Best Loan Apps in Nigeria Now – It is an undisputed fact that money is not always available at hand when you need it. Sometimes, it goes out of stock when we need it the most. As humans, we often have reasons to spend, but we usually experience a lack of money.
To this effect, loans have been a way out of financial bottlenecks. Taking loans has been a practice for ages, dating back to 3000 BC. There are different reasons why we take loans. Usually, people take loans for either personal uses or their businesses.
Preferable to family and friends, the most common places for obtaining loans are banks. They include microfinance banks and commercial banks. However, to obtain a loan from these banks, specific requirements must be met.
Traditionally, when obtaining loans, individuals have to go to the bank and request a loan of their choice. For the loan to be granted, they have to present a surety and collateral worth their loans. Also, they must present certain documents before they can be eligible for the loan.
However, with the advent of mobile applications, people can stay in the comfort of their homes and offices to request loans from banks. Using this loaning method, the loanees do not need to present many documents, sureties, or collateral before they are granted loans. All that is required are correct personal information and valid means of identification.
Table of Contents
- 1 Why Do You Need a Loan
- 2 For Financing And Increasing Your Business
- 3 Requirements For a Loan In Nigeria
- 4 Best Loan Apps In Nigeria
- 5 The Carbon Loan App
- 6 The Palm Credit Loan App
- 7 The Fair Money Loan App
- 8 Conclusion
Why Do You Need a Loan
There are different reasons why we take loans. Shall we take a look at possible reasons that can warrant taking a loan?
To Pay-off Numerous Debts Singly
Sometimes, while handling and paying off EMIs consisting of different little loans, there is likely to make excessive payments. Also, keeping records of payments and subsequent debts can be difficult. So, in a case as this, you can take on personal loans to ease off these burdens.
With this method, you can unify your debts and pay them off with a single interest rate, using a particular EMI monthly. More so, it puts your monthly income and expenditures in perfect order, making it easy for you to monitor and stabilize your finances and prepare for other budgets.
To Cater For Emergencies
Emergencies happen regularly. Although there are insured measures that handle emergencies, sometimes, these measures might not meet up as required. In such conditions, loans are a very option to solve that urgent need.
A study in the United States showed that only about 48% of Americans could cater for an emergency worth $1000 using their savings alone. Emergencies like medical expenses, electronic purchases, accommodation, business startup or growth, or even assisting a loved one are the most common—reasons for obtaining loans.
Credit Score Improvement
Usually, loans are used in improving credit scores. A credit score is a criterion for the eligibility of a person to obtain loans. It is measured by how early an individual has paid back loans and credit card debts in time past.
So taking a loan of a reasonable amount and paying it back helps to raise your credit score because your reports are reflected in your credit history and thus making you worthy of bigger loans.
For Financing And Increasing Your Business
Businesses are created to expand continuously, render more services, and make more gains. The income made from a business may not support its expansion. In this case, a loan can be considered.
Apart from business expansion, due to some reasons, a business can fail and would need financial support to return to its feet. Due to a lack of funds, the business owner can take a loan to start the business again.
For Educational Purposes
In an attempt to further one’s education, one can gain an admission that is above budget. Personal loans can be taken to this effect and be paid comfortably over time due to the loaning reason. They usually have no conditions before they can be obtained, and their interest rates are inexpensive.
Other educational loans taken can have restrictions and require specific conditions that must be met. For instance, some loans are granted only to individuals who gain admission into certain kinds of tertiary institutions. Also, they can take years to pay, and they often have conditions of payments that must be obeyed.
Moving And Changing Of Location
Changing locations these days can be costly, with the increasing cost of transportation and labour. And you might need to relocate so urgently that there is not enough time to save up for the expenses.
In this condition, you might want to consider taking a loan to meet up with the expenses of moving your properties, transporting, rearranging, and even buying new properties. At least, there is no restriction to how you make your expenditures to make your decisions adequately.
Requirements For a Loan In Nigeria
Traditionally, when obtaining a loan from a bank, certain conditions have to be checked and met for a borrower to obtain a loan. Let us check them out.
Select Your Lender
It is necessary first to select the financial institution from which you desire to obtain a loan. Different lenders have different loaning conditions and interests. So in having a variety of choices, the most favourable lender can be selected.
Check Your Loan Eligibility
In taking a loan, it is advised to confirm your eligibility for the loan. The most checked criterion is having valid documents and means of identification. No loaner would like to give loans to a ghost. Also, different loan amounts have their requirements. So you must also check if you meet the requirements for the amount you want to borrow.
Decide How Much You Want To Loan
After considering your eligibility, then you decide on how much you want to borrow. Knowing how much you want to borrow will help you determine your possible source of repaying and the time it will take you to do so.
Check Your Credit Score
Credit scores determine how much an individual can request a loan. So low credit scores might not be favourable for a loanee that wants a loan more extensive than his score grade. For loanees that have a low credit score, they can either boost it to qualify for higher loans or take up loans that are within their score range. New loanees do not receive a large amount of money, and people who have not loaned much cannot have increased loan amounts.
Apply For The Loan
After going through these conditions, then you can apply for a loan according to your qualification. Also, you will be required to select an account for repayment and a time frame to cover the debt. Once these steps are done, then the loan will be granted.
However, when taking loans using a mobile application, some of these requirements, like collaterals, are unnecessary. That is what makes loan requests on these online platforms easy.
Best Loan Apps In Nigeria
It is a leading company that was established in 2012. Being a subsidiary of One Finance and Investment Limited, it was formerly called PayLater and was only giving loans to salary earners. Later in 2015, it extended its loaning service to non-salary earners when the BVN policy began. In 2016, the company went fully digital by using network technology and stopped the application of loans by paper.
The essence of going digital was to eliminate the complexities of handling customers’ complaints and needs. So with the advent of the mobile application, the company diversified into providing services like payment of bills, managing finances, and investments for its customers. And with this, in no time, the mobile application had more than one million downloads. It has over 70,000 reviews and a 4.4-star rating.
To gain access to the company’s services, the first step is downloading the app from Google PlayStore or Apple’s AppStore. After downloading, you create your account in a few minutes, and you are all set.
In the app’s interface, you will find four distinctive valuable sections. They include:
- The Loan Section: This section is for making applications for loans.
- The Payment Section: In this section, you can make different payment transactions like sending money, making internet subscriptions, purchasing airtime, paying electricity subscriptions, etc.
- Financial Tools Section: In this section, you can open a deposit account and access different investment opportunities. You can also get a credit report for free.
- Transaction Overview: In this section, you get to monitor and view your transaction records on the application.
Now placing a loan can be taken from the comfort of anywhere using the following steps:
- Create your account and provide every necessary detail like your name, email, address, phone number.
- Upload a clear picture of yourself. This step is essential for the verification of your account.
- Go to the loan section and apply for a loan of your choice. Then you wait for a little while.
- Once the loan is approved, you will be required to accept the offer and fill in your card details.
The repayment period lasts between 30 days to 13 months.
Why Should You Use The Carbon Loan App
- They have a 24/7 service that is readily available for seamless transactions.
- You need a smartphone, an active internet connection, and an acceptable means of identification.
- Anyone is eligible to take a loan.
- Their services are crystal clear, and there are no hidden fees.
- They have reward schemes for users who bring referrals or pay their debts early.
- They have an interest rate of 2% to 30% annually, depending on the repayment period and the loan amount.
The Palm Credit app is a loaning platform for individuals to get loans swiftly without the need for collateral or much documentation. It is a creation of Transsnet group of companies and has affiliations with the phone brand Tecno.
On the mobile application, loanees can take loans from 15,000 Naira up to 100,000 Naira. However, their loans are only eligible for users from 18 years old and above.
Through the Palm credit loan application, it is easy to obtain loans ranging from 15,000 Naira to 100,000 Naira. Their loans, however, have age restrictions which are of people aged 18 and above. The platform has a loan interest rate of 14%-24%.
Currently, the Palm Credit app gives two kinds of loans, namely Palm Credit Airtime loan and Palm Credit Installment Loan.
The Palm Credit Airtime Loan grants customers access to loans of up to 10,000 Naira worth of airtime with a refund period of two weeks. At the same time, the Palm Credit Installment Loan allows loanees to get loans between 2000 Naira and 100,000 Naira.
In taking a loan on this platform, specific requirements must be met to obtain eligibility. The requirements to taking a loan on Palm Credit Include:
- Your correct Bank Verification Number (BVN).
- Your personal information.
- Your Phone Number.
- Your valid bank information.
- Valid details about your occupation.
Steps To Taking A Loan On Palm Credit
- Download the application and launch it.
- Successfully register using your details like full name, date of birth, and bank details like BVN.
- Verify your phone number.
- Go to the loan section and select a loan amount.
-After applying, your loan will be processed. If eventually approved, you will get an approval message from the app. Then the amount requested will be credited to the bank account you provided.
Repayment is straightforward. You can make your loan refunds in two ways. You can repay by paying through the app by clicking on “Menu” » “My Loan” » “Outstanding,” » “Pay Now,” » Input Palm Credit Pin.
The alternative method is by paying into the Palm Credit bank account, using an access bank outlet.
The Fair Money Loan App
FairMoney is a loaning company that gives loans at reasonable rates to its customers. The kinds of loans it grants are instalment loans, single payment loans, and payroll loans. For new customers, they can grant loans from 10,000 Naira up to 40,000 Naira without requesting guarantors or any collateral.
On FairMoney, the interest rates charged on loans depend on certain factors. They include the refund history of the loanee and the lending cost. When an applicant makes a loan, the loan approval is decided in a brief period of 15 seconds. And as soon as the loan is approved, the loanee receives the money in less than 5 minutes. Loan decisions are provided within 15 seconds, and if approved, the applicant receives funds within 5 minutes.
The requirements to taking a loan include:
- A smartphone with a working Internet.
- Creating an account and providing every valid information, including BVN and bank details.
- Applying for a loan.
Services offered by Payday include providing monthly overdrafts to companies, private establishments, government organizations, etc.
Their interest rates range from 2.5% to 30%, depending on the loan amount and the repayment period.
With loans, life should be a lot easier. Just make sure to meet the eligibility requirements and make your application.