There are lots of online loan apps in Nigeria. Some are extremely dangerous, while some are very good for individuals and business owners. If you have ever been defamed by loan apps, watch this video to learn how to stop loan apps from hacking your phone immediately.
Why does loan apps matter for Nigeria’s Small and Medium-sized Enterprises (SMEs)
Small business in Nigeria sometimes face hard and serious challenges making use of bank credit. Traditional financial institutions usually demand extensive documents, collaterals and stern paperwork which are obstacles small and micro enterprises strive to prevail.
But online loan apps which are fast, easy and efficient and also have basic requirements are swiftly changing that story. These online apps have become fundamental lifelines from enhancing smooth cash inflow/outflow, providing instant funds and often facilitating growth or critical requirements.
The Top 15 Online loan apps in Nigeria
Below is the list of the broadly used and dependable online loan apps in Nigeria that cater to business owners and small entrepreneurs highlighting their strengths, irregularities and optimal choice.
1. Branch
Branch provides an almost quick and fast loan process which is super fast and efficient. To apply you will have to fill your information via the online app, data-driven protocols will decide your limit, and almost all the loan applicants secure finance in less than 24 hours.
There is no need of guarantors and collateral. They give out about #1000 up to #200000, some recent study shows that they can give up to #500000. Repayment window is open around 4 to 40 weeks (approximately 1 ~ 9 months). Interest is generally about 15 – 34% flat, which usually varies by credit record. For fast booming business like stock replenishment or paying immediate expenses, Branch is the ideal fit.
2. FairMoney
FairMoney is not just an online loan app, it is a licensed and certified digital bank. With this online app you can open a virtual account, get a virtual card, borrow funds, save money, pay bills and many more, all in one digital app.
They give out about #1500 up to #3 million, recent study shows you can secure up to #10 million. Repayment window is flexible which is open around 61 days to 18 months, loan approval can be up to 5 minutes but standard terms will apply.
Interest is monthly based around 2.5 – 30%, Annual Percentage Rate can go high as 260% depending on the duration and structure. It is the best fit for entrepreneurs who needs funds and banking services under the same roof, specifically with extended repayment options.
3. Carbon (formerly called paylater)
Carbon changed it Identity from paylater and advanced into an online financial services app where you can save, borrow, score credit, pay bills and even invest. Carbon gives out about #2500 up to #500000 or #1 million, it usually varies.
Repayment window is generally open around 61 days to 12 months. Interest is about 5 – 15% per month, if you keep up a good behaviour they usually lower the cost and extend the limit. It’s the most suitable pick if you are looking for an All-inclusive tool that develops as your need grows.
4. Palmcredit
Palmcredit is preferred for its speed, transparency and simplicity, palmcredit is the best choice for small and short-term loans and with minimal commotion. They give out about #2000 up to #100000 or #300000. Their repayment window is around 7 to 30 days, it can be up to 26 weeks depending on the plan. Interest is about 4 – 24% monthly while the Annual Percentage Rate ranges from 24 – 56%. It is the perfect app for endorsing small cash flow gaps e.g small expenses, payroll.
5. Okash (by opay)
Okash is integrated into the opay network, so if you already make use of opay app for financial services, you can just retrieve loans effortlessly. You can secure about #3000 up to #500000. Their repayment window is usually around 15 to 180 days, but can be up to 365 days depending on the aspect. Interest is about 0.1- 1% daily Which translates to an Annual Percentage Rate of 36 – 360% or 9 – 29% monthly. If you are an existing opay user, just be sure to watch the Annual Percentage Rate on long-term financing.
6. QuickCheck
QuickCheck make use of Artificial Intelligence to procces loan application which is very flexible and super fast and also growing in popularity. The give out about #1500 up to #500000, recent study shows you can receive up to #1 million.
The repayment window is open around 30 days to 6 months, you can even relay up to a year. Interest is about 2 – 30% which is equivalent to 1 – 21% monthly. It is a very smart and extendable and best choice if you plan to build strong and dependable repayment record so as to unlock better conditions over time.
7. Aella Credit
Aella Credit is ideal for large business loans, specifically with flexible interest rates and moderately high limit. You can secure around #1500 or #2000 up to #1 million or #1.5 million. The repayment window is open around 3 months and up to a year. The interests are generally 2 – 20% monthly, While Annual Percentage Rate is about 22 – 264%. It is the best choice when you need huge finance e.g expanding your operations, securing bulk inventory. But remember to always watch the Annual Percentage Rate ranges.
8. Lidya
Lidya is specialized to support small and medium-sized enterprises SMEs with real business necessities such as expansion of business, buying of equipment, and cash inflow/outflow. They give out around #50000 – #10 million. The repayment window is usually around 1 and up to 24 months. The interest is generally 3 – 10% monthly which is equivalent to an Annual Percentage Rate of up to 21%. If your enterprise is fast growing or you are invested in standardising your business, Lidya is the best option for you.
9. Specta (by Sterling Bank)
Specta is a bank-endorsed alternative with strong organizational support, it is the best for trust, simplicity and transparency. They give about #10000 up to #2 million while sterling community members can receive up to #5 million. It can be assessed instantly and distributed as fast as 5 minutes. The interest is around 25.5 – 28.5% plus 2.5 insurance and additional 1% management fees. If you want transparency and trust you are advised to stick with specta (a bank-standard provider with reliability and clear costs).
10. Lendigo
Lendigo is majorly focused on small and medium-sized enterprises SMEs or small businesses. They offer about #100000 – #1 million, best fit if you don’t have a registered or licensed business yet.
11. Kiakia
It is a peer-to-peer loan framework, very unique and good for small business finance. They give out about #10k – #200k. The interest is about 5 – 24% monthly.
12. Cashx.ng
They are ideal for their fast and transparent framework. They give out about #5k – #100k. They require minimal documentation or records. It is the best and most suitable choice for first-time users on mobile loan apps.
13. EazziCash
EazziCash allows you to secure finance with assets or items. They give out about #100k up to #6 million via collateral. Good for quick high need occasion.
14. KiwikMoney (Migo)
This is an online browser based financial institutions, no app Is needed here. They give out about #500 up to #500k loans. The interest rate is around 5 – 25% monthly.
15. CreditVille
CreditVille is basically for salary earners. They usually give out #100k up to #4 million. Repayment window is generally around 3 – 12 months but it can vary by profile or record.
Risks and Responsible Borrowing
Majority of these online loan apps have easy registration process but comes with risks. There are numerous online reports about proactive collection methods, violations of privacy and so on. As a business owner you should:
- Ensure to always read the full terms and conditions, including the Annual Percentage Rate.
- Have knowledge of how defaults are being handled
- Beware of loan apps which requires access to your mobile phone contacts or any other invasive authorization.
- You should stick to licensed and certified loan apps such as those that operate as small microfinance banks or under clear and transparent rules or regulations.
For Nigerian entrepreneurs or small business owners, online loan apps are very essential tools but must be used moderately and smartly. You can test loans as short-term business incentives, not long-term support. Borrow what you can decisively repay on time to avoid escalating costs.
Think of the loan apps as bridges over cash inflow/outflow, inventory decline. You can use them responsibly, systematically and with transparency on costs and repayment conditions.
As a business owner, you must learn how to use loan apps. So watch this video to have a perfect understanding of how loan apps work and how to use them.
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