8+ Best Loan Apps in Nigeria

Obtaining quick online loans with low interest rates and no collateral is no longer difficult due to loan apps in Nigeria. With the invention of loan apps, you can now borrow money from the comfort of your own home with just a few clicks.

However, not all loan apps provide low-interest loans. As a result, you will learn about a few low-interest loan apps in Nigeria. This will be useful as a reference when looking for loans.

In this article, I will go over the best loan apps in Nigeria that approve fast and instant loans for individuals and businesses, the pros and cons of using loan apps and how to improve and maintain your credit score.

What Exactly is a Loan App?

Borrowers can apply for instant loans in Nigeria using a loan application, which is a digital app. You can obtain fast loans using a loan app in Nigeria. All you have to do is download the app to your smartphone and use it to apply for a loan. Depending on the loan terms and conditions, lenders will grant your loan within a short period of time.

Best Loan Apps in Nigeria

The following are the best loan apps in Nigeria, with quick and instant responses:

#1. Branch

The branch is one of the best apps in Nigeria that provides quick online loans. With over 10 million downloads, the app is now one of the most popular in the lending category on Google Play. Using the data from the users’ smartphones, the app determines loan eligibility and provides personalized loan offers. The app’s monthly interest rates range from 3% to 23%, depending on the customer’s risk profile.

Personal loans ranging from N2,000 to N500,000 are available within 24 hours, depending on your repayment history, and have terms ranging from 62 days to one year. An examination of the app’s interest rate reveals that if you borrowed N60,000 at an annual percentage rate (APR) of 181% for 62 days, the total amount to repay would be N78,400 (N60,000 plus N18,400 interest).

#2. Quick Check

QuickCheck is one of the quick and fast loan apps in Nigeria that predicts borrower behavior and instantly evaluates loan applications. This app is one of the top loan apps in Nigeria, with over 1 million downloads. On the first loan, QuickCheck loan interest rates start at as low as 5% per month. Loan amounts range from N1,500 to N500,000, with terms ranging from 91 days to one year. Interest rates range from 2% to 30%, with a monthly interest rate of 1 to 21%.

#3. Umba

The Umba loan app is a simple mobile banking and financial application that allows individuals to access low-interest loans ranging from N2,000 to N30,000, pay bills, perform other basic transactions, and repay within 8 weeks.

The Umba app is one of the best instant loan apps, allowing users to apply for, withdraw, and repay loans in Nigeria. It determines loan options based on a risk assessment and can disburse loans quickly without requiring collateral, documentation, or in-person visits.

Umba is available around the clock and does not charge late fees or rollover fees. To apply for a loan from Umba, do the following: download the mobile app from the Google Play Store, register, and submit your loan request.

#4. New Credit

Newcredit, another instant loan app in Nigeria, has over 1 million downloads. The personal loan app provides collateral-free loans of up to N300,000 to Nigerians. The app analyzes prospective customers’ financial records, including bank transaction SMS on their phones and creditworthiness from other lenders, using artificial intelligence (AI).

The app offers loans ranging from N10,000 to N300,000, with repayment terms ranging from 91 to 365 days. The company charges 4% interest per month.

#5. Ease Cash

Ease Cash takes pride in being one of the best, most instant, most dependable, and most reliable online loan apps in Nigeria. The app, which has over 1 million downloads, provides instant loans ranging from N1,000 to N100,000 with terms ranging from 91 to 180 days.

Aside from the 14% APR on its loans, Ease Cash said it charges a one-time processing fee (per transaction) of at least 5% and up to 20%.

#6. P2vest

P2Vest, as a peer-to-peer lending platform, facilitates direct connections in the online lending marketplace between screened borrowers and lenders or investors. This novel approach eliminates the need for middlemen, allowing individuals to lend and borrow money directly from one another. P2Vest offers borrowers competitive interest rates and investors higher returns on capital by eliminating the middleman.

#7. Migo Application

Migo is one of the best instant loan apps in Nigeria, and it allows you to borrow with a USSD code for quick and easy access to loans. The quick loan application provides a diverse range of loan amounts ranging from N500 to N500,000. However, for first-time clients, initial loan offers are typically smaller, gradually increasing as trust and a positive borrowing history are established.

Follow these steps to begin the loan application process via USSD:

On your mobile phone, enter *561#.
Select “Loans” from the drop-down menu.
Choose “Request Loan.”
Wait for the loan to be approved and then follow the instructions.

#8. Kiakia App

Kiakia is a one-of-a-kind peer-to-peer online loan marketplace in Nigeria that connects borrowers and lenders for loan and investment opportunities, allowing individuals or businesses to lend money as an investment while also providing borrowers with access to instant loans.

Users must be Nigerians with a valid ID, bank account, and BVN, as well as a verified source of income, to use the Kiakia loan platform. The platform assesses a person’s financial history and determines their creditworthiness using a credit scoring algorithm.

#9. Zenith Bank Quick Loan Code

The Zenith Bank USSD code *966# is an all-in-one code used by money deposit bank customers for various online and real-time transactions using a smartphone with an internet connection.

The code, also known as the Zenith Bank Quick Loan Code, can be used to open a Zenith bank account, obtain a Zenith Bank quick and instant loan, buy airtime for yourself or friends, and transfer money from Zenith to other bank accounts.

Dial *966# to get a quick loan from the Zenith Bank loan code, then select the “Loan” option and follow the prompts. Enter your personal information, then the loan amount you want to request, and then choose your preferred loan term.

You can also follow the simple steps outlined below:

To begin, dial *966*00# from your mobile phone.
You will see a prompt asking you to enter the last four digits of your ATM card number.
It will display your account name, confirming the accuracy of the information in No. 2 above.
It will ask you to enter your four-digit PIN code.
Confirm your four-digit PIN, and you’re ready to go for easy banking.

The Benefits and Drawbacks of Using Loan Apps in Nigeria

Using loan apps in Nigeria, as in many other countries, can have both benefits and drawbacks. Before deciding to use such apps, it is critical to carefully consider these factors.

Here are some of the benefits and drawbacks of using loan apps in Nigeria:

Pros of Loan Apps

The Benefit of Convenience: Loan apps in Nigeria offer a quick and easy way to get money. The application process is typically simple, and approvals can be obtained quickly.

Easily Accessible: Many loan apps are available to a wide range of people, including those who do not have a traditional banking history or credit score.

Speed: Loan apps in Nigeria frequently provide quick approval and disbursement of funds, which can be critical in an emergency or for immediate financial needs.

Loan Amounts Can Be Adjusted: Depending on the app and your creditworthiness, you can typically borrow small to moderate amounts of money.

There Is No Need for Collateral: Most loan applications in Nigeria do not typically require collateral, making them more accessible to borrowers who do not have valuable assets to pledge.

Various Loan Types Are Available: There are loan apps for a variety of needs, including payday loans, personal loans, business loans, and more.

Cons of Loan App

High-Interest Rates

Many loan apps charge exorbitant interest rates and fees, making borrowing prohibitively expensive. Before borrowing, it is critical to carefully review the terms.

Short Repayment Terms

Some loan applications require repayment within a short period of time, usually a few weeks. If you are unable to repay on time, this can cause financial stress.

Debt Cycle Danger

Borrowing from loan apps on a regular basis can trap borrowers in a debt cycle, as they may need to take out new loans to repay existing ones.

Concerns About Data Privacy and Security

Loan apps frequently request personal and financial information, raising privacy and security concerns. Choose reputable apps with strong security features.

Influence on Credit Score

Defaulting on loans from loan apps can harm your credit score, potentially limiting your future access to traditional credit.

Tips for Using Loan Apps Safely in Nigeria

The following should be taken note of when using loan apps in Nigeria:

Borrow money only from reputable loan apps.

Before you apply, make sure you understand the loan’s terms and conditions.

Borrow only what you require and can repay.

Make sure you have a plan in place for repaying the loan.

Be wary of loan apps that ask for sensitive personal information, such as your bank account password.

How to Improve and Maintain Your Credit Score

You must have good credit before applying for a loan from an online lender. This not only improves your loan offer but also puts you in good standing with the lender.

In Nigeria, establishing and maintaining a good credit score is critical for obtaining favorable loan terms and improving your financial situation.

Here are some steps you can take to improve and maintain your credit score:

Recognize Your Credit Score

Familiarize yourself with the process of credit scoring in Nigeria. Credit scoring systems in other countries may differ.

Examine Your Credit Report

Obtain a credit report from a credit bureau such as the Credit Bureau Association of Nigeria (CBAN) or CreditRegistry. Examine it for errors or inaccuracies and raise any concerns.

Pay Your Bills on Time

Bill payments, including utility bills, credit card bills, and loan repayments, must be made on time to maintain a good credit score. Late payments can have a negative impact on your credit score.

Utilize Loan Apps Responsibly

Borrow only what you need and can comfortably repay if you use loan apps. Avoid borrowing or rolling over loans frequently, as this can lead to a debt cycle.

Maintain a Low Credit Utilization Rate

Keep your credit utilization ratio (the amount you owe in relation to your credit limit) under 30%. High utilization can have a negative impact on your score.

Create a Positive Payment History

Making on-time payments consistently over a long period of time demonstrates your creditworthiness.

Configure Payment Reminders

To avoid missing a payment deadline, consider using payment reminders or auto-debits.

Can a Loan App Blacklist My BVN?

Is it possible for a loan app to freeze my bank account? There is only one correct answer to this question: do not believe anyone who tells you otherwise. This is why I will educate you further in this article. No, a loan app cannot block your BVN; only the CBN has the authority to do so.

Which Loan App Is Prohibited?

Cashme App, Secucash App, Creditbox App, Cashmama App, Crimson Credit App, Galaxy Credit App, Ease Cash App, Xcredit, Imoney, Naira Naija, Imoneyplus-Instant, Nairanaija-Instant, NowNowMoney, Naija Cash, Eagle Cash, Firstnell App, Flypay, and Spark Credit are some of the others on the list.

How Can I Get My Information Off the Loan App?

You can take the following general steps:

Launch the Loan App: Start your device’s loan app.
Examine your account settings: Within the app, look for an “Account” or “Settings” section.
Examine Your Data Deletion Options: Check to see if the app allows you to delete your account or personal data.

Opay Owns Which Loan App?

OPay is a digital banking app that allows users to purchase data, Pay TV subscriptions, and airtime, as well as send and receive payments via QR codes, borrow money with OKash Loan, and fund their betting accounts. Get a free transfer to other banks as well as cashback.

How Do I Pay Off All of My Loans in My Name?

How do I clear my CIBIL history? The first step is to pay off your entire outstanding debt, followed by obtaining clearance from your bank. To have your name removed from the defaulters list, you must obtain a No-Objection Certificate (NOC) from your bank after you have paid your dues.

Conclusion

Borrowing a loan is now very simple and quick, thanks to loan apps in Nigeria. You will, however, require information on the loan app in Nigeria with low-interest rates. You will find everything you need to know about the best, fast and instant loan apps in Nigeria that offer low-interest loans.

Loan applications are simple to use and provide the most convenient loans available in Nigeria. You can easily obtain a loan as an individual or as a business. However, before submitting your application, read through the loan’s terms and conditions to ensure that you understand exactly what it entails.