Find the best loan app in Nigeria with low interest rates! Compare top 10 apps offering affordable, fast loans for all your financial needs in 2024.
Over the years, So many loan apps have sprung up and dominated the Nigerian financial sector. When you consider current inflation and hard Economic realities currently biting the country, you’ll know exactly why loan apps are thriving.
People are currently experiencing financial difficulties in the face of numerous challenges. Loan apps have provided some financial support to those who might not have funds to sort out their immediate issues. At the same time, these supports are good and provide temporary relief; the interest rates of these loan apps need to be considered.
For you to get the best out of any loan you are taking, you need to pay attention to the interest rate that comes with the loan. Most people, on several occasions, have made the mistake of taking loans without even considering the interest rate; when it’s time to pay back the loan, they’ll be shocked by how much they’re expected to pay back.
In a nutshell, the higher the interest rate of any given loan, the higher the amount you’ll have to pay back, while the lower the interest rate, the lower the amount you will have to pay back.
So obviously, anyone taking a loan is definitely looking for loans with the best interest rates. As a financial consultant specializing in digital lending, I’ve analyzed the most popular loan apps in Nigeria to bring you this guide to the ones with the lowest interest rates.; these loan apps will give you the opportunity to make the most out of your the money you are borrowing, we’re sure you would get the best option from the list of loan apps we’re going to discuss in this blog post.
Table of Contents
Best Loan App in Nigeria with Low Interest Rate: Top 12 Picks to Save Big
Carbon (formerly Pay Later)
The first loan app on our list is Carbon. Carbon has been around for a while now, and they are absolutely dominant in the Nigerian loan Market; the interest rate of Carbon is one of the best in Nigeria; you can get a loan at Carbon with an interest rate of about 1% to 21% monthly.
However, these interest rates will be decided by how much you borrow and how long it will take for you to repay. Carbon loans are almost instantly; you Don’t need to do much to get a loan; all you have to do is download the Carbon loan app on the Google Play Store or Apple Store if you are using IOS; after setting up the app, you can borrow your desired amount.
The minimum of money you get from Carbon is N2000 while you can borrow up to N500,000 from the app. You don’t necessarily need a BVN to start borrowing.
Once you pay back the one you borrowed as at when due, your credit score will increase, and you will be able to borrow a higher amount, we strongly advise that you pay back as at when due for a better credit score.
FairMoney
Fairmoney is another loan app in Nigeria that you should consider if you are looking for really low interest rates; they’re one of the most popular loan apps in Nigeria, with millions of transactions done daily on the Fairmoney app.
You can borrow money quickly on Fairmoney without any need for paperwork; Their interest rate is on the low side when you compare them to other loan apps; they have interest rates that start from 2.5% and go up to 30% monthly. However, the amount you are taking will affect the interest rate.
If you keep to the repayment plan, your loan amount will continue to increase as you build trust. To get started, Download the Fairmoney loan app and make sure you register with your full details, after registration you can proceed to borrow; the minimum amount of money you can borrow is N1000, while you can borrow as much as N500,000 from the Fairmoney loan app
PalmPay
Palmpay Is one of the most astonishing loan Apps in Nigeria; most Nigerians are in love with Palmpay because they have a really strong foundation, and their services go deeper than just loans; they’re well established in Nigeria and have really favorable interest rates that are quite competitive with the very best in the country.
You can borrow as low as N2000 and as much as ₦100,000 from Palmpay. However, you should make sure that you pay them back their money as at when due, these are because they can be mean and might go to a certain length to get back their money; you can use the Palmplay app for lots of other activities like making payments and other online financial services.
Renmoney
Renmoney is one of the biggest loan apps in Nigeria with a huge financial budget, they’ve been incredible over the years and highly rated by most Nigerians. Their interest rates are absolutely low and very considerate; their monthly interest rates start around 2.8% per month.
You can borrow as low as ₦50,000 to as much as ₦6 million from them; their repayment schedule is quite easy and not complicated at all if you are a salary earned or a small business owner who’s looking for a loan option that comes with really good repayment plans, you might have to consider going for Renmoney.
To get started, Download the app and fill in all the necessary information; you can then start borrowing. Payback in time so as to maintain good records with them. That will help you to get more loans in the future while maintaining a very good credit score.
Branch
Branch has been around for a while now and no doubt it’s a favorite loan app to most Nigerians. With Branch, you can get your loans at a very low interest rate. Their interest rate is around 15% to 34% yearly.
If you are worried about collateral, then there’s absolutely no need for that. Branch loans are mostly instantaneous, and no collateral is needed; you can borrow as little as N1000 to as much as N200,000.
The more you pay back when due, the higher your chances of getting an even higher loan amount. To start, go to the Google Play store or Apple Store, that is, if you are using an iPhone, and download the branch loan app.
Make sure you put all the required details then complete your registration and start borrowing money as soon as possible. It would help if you always tried to pay back within the period that is expected of you. Failure to do so may attract extra charges and other embarrassing ordeals you might not want to experience.
Aella Credit
Aella Credit is one of the biggest loan vendors in Nigeria. They have been around for quite a while now and their Loan apps have thousands of downloads on App stores.
Aella has a very good interest rate. It is one of the reasons why lots of businessmen and salary earners choose to borrow money from Aella Credit.
Their interest rate is between 4% to 29% every month. They have very good repayment options that are flexible, so even if you are a salary earner who is conscious of your repayment options, you need not worry.
With Aella Credit, you can borrow a minimum of 2,000 naira and a maximum of 1 million naira. You need to make sure that you pay back your loans when due, so that you can maintain a very good credit score and also build trust with the loan app. It will enable them to increase how much you can borrow when next you want to borrow from them.
Easemoni
Easement has been a very dominant loan app over the past few years; millions of transactions are carried out on the loan app on a daily basis. Easemoni has a very, very good interest rate, which is one of the reasons why they are on this blog post.
The interest rate on the Easemoni loan app starts from 5% to about 30% per month. However, the loan amount you are borrowing has a significant effect on the interest rate that you’re to get.
Borrowing money on Easemoni is not that difficult in fact, it is a very, very simple process; once you get the app from the Play Store, make sure you register with your correct credentials. Then, you can proceed to the loan option and request the amount you wish to borrow.
You can borrow as little as 3,000 naira. You can also borrow as much as 200,000 naira if you pay back your loans when due; you have an increment on how much you can borrow next. You also don’t need your BVN to borrow money.
Okash (Opay)
Opay is currently one of the biggest fintech mobile banking app in Nigeria. They have millions of users all over the country with millions of transactions being carried out daily on the loan app.
Opay is responsible for the powering of the Okash loan app, meaning through Opay, you can borrow on Okash; in order to start, all you have to do is to download the Opay loan app, and once it is installed on your phone, you can navigate to the Okash section on the homepage. You can borrow as much as you are qualified to borrow.
Okash has a very good interest rate; their interest rate is 0.1% to 1% daily, so if you are in need of short-term financial relief, this interest rate will be very good and suitable for you.
For a start you can borrow 3,000 Naira, while in the long run, you can borrow as much as 500,000 Naira from the loan app. The more money you pay when due, the higher your chances of getting bigger loans with Okash.
You Don’t also need your BVN to borrow from them, it’s a very simple step, and I don’t expect you to get issues with borrowing from Okash.
Kuda Bank
Kuda is Quite popular; while most people who use it use it mainly for sending and receiving money as well as making subscriptions and purchases, Kuda is way more than that; you can actually get a low-interest loan from Kuda.
Their daily interest rate is about 0.3%, so if you don’t have any intentions of borrowing for too long, you might have to consider Kuda, as their interest rate is actually better for short-term borrowing.
The lowest amount of money you can borrow from Kuda is N1000, while you can borrow as much as N50,000 from the loan app. Kuda loan, however is not for everyone; their loan is strictly for their account holders who already have a very good transaction history.
So, if you have any intentions of borrowing from Kuda, you should first be their customer; this will put you in a better position to borrow from them at a lower interest rate.
Also, if you eventually start borrowing from them, always ensure that you pay back your loans within the specific duration of your loan term; if you fail to pay as when due, the interest rate will get higher, and you’ll be forced to pay back with more money than you should have paid with.
KwikMoney (Migo)
KwikMoney is another prominent loan app on our list; KwikMoney has a good interest rate, reason why we found them worthy of being on our list; while their monthly interest rates might not be as good as the ones mentioned above, however, they’re still competitive. They can be a good value for those looking for instant loans.
Their interest rate is about 5% to around 15% per month. Borrowing from KwikMoney money is quite simple, there’s absolutely no need for collateral, meaning you can borrow money from them without the pressure that comes with getting collateral.
Another huge advantage of KwikMoney money is the fact that you get approval almost immediately, and you can borrow from N500 to as much as N500,000.
To Start borrowing from KwikMoney, go to Play Store and download the app, fill in the necessary details and register immediately; once you get a loan, always try to pay back within the timeframe that is given to you; it will help to build trust and also enable you to get much more money when borrowing next.
Palmcredit
One of the biggest flexes of borrowing from Palm Credit is the fact that you don’t need collateral when borrowing from them. They’ve been around for quite a while and have a loyal customer base.
Their interest rate is quite low and you can make the most out of it. They give out loans to their customers with an interest rate of about 4% and 24% monthly.
For a start, you can borrow as low as N2000 and as much as N300,000 from Palmcredit. Coupled with the fact that no collateral is required, you can also borrow without having BVN, they always approve their loans almost immediately, meaning you can get it as fast as you need it.
Paying back loans from Palm Credit as soon as possible means you stand a better chance of getting a higher loan amount on your next request.
ALAT by Wema
ALAT by Wema is owned and controlled by Wema Bank, They’re one of the best loan apps in Nigeria with very low interest rates.
The interest rate of ALAT by Wema stands at around 2% monthly which is actually good compared to most of the other loan Apps.
You can borrow as little as N5,000 and as much as N2,000,000 from the app. Unlike most of the other apps that don’t require BVN, If you are borrowing a huge amount from ALAT, you’ll be requested to provide your BVN; however, if you are borrowing a smaller amount, then BVN won’t be required. We encourage you to pay back your loan as soon as possible so as to get bigger loan alerts from ALAT by Wema Bank.
What are the best loan apps in Nigeria with low interest rates?
We mentioned some of the very best loan apps in Nigeria that have really amazing low interest rates; some of them include Carbon, FairMoney, PalmPay, Renmoney, and Branch.
These apps have really good competitive interest rates that fall from 1% to about 34%. However, the interest rate of your loan will largely be based on the amount that you are borrowing as well as how long you intend to borrow.
How much can I borrow from these loan apps?
How much you wish to borrow from these loan apps depends on two things, the first being how much you want to borrow and the second being which of the apps you wish to borrow from.
For example, you can borrow N1,500 to N1 million on Carbon, N50,000 to N6 million on Renmoney, and ₦3,000 to ₦200,000 on Easemoni.
Also, your credit score is another deciding factor; because of this, we advise that you always pay back on time so that you can get a very good credit score and improve your chances of Borrowing a bigger amount of money.
Do I need collateral or a BVN to borrow?
Like we said earlier on, Most apps like Branch and PalmCredit allow you to borrow from their app without providing collateral or a BVN, meaning you can easily take loans from them whether or not you have BVN or collateral.
However, if you have the intention of borrowing from ALAT by Wema Bank, BVN and collateral will not be requested if you are borrowing a smaller amount. Still, if you are borrowing a larger amount, you’ll be required to provide your BVN.
Loan apps are way different from traditional banks; they almost always require you to bring collateral or provide your BVN before getting a loan, which is the reason why most Nigerians tend to borrow from them instead of running to the traditional banks.
How do loan interest rates work?
Interest Rates are very dependent on the loan app you are trying to borrow from and the amount you intend to borrow.
For example, Carbon will charge 1% to 21% monthly, while FairMoney will charge you from 2.5% to 30%. If you decide to always pay back your loans in time, it can lower the interest rate you’ll get in the future.
How can I ensure I qualify for higher loan amounts?
There’s only one secret to qualifying for a higher loan amount, which is to always repay your loan on time so as to build trust with the app and improve your credit score in the process.
Most loan apps will reward you with an increased borrowing limit if you pay back as when due.
Apps like Palmpay and Opay always make sure to increase the borrowing limit of their customers once they pay on time; it’s the same for almost all loan apps.
It would help if you formed the habit of paying back your loans in time; this will definitely increase your chances of getting bigger loans in the future from your favorite loan app.
Conclusion
I’ve discussed the best loan apps in Nigeria with the lowest interest rates; I mentioned the very best apps that resonate really well with the Nigerian Fintech audience.
These loan apps have very low interest rates, meaning you won’t be required to pay hefty sums of money as interest. I know that there are so many loan apps out there that are ready to rip you off your hard-earned money with high interest rates. That’s why I did intense research to bring together the best loan apps in Nigeria with the lowest interest rates. You can choose from the number of apps we mentioned here and start borrowing immediately.