Top 10 online loan apps in Nigeria

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November 17, 2024
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11 min read
Top online lending apps in Nigeria

Online loan apps in Nigeria have significantly increased in popularity due to increased patronage by Nigerians, which may not be unrelated to the country’s economic state.

These apps have served as a respite for people looking for quick financial solutions. Despite shortcomings, some of the main reasons they have been so widely adopted include easy accessibility, little to no paperwork, fast fund disbursement, and eliminating the need to walk into a bank.

Key takeaways

  • Nigeria's online loan apps are popular for easy access, minimal paperwork, and fast disbursement.
  • When choosing an app, consider interest rates, loan amounts, repayment terms, and hidden fees.
  • Top apps offer features like instant approval, no collateral, and flexible repayment.
  • Eligibility criteria include age, income, employment, and documentation requirements.
  • Thoroughly research options and understand terms before selecting the best app for your needs.

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Disclaimer: Note that this article is informational and does not endorse any specific app.

Top 10 online loan apps in Nigeria

Carbon

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Here is a summary of Carbon Nigeria's loan offerings:

FeatureDetails
Loan Amount₦2,500 to ₦1,000,000
Repayment Period61 days to 12 months
Monthly Interest Rate4.5% to 30%
Annual Percentage Rate (APR)Up to 195% per annum
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦1,000,000 for 12 months at a 4.5% monthly interest rate results in a total repayment of ₦1,540,000, equating to an APR of 54%.

Carbon app is a mobile banking and loan app provided by Carbon Microfinance Bank (MFB), which is licensed and regulated by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC). 

Unique features: Carbon offers instant loans to applicants at any time of the day. According to Carbon, users are likely to get higher loan offers with low interest rates when they pay back early and perform other app actions, such as saving and paying for services. 

Pros: 

  • Offers instant loans
  • Open 24/7
  • No hidden fees 
  • Intuitive user interface 

Cons 

  • Interest rates may be high at the beginning. 

Eligibility requirements: summarise loan eligibility criteria, including ID, minimum income, or guarantor requirements.

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Branch

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Branch is a personal finance app that enables users to apply for instant loans, pay bills, transfer money, and invest with yields up to 23%

Here is a summary of Branch Nigeria's loan offerings:

FeatureDetails
Loan Amount₦1,000 to ₦500,000
Repayment Period62 days to 1 year
Monthly Interest Rate3% to 23%, depending on the customer's risk profile
Annual Percentage Rate (APR)Up to 181% per annum
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦60,000 at an APR of 181% for 62 days results in an interest amount of ₦18,400, making the total repayment ₦78,400.

Unique features: 

  • Instant approval 
  • Low interest rates 
  • No collateral 
  • Repayment ranges from 4 to 52 weeks. 

Pros:

  • Easy-to-understand interface 
  • No hidden fees
  • Allows users to perform other financial actions

Cons:

  • Has loan limits 
  • Not available on the app store

Eligibility requirements: Branch will require information such as your phone number, bank verification number (BVN), national identification number (NIN) and bank account number. The app will also require access to data on your phone to build your credit score. 

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FairMoney

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FairMoney is one of the leading loan apps in Nigeria. It's powered by the Fairmoney MFB, which is licensed by the CBN and NDIC. The app also offers deposit and bill payment services. 

Here is a summary of FairMoney's loan offerings in Nigeria:

FeatureDetails
Loan Amount₦1,500 to ₦3,000,000
Repayment Period2 to 18 months
Monthly Interest Rate2.5% to 30%, depending on the loan amount, duration, and borrower's credit profile
Annual Percentage Rate (APR)30% to 260% per annum
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦100,000 over 3 months with a total interest of ₦30,000 (30% rate) results in three monthly payments of ₦43,333, totaling ₦130,000.

Unique features:

  • Instant loan approval 
  • No collateral 
  • Offers personal and business loans
  • Offers up to 24 months of loan tenure 

Pros: 

  • Easy to use 
  • Provides users with a Fairmoney bank account 
  • Offers more than loan services

Cons:

  • High interest rates may apply

Eligibility requirements: To qualify for a FairMoney loan, you must be a Nigerian citizen over 18 years old and have it on your mobile device. The loan app will also require some personal information, such as your bank verification number (BVN), employment, income, and credit history. 

Aella 

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Aella has been in digital lending for over eight years and recently upgraded to a microfinance bank. Users can access instant and employee loans with Aella’s loan app. The platform is licensed by the CBN and the NDIC. 

Here is a summary of Aella Nigeria's loan offerings:

FeatureDetails
Loan Amount₦2,000 to ₦1,000,000
Repayment Period1 to 3 months
Monthly Interest Rate2% to 20%, depending on the borrower's credit profile
Annual Percentage Rate (APR)22% to 264% per annum
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦100,000 over 3 months at a 20% monthly interest rate results in a total repayment of ₦160,000.

Unique features: 

  • Enables instant and employee loans 
  • No collateral 
  • Low-interest loan 
  • Can payout up to two million naira 
  • Flexible repayment plans

Pros:

  • Easy to use 
  • Available in the Play Store and the App Store
  • Easy-to-understand app interface 
  • Offers services other than loans to individuals and businesses 

Cons:

  • The app can be buggy sometimes 

Eligibility requirement: After downloading the mobile app, you can open an account with Aella MFB. To do that, you must upload a valid government-issued ID card and provide them with personal information. After opening the account, go to loans on the app and check eligibility, which uses criteria such as your credit history and complete account profile, among other considerations. 

Sycamore

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Sycamore is a fintech platform that allows Nigerians to take loans, offer loans, invest, earn, and pay bills. Its mobile apps are available in the Play Store and App Store. The Nigeria Data Protection Commission (NDPR) has certified Sycamore as audit-compliant. 

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Here is a summary of Sycamore's loan offerings in Nigeria:

FeatureDetails
Loan Amount₦100,000 to ₦5,000,000 for personal loans; ₦500,000 to ₦5,000,000 for business loans
Repayment Period3 to 12 months
Monthly Interest Rate2.3% to 6%, depending on the borrower's credit profile
Annual Percentage Rate (APR)Up to 72% per annum
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦1,000,000 over 12 months at a 5% monthly interest rate results in a total repayment of ₦1,600,000. 

Unique Features: 

  • Offers no collateral in some cases 
  • Has a minimum borrowing amount of ₦100,000 

Pros:

  • No hidden fees
  • Easy to use 
  • Low interest rates

Cons:

  • Only works in Lagos State

Eligibility criteria: To apply for a Sycamore loan, you must be between 22 and 59. You must also open and run an account on the platform, share a verifiable source of income, have a clean record with the credit bureau, and reside in Lagos State.

Kuda

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Kuda started as a savings app and has now become a microfinance bank. It offers savings, payments, and investment services to businesses and individuals. Personal interest loans and overdrafts are also available. Kuda is licensed by the CBN and deposit insured by the NDIC. 

Here is a summary of Kuda Bank's loan offerings in Nigeria:

FeatureDetails
Loan AmountUp to ₦150,000
Repayment Period1 to 3 months
Daily Interest Rate0.3%
Monthly Interest RateApproximately 9% (0.3% daily interest)
Annual Percentage Rate (APR)Approximately 108% per annum
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦50,000 for 30 days at a daily interest rate of 0.3% results in a total repayment of ₦54,500.

Unique features: 

  • Borrowers can take up to ₦150,000
  • Repayment period spans 1 to 3 months 
  • No collateral

Pros:

  • Easy to use 
  • No hidden charges 
  • Has a high-quality user interface

Cons:

  • Doesn’t pay out more than ₦150,000 for instant loans

Eligibility criteria: Applicants must have a Kuda account and go through an automated eligibility check process that will consider their personal information, income, and other factors to determine if they are eligible for a loan and what amount to offer based on the eligibility test result. 

Veend

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Veend is an online loan platform available on both the Google Play Store and App Store. Its app is tailored for civil servants looking for instant, short-term and long-term loans. 

Here is a summary of Veend's loan offerings in Nigeria:

FeatureDetails
Loan AmountUp to ₦5,000,000 for salary-backed venture loans; up to ₦1,000,000 for personal loans
Repayment PeriodUp to 12 months
Monthly Interest RateVaries based on loan type and borrower profile
Annual Percentage Rate (APR)Not specified
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦500,000 over 12 months with a low interest rate results in manageable monthly repayments.

Unique features: 

  • For civil servants 
  • Instant loan approval
  • No collateral 
  • Flexible repayment options

Pros: 

  • Easy to use 
  • No hidden charges 
  • Supports individuals and businesses

Cons:

  • Not available to non-civil servants 
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Eligibility criteria: To be eligible for a Veend loan, you must be a civil servant who receives your salaries through the Integrated Payroll and Personnel Information System (IPPIS) or Remita. 

Renmoney

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Renmoney is a microfinance bank that offers users loans up to ₦6 million through their mobile app. Renmoney is licensed by the CBN, and the deposit is insured by NDIC. 

Here is a summary of Renmoney's loan offerings in Nigeria:

FeatureDetails
Loan Amount₦5,000 to ₦6,000,000
Repayment Period3 to 24 months
Monthly Interest Rate2.49% to 2.9%
Annual Percentage Rate (APR)30% to 90%
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦2,000,000 over 12 months at a monthly interest rate of 2.49% results in a total repayment of ₦2,683,430.

Unique features: 

  • 24/7 access
  • Collateral-free for instant loans
  • Flexible repayment options 
  • Provides personal and business loans

Pros: 

  • Good user interface 
  • Can offer higher amounts 
  • Offers low-interest loans

Cons:

  • A loan may not be disbursed instantly. 
  • Apps can be buggy. 

Eligibility criteria: The applicant must be between 18 and 59 and have a verifiable source of income. The applicant must also reside in the same city where Renmoney has a physical location and have at least one savings or current account with a commercial bank.

QuickCheck

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QuickCheck is another popular lending app in Nigeria, offering people instant loans of up to one million naira at once. The platform is NDPR audit certified and approved by the Federal Competition and Consumer Protection Commission (FCCPC)

Here is a summary of QuickCheck's loan offerings in Nigeria:

FeatureDetails
Loan Amount₦1,500 to ₦500,000
Repayment Period91 days to 1 year
Monthly Interest Rate2% to 30%, depending on the borrower's credit profile
Annual Percentage Rate (APR)30% to 260% per annum
Collateral RequirementNone
Guarantor RequirementNone
ExampleBorrowing ₦100,000 over 6 months at a 13% monthly interest rate results in a total repayment of ₦150,000.

Unique features: 

  • Instant loans
  • Available in the Google Play Store 
  • Flexible repayment options that span up to 12 months 

Pros:

  • Easy to navigate 
  • Fast payout process 

Cons:

  • Apps can be buggy

Eligibility: All Nigerians with an Android phone can apply for a QuickCheck loan, provided they download the app. QuickCheck will also require some information, such as the BVN, among other personal information, before confirming if a person is eligible for a loan. 

PalmCredit

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PalmCredit is one of the most downloaded apps on the Google Play Store. The online loan app is operated by Newedge Finance Limited. 

Here is a summary of Palmcredit's loan offerings in Nigeria:

FeatureDetails
Loan Amount₦2,500 to ₦100,000
Repayment Period14 to 180 days
Monthly Interest Rate4% to 4.7%
Annual Percentage Rate (APR)48% to 56%
Collateral RequirementNone
Guarantor RequirementNone
Application Process1. Download the Palmcredit app from the Google Play Store. 2. Register by providing necessary personal information and completing the Know Your Customer (KYC) process. 3. Apply for a loan by selecting the desired amount and submitting your application. 4. Upon approval, funds are disbursed to your bank account, often within 24 hours.
Repayment Methods- Via App: Log in, navigate to 'My Loans,' select the repayment amount, and pay using your debit card. - Bank Transfer: If app repayment is unavailable, transfer funds to Palmcredit's bank account and provide proof of payment to customer service.

Unique features:

  • No collaterals 
  • Instant loans 
  • Minimum loan of ₦2,500 and a maximum of ₦100,000
  • The loan term may span between 12 and 26 weeks. 

Pros:

  • Easy to navigate 
  • Payouts are fast 

Cons:

  • High interest rates 
  • Reports of disbursement without applying

Eligibility criteria: The platform requires some personal information, including your BVN.

Key features to consider in online loan apps

Interest rates and fees

All online loan apps have interest rates, which are usually in line with the Monetary Policy Rate (MPR) issued by the Central Bank of Nigeria (CBN). It’s essential to consider this when applying for loans, as some apps have unrealistic interest rates that may be difficult to pay back. Ensure you also check for hidden charges, as they aren’t strange occurrences regarding online loans. 

Loan amounts and repayment terms

Various loan apps have caps on the amount that they provide to people applying for loans. Depending on the applicant's credit score, they may have a minimum amount and raise the loan caps. 

It’s also essential to review the repayment terms, as they contain the duration and flexibility of the repayment options, which may be outright or in instalment structures. Usually, the repayment time ranges from one month to 12 months for instalments. Ensure that the repayment terms are practical and realistically achievable. 

Eligibility criteria

This usually includes the age requirements, income, employment status, workplace information, and address, among other information that provides necessary documentation before loan approval. 

Detail common requirements such as age, income level, employment status, and necessary documentation for loan approval.

Application process

The application process may vary slightly from app to app, but it is mostly the same. The first step is to choose a preferred loan app, visit the platform, and click on Apply for Loan. Depending on how well the app is designed, the loan application process is mostly intuitive, and most process payouts in seconds, and some in minutes. 

How to choose the best online loan app

Assess your needs

Evaluate the loan amount required, urgency, and ability to meet repayment obligations.

Compare interest rates and fees

Analyse the total cost of borrowing, including interest rates and any associated fees.

Check user reviews and ratings

Look for feedback from other users regarding their experiences with the app's reliability and customer service. Confirm whether they are FCCPC-approved and licensed by the CBN.

Understand the terms and conditions

Thoroughly read and comprehend the loan agreement, focusing on repayment terms and any penalties for late payments.

FAQs about online loan apps in Nigeria

Which online loan app is the best in Nigeria?

The optimal app varies based on individual needs; however, FairMoney and Branch are frequently recommended due to their competitive rates and user-friendly processes.

What is the easiest app to borrow from?

Loans from platforms like QuickCheck and PalmCredit are known for their straightforward application processes and quick approvals.

Which app allows me to borrow money instantly?

Apps such as Carbon, Branch, FairMoney, Kuda, and others above provide instant loan options, with funds disbursed promptly after approval.

Conclusion

Many of Nigeria's top online loan apps offer additional functionalities like savings, investments, and bill payments and are certified by the CBN. Some apps cater to specific groups, like civil servants, while others have higher loan caps.

Having highlighted the leading loan apps in Nigeria, choosing one requires you to carefully assess your financial needs, compare the available options, and thoroughly understand the terms and conditions before selecting an app. Ensure you can comfortably repay the loan within the stipulated time to avoid penalties or negative consequences.

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