Best Loan Apps in Nigeria: (2024)

Interested in getting a quick and secured loan? Here is a list of some of the best loan apps in Nigeria.

Loan apps are the easiest way for people to access loans to take care of their financial needs. Designers created these apps to be user-friendly, ensuring a quick and easy loan application process for users.

Loan apps became popular in Nigeria because of their ability to provide users with different loan options, and they also made it easy for people to access and pay back loans conveniently from the comfort of their homes without having to go through long bank processes.

Why Are Loan Apps Popular in Nigeria?

Loan apps became popular in Nigeria because of their ability to offer different loan options to people without the inconvenience of traditional banking procedures.

They give loans without collateral and allow them to repay the loans from the comfort of their houses, eliminating the long queues and piles of paperwork associated with bank loans.

How do these loan apps work?

After downloading the loan app from the Google Play Store, they ask individuals to provide details such as personal details, proof of identity, proof of address, and so on, to be sure they are debt-free before lending them a loan amount.

The loan app schedules the repayment of the loan fee within a specific period, and you must pay it on or before that deadline.

Accessing loan can be easy with the right loan app, so in this article, I have compiled a list of the best online loan apps in Nigeria based on recent data.

Best Loan App in Nigeria

Choosing the right loan app can make obtaining a loan from any lending platform easier. Here is a list of Nigeria’s top online loan apps for 2024, based on recent data:

Branch

Branch is one of the best instant loan apps in Nigeria in 2024, with over 10 million downloads. They provide users with instant access to loans ranging from ₦1,000 to ₦500,000 with a repayment period of 61 days to 365 days.

This platform does not request physical documentation, and its interest rate varies from 3% to 23% monthly, making it a good place to get quick access to loans

Branch became one of the best because of its easy-to-use interface, which makes navigation easy while using the app.

FairMoney

FairMoney offers fast loans within minutes, from ₦1,000 to ₦1.5 million, with a repayment period between 90 days and 180 days and a good interest rate between 2% and 20% monthly.

The app boasts over 10 million downloads and offers personal loans up to 1 million Naira and business loans up to 5 million to SMEs.

FairMoney uses credit history to determine eligibility before granting loans to individuals and businesses.

QuickCheck

Quicheck uses advanced technology to provide quick loans starting from ₦1,000 to ₦500,000 to individuals with a repayment term ranging from 91 days to a year.

QuickCheck offers urgent loan fees to customers for their basic needs until their next payday, but limits new customers to a maximum of ₦10,000.

The platform has about 3 million+ downloads, and by using modern technology to simplify the lending process, it has become one of the preferred choices for people looking for easy access to credits.

NewCredit

Newcredit offers quick collateral-free loans from ₦10,000 to ₦300,000 and stands as one of Nigeria’s top payday loan apps, thanks to its advanced technology that checks if borrowers have no debt before approval.

With a repayment period spanning from 91 days to a year and a monthly interest rate of 4%, Newcredit epitomizes the integration of technology and finance in the lending sector.

Kuda

Kuda, popularly called Bank of the Free, is one of the best loan apps in Nigeria in 2024, with over 5 million app downloads. It offers loans of not more than ₦150,000 with an interest rate of 0.3 daily.

This platform offers 90-day overdraft loans, with repayment starting once the individual receives the loan.

Umba

Umba is a digital bank and one of best app that loan you money instantly. they offers fast loans ranging from ₦2,000 to ₦30,000 with an annual interest rate of 10% to 21% without documentation.

This app combines creativity with financial skill to provide loan solutions fashioned to meet the various needs of its customers.

RenMoney

Renmoney is a fintech company that offers both personal and business loans to individuals up to ₦6,000,000 with an interest rate of 2.9% to 34.17% monthly.

This app provides a payment term of about 730 days. Their loan requirements include a bank statement, utility bill, and government-issued ID without any form of collateral.

PalmCredit

PlamCredit is one of the best money loan app that offering quick loans directly to individuals without the need for documentation. The platform gives loans spanning from ₦10,000 to ₦300,000 with an easy repayment period between 91 days and 365 days.

Palm Credit’s interest rate varies from 24% to 56%, with an annual percentage rate of 48%, making it a reliable platform for people to apply for and get loans for their business and personal needs.

Carbon

Carbon is a lending platform formally known as Pay later. The loan app offers a competitive interest rate that spans from 1.75% to 30% monthly, depending on the loan amount.

Their loan amount varies from one month to six months and allows borrowers to repay their loans ahead of the scheduled date, which helps to reduce their overall interest.

Carbon is considered one of the top loan apps in Nigeria due to its instant loan approval process, user-friendly app, and providing loans to everyone irrespective of their financial capabilities.

Its ability to give fast loans with no paperwork, reward for timely payback of loans, and other financial services it provides, such as investment opportunities, also adds to its recognition.

ALAT by Wema

This app is the first Nigeria’s first digital bank introduced by Wema Bank. It provides a wide variety of financial services to users, such as savings and loans, and can be accessible through the mobile app.

ALAT offers quick loans, which makes it a good choice for those looking for instant and convenient loans for their business and financial needs.

The platform offers a competitive interest rate on their loan packages, which ranges from 2% to 4% monthly, depending on the loan amount and the individual’s credit profile.

The repayment plan is flexible and spans from 30 days to 12 months, and it allows borrowers to set up automatic repayment, which makes it easier to repay the loan gradually and avoid late fee penalties.

ALAT stands out as one of the top lending platforms because of the quick loan approval and transparent loan terms coupled with a good user experience.

Okash

Okash is a popular loan platform that offers fats and instant personal loans to individuals in Nigeria through its mobile app.

The platform operated by Opay provides short-term loans to borrowers to take care of urgent and unplanned financial needs.

Their interest rate ranges from 4.5% to 24% monthly depending on the loan amount, credit score history of the borrower, and repayment period.

The repayment period spans from 91 days to 365 days, and borrowers can repay the loan using the mobile app, which has various payment methods.

Okash is regarded as a top loan app in Nigeria due to its fast loan approval and disbursement, simple application process, and ability to give loans without collateral.

The ability to use the app easily and its good customer support make it a trusted choice for people. Additionally, its integration with Opay makes it easier for making payments and accessing other financial services they offer.

Benefits of Using Loan Apps

Some of the advantages of using loan apps include:

It allows you to apply for a loan from anywhere and at anytime without having to visit a physical branch.
They offer an instant loan approval process, and sometimes they make the funds available within a few hours. This can be very vital when there is an emergency financial need to take care of.
Loans apps are easy to use with a user-friendly interface that can guide you through the application processes.
You upload the documents and provide information online, which can help to fasten the loan approval and also reduce stress and paperwork.
Some loan apps give you access to loans even with low credit scores.
They provide transparent information regarding the interest rates, fees, and repayment terms to help you make the right financial decision.
Loan apps have good and flexible repayment plans that allow you to repay without hassle.

Note that it is important to compare different options and also read the loan terms carefully to be sure you are getting the best financial service.

Steps on How to Apply for a Loan

Assess Your Needs

Decide how much you need and the purpose for which you need the loan amount. It could be for personal expenses, business, repairs, etc.

You have to consider how long it will take you to repay the loan and how much you can afford to pay monthly from your salary.

Research Loan Platforms

Before choosing a loan platform to apply for, compare different loan platforms because each of them may have different criteria for loan eligibility and loan terms.

Read the terms and conditions and be sure you understand the terms of repayment, fees, and interest rate before applying for a loan.

Pre-Qualify

After choosing a loan platform, check if you qualify for a loan by providing them with basic information such as income, employment status, and credit score.

This will save you a lot of time on a platform you do not meet with its eligibility criteria.
Prepare the required document.

The next stage in the process is to gather all the documents that the platform requires before they can give you access to a loan. They include personal ID, proof of income, employment details, and credit score information.

Fill out the application form.

On the loan platform, you will be required to complete an application that will be provided. You will need to provide the following: personal information, loan amount you need, preferred repayment terms, and financial information.

Submit Application

After completing the application form with all the required details, go through the information to be sure it is correct, because an error can make them reject your loan application, which you would not want.

Await Approval

In this stage, the platform will review the application you submitted, which does take up to 30 minutes. Some platforms may require that you provide additional information before they can approve the loan.

Accept and Sign Loan Offer

You will receive a loan offer after the loan has been approved, which you will have to sign before they can release the loan amount to you.

Carefully read the offer, which will include the interest rate, fees, and repayment schedule, and if you understand and accept it, you can proceed to signing it electronically.

Receive Funds

Once the offer is signed, the loan amount will be sent to the bank account you specified on the application form so that you can use it for your needs.

The disbursement differs from platforms. Some platforms take a business day before they can release the loan.

Manage your loan

Make payments on time as specified on the term to avoid penalty fees, and also keep track of your balance to be sure there are no additional fees from the loan platform.

Customer Support

Lending platforms usually provide customer support either through phone, email, or chat.

Locate the means of communication for the lending platform if you have any questions or issues that you need clarity on.

Eligibility Criteria for Loan App

The following are the criteria that make you eligible for a loan from a loan app.

You should not be less than 18 years old or more than 65 years old.
A proof of income is required to show you can repay the loan amount.
Most loan apps Check your credit history to determine if you are creditworthy for a loan. A high credit score will increase your chance of getting a loan.
Borrowers must have a steady self-employment income or job to be able to get a loan from a loan platform.
You must be a citizen and live in Nigeria to get a loan from any loan platform.
Some lenders will ask for information on what the loan will be used for to determine if they can approve the loan or not.
Loan platforms require you to have an active bank account to qualify for a loan.
A valid means of identification like a driver’s license, voter’s card, or international passport is required for loan eligibility.

Not that loan platform eligibility requirements may vary, so it’s important to check the criteria of any loan app you are interested in before proceeding with the loan application.

What to look out for when choosing a loan app

In choosing a loan app from the numerous apps available in Nigeria in 2024, there are certain criteria to consider. This will help in picking the best app that meets your standards. Some of these factors are:

Interest Rates

Many individuals mistakenly fail to check a loan app’s interest rate before applying, leading them to get trapped in huge interest and struggle to pay. So before applying for a loan, it is important to compare the interest rates across various loan platforms to ensure you are getting a fair and competitive offer that suits your financial level.

Reputation

Before signing up with a loan app, find out their reputation and credibility. You can read customer reviews on the app and also check their track record, as this can give you a good insight into how reliable they are and their customer service quality.

Regulatory Compliance

The central bank labeled several loan apps as fake for failing to meet its compliance requirements for registration, advising individuals to verify the apps’ licensing by the Central Bank of Nigeria (CBN) to protect their personal details from misuse.

Friendly Interface and Simple Application Process

So many loan apps have interfaces that are difficult for users to navigate through, and some have application processes that are long and stressful to complete, so it is important that you select loan apps with a simple user interface and a smooth application process for easy borrowing and repayment.

Repayment Terms

Repayment terms are one vital piece of information you should not overlook before applying for a loan on any app. Take the time to review and understand the loan app’s terms of repayment. Give close attention to information such as the interest calculator, repayment schedule, penalties for late payment, and any rewards associated with early payment.

What happens if you fail to pay back the loan?

Loan apps take action against individuals who decide not to pay back the loan fee within the stipulated time. Some of the actions are:

An extra fee will be added to the loan you are supposed to pay back as penalty for delayed payment, and you will be given a few days to pay the money.
The loan app shares your bank verification number (BVN), which will be shared with the Credit Bureau of Nigeria, and you will not be able to get further loans from anywhere.
You might be tracked and arrested with the information from your bank details, depending on the loan app and loan fee involved and a legal action will be taken against you.

In Conclusion

The introduction of loan apps in Nigeria has transformed the way individuals get access to finance needed to solve their business or personal needs, which has provided them with unlimited access to financial resources. In choosing the best app in Nigeria to meet urgent needs, users should consider various factors such as interest rate, regulatory compliance, simple application process, and loan app reputation to get the best loan app available.

If find this article on the best loan apps in Nigeria helpful, Let us know in the comment.