This registration, undertaken by the federal competition and consumer protection commission (FCCPC) is expected to differentiate between legitimate loan apps and unlicensed ones, otherwise known as loan sharks.
As of January 2023, the FCCPC gave a report that a total of 78 companies had secured full approval to operate as digital lenders in the country.
Meanwhile, Nigerians keep patronizing these loan sharks despite their stodgy practices, their unethical means of loan recovery, which often involve blackmailing or publicly harassing their borrowers.
While many people are unable to distinguish between the approved and the unauthorized loan apps, the key considerations for credit seeking Nigerians are promptness in loan disbursement, flexibility of repayment and interest rates.
Below are the top 10 most rated loan apps in Nigeria
1. BRANCH
This is a platform that offers quick online loans in Nigeria. This app is one of the most downloaded on Google playstore with over 10 million downloads.
The user’s smartphone data, personalized loan offers and eligibility are determined. The app’s monthly interest rates range from 3% - 23% depending on the risk profile of the customer. You can get access to personal loans from #2,000 to #500,000 with 24hours, depending on your repayment history, with a tenure of 62 days to 1 year.
Analysis of the app’s interest rate shows that if you borrowed #60,000 at an annual number percentage rate of 181% with a tenure of 62 days, the total amount to repay will be #78,000 (60,000 plus 18,400 interest).
2. FAIR MONEY
Fair money which also has over 10 million downloads on the Google play store offers fast loans within 5 minutes with no documentation or collateral required.
Loan amount is dependent on your smartphone data and repayment history.
Loan amount ranges between #1,500 to #1,000,000 with repayment periods from 61 days to 18 months at monthly interest rates that ranges from 2.5% to 30%.
3. PALM CREDIT
On the google playstore, the palm credit app has been downloaded over 5 million times this qualifying as one of the top 10 loan apps in Nigeria.
The lending platform says it can procure a quick loan of up to 300,000 within 5 minutes without any form of collateral.
The annual percentage rate on the platform ranges from 24% to 56%.
Example; if you choose a 6 month loan and borrow 100,000, palm credit charges an interest rate of 4% per month. The interest rates for the 6 months will be 24,000, hence the total repayment will be #124,000.
4. CARBON
Carbon is a digital financial service platform that provides a range of services, including personal loans, business loans, payments, funds transfers, credit scoring, savings and investments.
This carbon loan application takes less than 5 minutes to complete.
Their interest rate ranges from 2% to 30%, and this depends on the loan repayment period and the amount of money you wish to borrow. This app has been downloaded over 1 million times.
5. OKASH
Okash is quite a convenient quick online loan app for Nigerian mobile users, managed by Blue ridge Microfinance bank Limited.
Okash fulfills customers’ financial needs completely online 24/7.
The application process takes just a few steps with minimal documentation and the approved loan amount is sent to the applicant’s bank account. The app offers loans ranging from #3,000 to #500,000 and repayment plan ranges from 91 days to 365 days.
Okash interest rate is calculated on a daily basis, which amounts to an annual percentage rate of between 36.5% to 360%.
This app has been downloaded over 5 million times.
6. AELLA CREDIT
Aella credit provides quick and easy access to loans in 5 minutes, with no paper documentation you can grow your credit score and increase your credit limit by prompt repayment.
With just few requirements, such as BVN and a smartphone. The app which has recorded over 1 million downloads, offers loans ranging from #2,000 to #1,500,000 with a tenor of 61 days to 365 days. Its monthly interest rate ranges from 2% to 20% and Annual percentage rate (APR) from 22% to 264% per annum.
7. QUICK CHECK
Quick check is a quick loan app that uses machine learning to predict borrower’s behavior and instantly evaluate loan applications.
Quick check loan has interest rates starting from as low as 5% monthly on the first loan. Loans range from #1,500 to #500,000 with terms from 91 days to 1 year. Interest ranges from 2% to 30% with an equivalent monthly interest of 1% to 21%.
This app has also been downloaded by over 1 million users.
8. UMBA
Umba, like other top loan apps in Nigeria, has crossed over 1 million downloads. The lender prides itself as one of the leading digital bank in Nigeria. This app allows users to apply, draw down and repay loans directly from their smartphone or personal computer.
The minimum duration is 62 days, with credit amount ranging #2,000 to #30,000. The company’s annual interest rate is 10%.
9. NEWCREDIT
New credit is another instant loan app in Nigeria that has crossed over 1 million downloads. The personal loan app gives Nigerian collateral free loans of up to #300,000.
The app uses an artificial intelligence to analyze prospective customers financial records, including bank transactions, SMS on their phones and their credit worthiness from other lenders. The app’s loan amount range from. #10,000 to #300,000 with repayment from 91 days to 365 days.
The company charges a monthly interest rate of 4%.
10. EASE CASH
Ease cash prides itself as a secure, reliable and online loan app in Nigeria. With over 1 million downloads, the apps gives out instant loans ranging from a #1,000 to #100,000 with a tenor of 91 to 180 days.
Asides from the 14% Annual percentage rate on its loans, ease cash also charges a one time processing fee ( per transaction) at a minimum of 5% and a maximum of 20%.
Meanwhile, the watchword in dealing with the loan apps are;
Do not owe them.! I hope you find this piece of information useful.
