Interest rates of some loan applications in Nigeria
Online loan apps are gaining traction with features like personalized repayment plans, minimal documentation, low interest rates, and quick disbursement. Previously, one of the biggest challenges people faced was accessing quick loans.
You had to go to a bank, get relevant information, and provide collateral before getting a loan. This process was not only tedious but also beyond the reach of many people.
With the emergence of online loan applications, anyone can apply for a loan from the comfort of their own home. You can also easily follow the progress of your application.
Different loan applications in Nigeria today offer a fast, easy and fully electronic way to access funds. Most of these loans are short term and the interest rates vary from application to application.
Carbon: Carbon is a digital financial services platform that provides a range of financial services, including personal loans, business loans, payments, money transfers, credit rating, savings and investments. It is currently available in Nigeria and Kenya.
The carbon loan application process typically takes less than 5 minutes. Their rates range from 2% to 30%, and it depends on the loan repayment term and the amount you want to borrow.
Plugged: Branch is another platform that offers fast online loans in Nigeria. They determine loan eligibility and personalized loan offers using data from users’ smartphones. Their interest rates vary from 15% to 34%. You can access loans from 1,000 to 200,000 in 24 hours, depending on your repayment history, with a repayment period of 4 to 40 weeks.
Fair money: FairMoney offers fast loans in 5 minutes with no documentation or collateral required. Loan amounts vary depending on your smartphone data and repayment history. Loan amounts vary between 1,500 and 500,000 with repayment periods of 61 days to 180 days at monthly interest rates ranging from 10% to 30%.
Credit Aella: Aella credit is a one stop shop for all your financial services. They offer short term personal loans ranging from ₦ 2,000 to 1,000,000 with repayment periods of 1 to 3 months. Their interest rates vary from 6% to 20%. You have access to higher amounts and better rates if you work with an Aella Credit partner company.
Palm credit: PalmCredit offers quick loans of small amounts for new applicants. You have access to higher loan amounts when you pay off your loans on time. Palmcredit’s monthly interest rate ranges from 4% to 4.7% while the loan interest rate ranges from 14% to 24%. Their loan limits range from 2,000 to 100,000 with a repayment period of between 91 days and 180 days.
Silver ren: Renmoney offers personal and micro business loans ranging from 50,000 to 6 million yen without collateral. They offer large loan amounts and flexible repayment terms to low-risk borrowers with strong financial profiles. Monthly interest rates range from 2.76% to 9.33% repayable in 3 to 24 months.
Migo: Migo is an integrated lending platform that enables businesses to extend credit to consumers and small businesses in their own apps. You can access Migo’s loan services on their website. If you don’t have a smartphone, you can use the Migo code USSD. Their loans range from 500,000 to 500,000 with repayment periods of 14 to 30 days. Their interest varies from 5% to 25%.
Xcredit: XCredit makes it easy for Nigerians to access a loan anytime, anywhere. The amount of XCredit loan ranges from 5,000 to 500,000. The shortest loan term is 91 days and the longest 180 days. They offer an interest rate of 12% of the borrowed amount.
Lidia: Lidya offers financing based on the cash in your bank account and without collateral. The loan amount at Lidya varies from 150,000 and above with an interest rate of 3.5% per month.
Kiakia loan: Kiakia is a financial marketplace that provides short-term business and personal loans. They offer peer-to-peer loan option so that you can either offer someone a loan or apply for a loan on kiakia. You can borrow as little as 10,000 and up to 200,000. Kiakia’s interest rate is generally between 5.6% and 24%.
What happens when you don’t pay off your loan?
Many loan application operators are known to recover their money through attractive and unconventional means, including calling the phone contacts of a defaulter to request the contact’s intervention. These contacts can be friends, family members, co-workers or even employers of a borrower.
Permission to access contacts on a borrower’s phone is usually requested by the app at the enrollment stage. Hence, what people who use loan apps gain in convenience and speed they lose due to privacy violation and sometimes higher interest rates than they get with traditional banks. .