Many online loan apps offer quick credit facilities, ranging from N5,000 to N100,000, depending on the type of loan you wish to borrow, whether it’s for personal or business purposes.
In this post, we have compiled a list of the best loan apps in Nigeria as of 2024 with low interest rates, along with the process of getting a quick loan.
Rest assured that the apps on this list are genuine, legitimate, and authentic. These apps have been tested by various users including me, ensuring that they operate in line with international standards.
What do I need to get a Loan??
To apply for a loan, you only need to provide your personal information, educational and work background, business details, and identification documents.
Providing them further increases your chance of getting a loan from online lending apps. Always make sure you use valid information about yourself.
What types of loans are offered by Online Loan Apps?
Online loan apps typically offer two types of loans, namely business and personal loans, depending on the borrower’s background. If you don’t own a business, it’s advisable to opt for a personal loan.
When applying for a personal loan, ensure that your information and data are complete and up-to-date. Providing false information or attempting to conceal your identification can result in your loan request being rejected.
Since online loan apps use credit scores and other metrics to determine loan eligibility, they primarily offer personal loans. However, if you’re a business owner seeking a larger loan amount, bookmark this website as we will discuss more loan apps for businesses.
What is a credit score?
A credit score is a metric that online loan apps use to calculate an individual’s loan eligibility before approving their loan request. This metric depends on various factors, including the number of times the borrower has used the app, their past credit score with the company, their activities with other loan apps, and their ability to repay on time, among others.
It’s important to note that the credit score can differ depending on the lending company, as they may use different metrics to calculate. Therefore, it’s crucial not to solely rely on the credit score before making a loan request.
Requirements for taking a loan with Online Loan Apps
I will now provide you with the essential loan requirements that are standard documents required before obtaining a loan from online lending apps. These documents are commonly possessed by every Nigerian, and it’s important to have them to increase the chances of your loan request being approved.
1: BVN
Before requesting a loan, you must possess a Bank Verification Number (BVN). Obtaining a BVN is a straightforward process as almost every citizen of the country has one. If you don’t have a BVN, it may be because you’re not a citizen.
Ensure that you have your BVN ready as it’s a crucial requirement for accessing the loan. It’s typically the first document that you’ll be asked to provide during the loan application process.
2: Phone Number
It’s important to avoid providing false information when using these loan apps. The apps listed here are trusted and reliable options for obtaining quick loans in Nigeria with minimal effort required.
Therefore, ensure that you provide accurate information when applying for a loan, including a valid phone number. Adding your phone number makes it easier for the company to reach you for further communication about your loan request, should they require any additional information from you.
3: Phone Number of Next of kin
Another crucial piece of information you’ll need to provide is the phone number of your next of kin. This detail is essential and significantly increases your chances of securing the loan.
4: NIN
Additionally, you’ll need to upload your NIN document and its digit number to allow the lender to verify the information you’ve provided. That’s why I emphasized the importance of not including false information when completing the loan application form since it can be detected using the NIN you provided.
5: Internet access
Please keep in mind that you must have access to the internet when applying for a loan. Without it, you won’t be able to submit your loan request.
6: Date of Birth
Note that your date of birth must match the information on your BVN. If there’s a discrepancy, your loan application may be rejected.
In addition, some loan apps may require you to link your credit card before accessing the loan. If you trust the app, you can go ahead and link your card. However, if you’re not comfortable with it, it’s better to look for another loan app from the list.
7: Phone numbers of guarantors
By agreeing to apply for a loan through the app, you consent to provide the contact information of individuals whom the loan app can contact in case you default on your payment. However, rest assured that the app will not send unsolicited messages to your contacts as they are legitimate.
To increase your chances of getting approved for the loan, it is recommended to add at least four contacts as guarantors.
What are the consequences of not paying Online Loan Apps on schedule??
The consequences of not paying on schedule depend on the loan app you are using. Some online loan companies add a penalty fee to any amount you borrow, and the fee is calculated based on a percentage of your loan amount and repayment tenure. The percentage can be higher for larger loans.
However, not all companies operate this way. Defaulting on your loan will result in paying more money than your usual loan, so it is essential to repay on time to avoid additional fees.
Keep in mind that there are consequences for not repaying the loan on time. Some loan apps do not have penalty charges or fees, and you can learn about one of them right now.
Top 10 Best Loan App in Nigeria with low Interest Rates
Having looked at all the requirements and conditions to meet before making a loan request, let me guide you through some of the available loan apps and discuss the best ones on the market so that you can make an informed decision for your business.
Which online loan apps are the best in Nigeria?
Let’s find out now!
1: Umba
Umba is the top online loan app in Nigeria, thanks to its unique features and low interest rates that benefit all users.
For those who are new to online lending apps, Umba is an excellent starting point.
They have no penalty fees, low interest rates, and excellent customer support.
Umba is a reputable and dependable app that provides credit up to N30,000 to first-time borrowers.
Their services are top-notch, and I would recommend them to anyone. I’ve been a customer for several months now, and their services and customer support are exceptional. They are ranked first on my list of the best lending apps in Nigeria.
2: Branch
Branch is a well-established loan app that has been serving Nigerian businesses and individuals for years. If you need quick and hassle-free funding, then Branch is the perfect choice for you.
In addition to being one of the most popular loan apps, they also offer larger loans to business owners, making them the ideal platform for entrepreneurs.
The loan duration varies based on the personal and business information of each customer. However, the more you repay your loan on time, the higher your credit score will be with Branch.
3: Carbon
Carbon, the pioneer of online lending, is one of the leading loan apps in Nigeria. One of its main features is giving out loans ranging from N10,000 to N30,000 to first-time borrowers.
With low-interest rates, excellent customer service, and a user-friendly app interface, it’s one of the best loan apps in Nigeria.
To start your loan journey, you’ll need to download the app from the Play Store and log in with your credentials for verification. Once your application is successful, you’ll be granted a loan.
4: PalmCredit
There are numerous excellent apps you can consider for your business and Palmcredit is definitely one of them. However, if you are a first-time borrower, they may only offer you a small loan amount.
By paying on time, you will have access to bigger loan offers. Once you are ready to make your first loan, you can find the app on the Play Store.
Simply go to the Play Store, search for Palmcredit, download it, and grant permission to access your device location.
5: Migo
Migo is another great online loan application that is exclusively available on the web. To apply for a loan, visit the website https://my.migo.money/ and fill out the application form. Once you’ve completed the application, the system will calculate your potential loan offer.
I personally like Migo because their website is user-friendly, and their interest rates are very low compared to other platforms like Palmcredit. However, you will only have access to small loans the first time you borrow. As you continue to borrow and pay back on time, your credit score with them will improve, and you may be offered larger loans to scale your business.
6: Okash
To begin using Okash, which I highly recommend for new borrowers, you need to download the app from the Play Store and complete a quick registration process that should take no more than 5 minutes.
The app is extremely user-friendly, and you will have a longer loan repayment period, usually between 15 to 28 days.
To get started, simply search for “Okash” on the Play Store, download and launch the app, grant permission when requested, and then enter your details.
Overall, Okash has improved its services and is now better equipped to help you grow your business. It’s a fast and easy-to-use platform.
7: Renmoney
There are many great options available when it comes to apps that provide loans for small and large business owners, and Renmoney is one of the best. Starting with Renmoney is as simple as ABC. Firstly, download the app from the Play Store or App Store. Once the app has been downloaded, follow the step-by-step process to begin receiving your loan.
Renmoney is highly recommended and regarded as one of the best loan providers in Nigeria. Their interest rates are very reasonable and compatible with all categories of businesses.
8: Quick Check
For individuals and small business owners who need a quick loan, Quick Check is an excellent option to consider. It is one of the leading lending companies in Nigeria, with various partners located across the country for easy loan assessments.
Although the loan amount initially starts from N3000 to N5000 for first-time borrowers, it can increase for those with good credit ratings. Overall, Quick Check is highly recommended due to its professionalism and user-friendly system, which makes it accessible even for those new to borrowing.
9: Aella Credit
Aella Credit is a fintech company that offers quick and easy loans to both individuals and businesses. In addition to lending services, the Aella app can also be used for airtime recharge, bill payment, and subscriptions.
Currently, the company is still offering loans, which can be accessed through the app or by visiting their website. With their fast loan approval process, Aella Credit is among the top loan apps available in Nigeria. If you want to get started, simply visit their website or download the app from the Play Store.
10: NewCredit
Last but not least on the list, and perhaps one of the most popular loan apps in Nigeria, is NewCredit. This app has a fantastic lending history, having already provided loans exceeding N6 million to both individuals and businesses. Their loan tenures range from 14 to 28 days.
To get started, simply download the app from the Play Store and register with your real information. One of the reasons why NewCredit is considered one of the best loan apps is because they offer higher loan amounts, even to first-time borrowers.
That’s A Wrap!
Please note that before requesting a loan from any of the aforementioned online loan apps, it is important to conduct your own research before making a decision. While the advice on this page is accurate and correct, loan apps can be strict, and we cannot guarantee that your loan request will be approved.
This article was written to assist the general public in making better decisions when it comes to online lending.
