A few years back, the Nigerian finance sector was liberalised paving the way for more players to step in to cover grounds the traditional banking platforms were unable to cover. This gave room for digital money services to thrive and with it came the now popular loan apps.
Other than anything, the drive to ensure financial inclusion and capture the unbanked in the Nigerian finance sector is aimed at stimulating economic growth. However, as with almost everything, the key players who took advantage of the Banks and Other Financial Institutions Act (BOFIA) 2020 which also guides money lending came with different strengths.
How Do Loan Apps Work?
By their nature, loan apps are platforms on which borrowers can get quick access to cash in time of need. With loan apps, the procedure for securing a loan is usually seamless and the funds can be accessed within minutes. With the different available loan apps in Nigeria, the interest rates vary and can be anything between 15% to 50%.
Also, unlike banks, borrowers are not required to visit their office, provide collateral and do much other paperwork.
Rating Loan Apps On Google Play
As users commit to downloading and installing apps from Google Play on their mobile devices, the app store also offers them an avenue to review and rate the apps. Such ratings usually take into cognisance factors like interface and ease of use.
NairaCompare has, in no particular order, curated a list of some of the loan apps with the highest ranking on the Google Playstore according to users.
Branch: Loan & Digital Banking (4.5-star rating)
One of the most popular loan apps in Nigeria, Branch: Loan & Digital Banking describes itself as the power of financial access. Its mission is to deliver world-class financial services to Nigeria’s ever-growing mobile generation.
This is done by applying machine learning thereby creating an algorithmic approach to determine credit worthiness via customers’ smartphones. With a list of financial products available to its users, Branch is said to play big on security, data privacy, and ethical collections earning it a 4.5 star by users.
Palmcredit (4.3-star rating)
Another very popular loan app, Palmcredit describes itself as different from the other loan apps. Its profile reads that it offers flexible loan products within minutes using a three-step approach.
It also plays big on data safety, believing that data privacy and security practices may vary based on your use, region, and age.
Palmcredit presently has a user rating of 4.3 stars on the Google Playstore.
Aella App (3.8-star rating)
With the goal of improving financial inclusion for West Africa’s low-income segment, this Nigerian fintech start-up, Aella describes its core values using the acronym, FOCUS.
By this, it says that it is futuristic, by staying ahead in the fintech ecosystem, Optimistic, Credible, Unorthodox, and Service-oriented. It further states that it is committed to being dependable, result-oriented, and satisfactory.
All of these factors were instrumental as the company recently raised a $10m debt financing round, from HQ Financial Group (HQF), a Singapore-based private company.
While these all appear impressive, it doesn’t do much for Aella as it garnered a 3.8-star rating.
Carbon: Savings, Loans, Bills (4.4-star rating)
Carbon, formerly known as Pay later, is a loan app that provides full-fledged banking services and claims to provide access to financial services for all Africans. Its mission is to provide access to credit and quality financial services while empowering all people with the financial access they need to pursue a life of dignity and prosperity.
Carbon also provides simple payment solutions, high-yield investment opportunities, and easy-to-use tools for personal financial management. The app presently has a 4.4-star rating.
QuickCheck (4.5-star rating)
As the name implies, QuickCheck provides prompt access to cash anytime, anywhere. It also serves to eliminate long queues, bulky documents, and long wait times for those seeking to borrow some cash.
Like most of its peers in the fintech circle, it claims to use machine learning to predict borrowers’ behaviour and instantly evaluate loan applications. It also offers digital financial services to help borrowers get closer to their personal and business goals.
Despite not being quite as popular as the others, users of the app trust it enough to rate it a 4.5-star rating.
OKash Loan (4.3-star rating)
OKash is a Micro-lending product that is provided by Blue Ridge Microfinance bank. OKash offers users an opportunity to 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.
One factor Okash has going for it is that it plays big in digital marketing and advertising. It also has a thriving customer relations network, earning it a 4.3-star rating by its users
FairMoney (4.4-star rating)
Like Carbon, FairMoney claims to offer banking services as it seeks to build a leading mobile bank for emerging markets. It also claims to have international exposure with offices on three continents. Riding on an “impact-driven” mission, the loan app seeks to bring financial inclusion to underbanked people in emerging markets.
This led it to build a credit-led digital bank that offers collateral-free loans to make lives easier.
FairMoney presently ranks among the highest with a 4.4-star rating on the Google Play Store.
ALAT By WEMA (3.6-star rating)
Unlike the others, ALAT rest on the weight of its parent company, Wema Bank, a traditional banking platform. Its mission, among other things, is to build Nigeria’s most dominant digital banking platform.
Described as Nigeria’s first fully digital bank ALAT offers tailor-made solutions to users’ banking needs while providing support for their lifestyle choices, business demands, and recreational ventures.
Unfortunately, despite its background, the loan app could only garner a 3.6-star rating from its users.
P2Vest (3.3-star rating)
A peer-to-peer loan app, P2Vest brings innovation into the digital lending space in Nigeria. As the name implies, P2Vest brings borrowers and lenders together, transforming the way people access to credit and lend money.
It claims to have built a marketplace where costs are low and opportunities are high, making use of technology to help people take control of their debt, grow their businesses, and invest for the future.
It also seeks to reinvent lending by ensuring competitive returns for lenders with our technology-driven model that delivers more value and a better experience. This is done by matching borrowers with lenders based on risk profiles and credit scoring.
Perhaps because its model is still relatively new, the ending platform could only manage a 3.3-star rating.
What Else Do You Need To Know?
The decision on what financial platform to patronise does not usually come easy and so potential users are advised to have up-to-date information when scouting.
NairaCompare is constantly working to ensure that users have multiple quote options to compare and eventually choose from based on their personal finance (loans), savings, and needs at every point in time.