With more fintech being set up, instant loan providers in Nigeria have made access to credit available to a wider audience. Here are the top 10 instant loan providers in Nigeria.
With super-fast approvals, longer loan tenures, and a seamless application process, instant loans have become an attractive mode of borrowing.
Just like personal and other forms of loans, instant loans also have a tenure of up to five years, giving borrowers more time and convenience to repay their debt.
What are instant loans?
An instant loan is a short-term loan that’s typically for a small amount of money and comes with high-interest rates and fees.
Instant loans are available in a few varieties; payday loans also called cash advances, personal loans, quick loans, and some forms of business loans.
How do instant loans work?
Instant loans in Nigeria usually come in small amounts but can rise up to millions, depending on your repayment history.
The amounts are usually around N2,000 or less in some cases. Interest on loans is incredibly high, sometimes shown as a percentage
To be able to access an instant loan, you’ll need some or all of the following;
- A valid government-issued ID
- Proof of income
- A bank account
- Proof of residence, usually in the form of a utility bill
- Proof of employment
Depending on the lender, you will also need to be at least 18 years old.
You can find a lender online or in person at a local bank. In some cases, you will need to authorise the lender to make automatic deductions on your account on the repayment date.
The repayment term for an instant loan is about two weeks, or when you receive your next paycheck.
This also varies by lender, depending on the details of the loan agreement. When it’s time to repay the loan, you’ll pay the loan amount and fees and get your postdated check back.
If you can’t repay the loan on time, some payday lenders offer a rollover to delay repayment for another pay period.
With Instant loans, no collateral is required and interest rates are determined by a number of factors, including your repayment history and the cost of lending.
Top 10 instant loan providers in Nigeria
Despite strict government regulation, more lenders continue to spring up, making the loan sector more competitive.
However, as a borrower, you need to be careful that you don’t fall victim to predatory lenders or fraudsters.
In no particular order, below are the top 10 instant loan providers in Nigeria.
FairMoney offers instant loans of up to ₦1 million to its customer. It also has other added services like a bank account with free transfers, a debit card for spending, and more.
The loan platform says it is leading a new type of credit-led digital bank, providing loans for people to fund their businesses or for personal reasons.
Its loan amounts range between ₦1,500 to ₦1,000,000 with repayment periods from 61 days to 18 months at monthly interest rates that range from 2.5% to 30% (APRs from 30% to 260%)
Another leading instant loan provider in Nigeria is Branch. The mobile app provides access to instant loans with no physical documentation.
It also offers borrowers an option to transfer money, pay bills for free, get instant loans up to ₦500,000, and enjoy investment yields of up to 20%.
Branch offers loans from ₦2,000 to ₦500,000. Loan terms range from 9 – 52 weeks. Interest ranges from 17% – 40% with an equivalent monthly interest of 1.5% – 20% and APR of 18% – 260%, depending on your loan option.
QuickCheck, another loan platform, uses machine learning to predict borrowers’ behaviour and instantly evaluate loan applications.
All the borrower has to do is download the app for free, create a profile, sign up for an account and fill out the necessary details form.
If you qualify, the fund is instantly disbursed into your bank account within minutes.
Aella Credit offers prospective borrowers a quick, and simple application process to access funds.
Through the platform, you can access non-collateralized loans up to N1,000,000 to cushion the shock of some expenses.
With early repayment, you can build your credit score and access higher loan amounts and discounts.
Formerly known as KwikMoney, Migo loan platform provides “credit for everyone.”
The lending platform enables companies to extend credit to consumers and small businesses in their own apps.
Migo also expands economic access by enabling credit for populations ignored by traditional financial institutions
Creditville is a proprietary fintech group with various services; loans, leases, finance, investment, asset management, banking, and others.
With its instant payday loan service, salary earners get access to funds between ₦100,000 to ₦6,000,000 without collateral.
Its other products include SME Loans, Lady Flexy Loans as well as Public Sector Loans
With Eazy Credit, getting access to loans is easy. All the borrower has to do is choose a loan amount and loan duration, provide the required documents for verification and then wait for a loan decision.
Once the loan request is approved you get loan amount credit.
Its range of products for your loan solutions includes personal loans, business loans, payday loans, as well as asset financing.
Asides from access to instant loans, Umba also provides full banking services, allowing customers to spend, pay bills, get loans, and cash back all from their phones.
Its loans are affordable and come with low-interest rates.
OKash is a Micro-lending product that is provided by Blue Ridge Microfinance bank.
With OKash, users can set up their loan account in seconds, select their preferred bank account, link their active bank card for repayment, fill out a set of questions, and get a decision on their loan application in minutes with paperless.
It also offers an opportunity for loan cancellation in a maximum period of 24 hours from the moment of disbursement.
If you have applied for the loan by mistake or no longer need the loan, you can repay the principal within 24 hours, then contact its customer service at your earliest convenience to clear the loan.
Alat by Wema
As with everything else on Alat, a product of Wema Bank, borrowers can apply for a quick and Instant loan without paperwork or visitation to any physical location.
Its response time between acceptance of the offer and loan disbursement is in minutes.
Borrowers can access as much as ₦2,000,000 (Two million naira) without collateral.
Tips for getting the best loan offers
There are no hidden secrets to getting the best instant loan offers in Nigeria.
By taking the steps listed below, as a borrower, you are on your way to getting the best loan offers at the most competitive rates.
Meet the eligibility criteria
Before applying for an instant loan, you need to consider if you meet the eligibility criteria.
Basically, the age limit for applying for a bank loan in Nigeria is 18 years. Also, you need to be currently working and earning a salary and must not have any existing default on loans.
Assess your credit score
If you’re starting the loan application for the first time, commence by getting your credit score.
nairaCompare can help you with this process. You can also request your credit score from your bank.
Check your lending history
Ensure that you have a good lending history because the loan provider will review your lending history before considering giving you a loan.
There is no other alternative. basically, the best way you can ensure that you maintain a good credit history is to pay off your debts timely.
Any delay you make in repaying your debt will negatively impact your credit history.
Compare loan offers
To obtain an instant loan in Nigeria, you may need to compare different platforms giving out the loan and what’s on offer.
Again, nairaCompare has taken the burden off you. By filling in the kind of loan you seek, You can see who is offering what and then be able to make an informed choice.
Borrow within your limits
Before taking a loan, do a brief analysis of how much you earn, how much you need, and how you can spread the payment so it doesn’t become burdensome.
Get your documents in order
Documentation, which can be tough and demanding, is one of the most demanding parts of obtaining a bank loan.
These days, with instant loans in Nigeria, lengthy paperwork has become unnecessary.
However, make sure you know what documentation the particular instant loan requires and put all of them together before you apply.
Know the terms and conditions
All loans have terms and conditions. Hence, you must read and learn about these terms and conditions and stick to them till the end.
Ensure that you make timely payments and know the loan duration.