naira
Loan Term: 3days to 90days
Requirements: Government issued ID, Debit card, BVN
Physical Location: Lagos, Nigeria
Age: 21years
Pros:
⚫ Offers quick loans
⚫ Transparency
Cons:
⚫ Non-refundable processing fee
⚫ High interest rate
Conclusion
It is important to note that your financial safety should be your first priority, so seeking a loan should be done only after all other options are exhausted. Your reason for applying for a loan and how you intend to pay back the loan are things to consider even before choosing a loan app.
While a loan can be a source of financial relief for you, note that for the loan app it is a business and they are very much interested in making profits so be careful not to be entangled in a loan contract that shifts from a financial relief to a financial burden.
No matter how enticing their interest rate and loan terms may seem, it is paramount that you do further research and seek counsel where necessary. This article should not be viewed as a professional advice but a step towards the right direction in your journey to finding the best online loan app for your financial goals.