Top 10 Online Loan Apps in Nigeria Based on Interest Rate

Getting a personal loan used to be a rigorous process, but with the advent of loan apps and competitive interest rates, a lot of the officialdom that comes with the territory has been pruned out. 

In getting affordable loans in Nigeria, it is important to compare the interest rates from different lenders and get the best deal. Making an informed loan decision requires comparing different loan offers before making a commitment.  

Applying for a loan via apps 

The process of getting a loan from apps is simple and almost the same with most of them. The first step would be to download the app from whatever store suits one’s device. The two most popular stores are Google Play and Apple IOS. 

Having downloaded the app, next would be to sign up or log in with your phone number or email, create a profile if you’re a new user or apply for a loan as an old user.  

Once approved, the funds are made available to the borrower within minutes.  

 Loans with the best interest rates 

In no particular order, these are the top 10 online loan apps in Nigeria, based on their interest rates.  

1. Branch 

Leveraging the power of financial access, Branch set out with a mission to deliver world-class financial services to a mobile generation. 

The company says it applies machine learning to create an algorithmic approach to determine creditworthiness via customers’ smartphones.  

Its interest rates are determined by a number of factors, including repayment history with Branch and the cost of lending. Depending on these factors, its rates vary as follows: 

Branch has a monthly interest rate of between 1.5% and 20%, depending on the loan type.  

Its loan terms are usually from 9 to 52 Weeks. Branch has no fees for late repayment, although borrowers are required to cover any bank transaction fees associated with repaying the loan. These may include standard SMS and data charges by the borrower’s mobile carrier that may apply. 

2. FairMoney 

FairMoney is a loan app that prides itself in its easy and stress-free way of lending money. The loan platform provides borrowers with the possibility of getting a loan in Nigeria without collateral.  

With FairMoney Loan, borrowers can get an instant loan of between ₦1,500 to ₦500,000 without needing any paperwork or collateral. 

While it offers a seamless loan application process, FairMoney has an interest rate of about 10%-30% monthly. Its process does not incur any additional fees or hidden costs when processing your loan. 

3. Carbon 

One of the most popular loan platforms in Nigeria, Carbon loan application process typically takes less than five minutes to complete.  

As a digital bank, Carbon seeks to empower individuals with access to credit by providing simple payment solutions, high-yield investment opportunities and easy-to-use tools for personal financial management.  

Depending on the loan repayment period, Carbon’s rates range from 2% to 30%. This also depends on the amount of money you wish to borrow.  

 4. Renmoney 

As is the standard practice, Renmoney’s interest rate varies with the choice of loan repayment. The longer the duration for repayment, the more the interest rate. 

As a financial platform, Renmoney deploys technology into making financial inclusion count. 

With Renmoney, borrowers can apply for a loan of ₦6,000 to ₦6 million without collateral and repay in three to 24 months. Monthly interest rates range from 2.4% – 9.33% and the maximum Annual Percentage Rate (APR) is 35.76%.  

No other fees are charged. 

5. Aella Credit 

Another fast-rising loan platform in Nigeria is Aella Credit. The relatively new entrant into the lending business pegs its interest rates to borrowers’ profiles. 

Aella Credit gives out loan amounts between ₦2000 and a million naira with a maximum tenure of three months. 

Returning borrowers are encouraged to make prompt repayments so they can build their credit score to be available for not just higher loan amounts but more favourable interest rates

Aella’s interest rates vary between 4% to 30% based on the borrower’s profile.  

It also offers lower interest rates to borrowers whose employers or personnel integrate with them.  

6.Okash 

Okash is a Micro-lending product which is provided by Blue Ridge Microfinance bank.  Okash offers a seamless registration process along with ease of accessing funds.   

Okash has one of the most straightforward processes. Its interest charged is 1.2% per day for a fixed term of 15 days. Getting a personal loan used to be a rigorous process, but with the advent of loan apps and competitive interest rates, a lot of the officialdom that comes with the territory has been pruned out. 

In getting affordable loans in Nigeria, it is important to compare the interest rates from different lenders and get the best deal. Making an informed loan decision requires comparing different loan offers before making a commitment.  

7. Palm Credit 

With a pretty low interest rate on offer, Palm Credit says that it is providing a credit revolution for its customers.  

The loan platform meets the urgent financial needs of its thousands of subscribers. It offers customers the chance to pay back their loans in installments either via online or offline channels 

Palm Credit offers very low loan interest rates as low as 8%. The loan amount ranges from ₦2,000 to ₦100,000, and with good repayment performance, the loan amount gets increased accordingly. 

 8. QuickCheck 

QuickCheck is an automated lending service focused on increasing access to credit for individual borrowers in Nigeria. Loan decisions are provided within a few days and if approved, the applicant receives funds within 5 minutes.  

With QuickCheck, loans are delivered via a bank account transfer, with lending decisions provided almost instantly. The usual amount for new borrowers is ₦10,000. This platform neither requires a collateral nor a guarantor. 

The interest rate for QuickCheck’s loans is 1% daily, fixed for the term of the loan. QuickCheck, however says that may, in its sole discretion, increase or decrease the prevailing interest rate for any reasons with or without prior recourse to the borrower. 

 9. ALAT Instant Loans 

As a digital banking platform, Alat offers the best of both worlds. It offers the services of a traditional bank while capturing the digital audience.  

 ALAT issues instant loans to borrowers without paperwork. They are also not required to visit any physical location, and response time between acceptance of offer and loan disbursement is in minutes.  

 With Alat, a product of Wema Bank, borrowers can access as much as ₦2,000,000 (Two million naira) without collateral. 

It also offers salary-based loans, whether the customer’s salary is domiciled in Wema Bank or not.  

One of its prominent products is its Device Loan, which is available for salary-earning and self-employed individuals. It offers a maximum tenor of six months with an interest rate of 2% per month. 

10.GTB QuickCredit 

Like Wema’s Alat, GTB QuickCredit is an offshoot of the traditional banking platform, GTCO.  QuickCredit is a time loan accessible to salary and non-salary account holders. 

It offers a minimum loan amount of ₦5,000 and a maximum amount of ₦5 million for salary earners and ₦500,000 for non-salary earners. 

 Also, the maximum tenor for QuickCredit is between 6 to 12 months. With GTB QuickCredit, borrowers are offered an interest rate of 1.5% per month. 

One interesting thing about this platform is that loans can be accessed either via USSD, Internet Banking or its Mobile Banking App. 

 Other factors to note about interest rates 

Lenders calculate personal loan interest rates based on a number of variables. Things like the borrower’s creditworthiness, income, loan amount and repayment term determine how the interest rate is set.