A lot of people are getting loans online in Nigeria through loan apps like Paylater, Kwikmoney (now Migo), Renmoney,  Aella Credit etc. These loans are different from the loans given by conventional banks. These loans are also quick some people even refer to it as “instant loans”, they are given without collateral.

However, there are requirements for getting online loans through loan apps in Nigeria.

Requirements for Getting Online Loans in Nigeria

• Bank Verification Number (BVN): This is a unique identification number given to every bank account owner.
• Passport Photograph: You need to provide your recent passport photograph.
• Address: You need to supply your resident address.
• Bank Statement: A bank statement which contains the number of transaction to and from the bank and the current balance.
• Valid ID Card: This could be your National ID card or Voters Card just for identification.
• Employment letter: This is optional as not all the loan apps ask for this.
• Mobile App: You need to download the mobile app to access the loan. Some lending platforms use USSD code like in Kwikmoney.

The above are all requirements you should have in mind when trying to get a loan online even though some loan apps require far less than what is listed above.

Paylater (now Migo) has the least requirement when getting a loan.

So, to get a loan online in Nigeria you have to first download the loan app or go to the company’s website and sign up. After sign up you apply for a loan. During the application, you will have to supply the requirement of the particular company you have chosen. It’s that simple!

Now, another concern is what the interest rates are.

How much can you get from Loan Apps?

Here, the amount differs. Some loan apps like Paylater can give a loan of up to #500,000. The lesser the money you want to get the more your chance of getting a loan. Also, your bank statement also determines how much you are allowed to loan.

Loan Apps Interest Rate in Nigeria

Interest you pay on the loan differs from app to app and just you know they are a bit higher than conventional banks. But hey, these loans come without collateral which means more risk for the lender.

Zedvance has the best interest rate of 4 to 4.5% monthly. There are loan apps that have an interest rate of up to 15% depending on the risk involved.

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How do you Pay Back Your Loan?

Most loan apps perform direct debit on your bank account at the end of the month. Others can be paid through cheque, Quickteller, POS, Online transfer and Cash.