10 Best Loan Apps in Nigeria with Low Interest Rate

The top 10 Best Loan Apps in Nigeria with low interest rates are Branch, Kwikmoney, Carbon, Quickcheck, Aella Credit, PalmCredit, Fairmoney, Okash Renmoney, Kiakia.

One of the bedrocks of a civilized society is money. In Nigeria, although the majority of attention is directed towards making money or saving it, many businesses have quickly evolved to become beneficiaries of loans. Loan apps have grown in prominence in the country because of how tough it is to get a bank loan and many Nigerians have had to turn to these apps to quickly access credit.

However, high interest rates and short turnover periods are among the major challenges you may face while going for these loans. So, if you are among those looking for loan apps with the lowest interest rates, quickest disbursement time, and excellent customer service, we are here to guide you with these 10 best loan apps in Nigeria.

1. Branch Loan App

Active Since: 2015
Affiliated to: Branch International Limited
Interest Rate: 4.2%
Ratings: 4.8/5

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Branch, active since 2015, shines as a beacon of affordability with an interest rate of just 4.2%. This low-cost lending option ensures users can access funds without the burden of high interest. Branch has become the most incredible app for borrowing money in Nigeria by 2023, thanks to its considerable growth in popularity. The lending app sets itself apart by providing various financial services like investments, loans, bill payments, and money transfers.

One of Branch’s unique features is its loan program, which users can access without providing any other security except BVN, and it offers loan amounts ranging from 1,000 NGN to 500,000 NGN, giving them the freedom to borrow money as needed. The Branch loan app also offers a 62-day to 12-month repayment time, which provides borrowers with options for managing their loan obligations based on their financial condition.

Branch’s affiliations with various financial institutions contribute to its reliability, earning it a user rating of 4.8/5. The loan app is also being approved by Nigeria’s highest federal competition regulator and consumer protection agency, the FCCPC, which indicates an operation compliant with regulatory standards that helps instill confidence in users and assures them that their rights as consumers are protected.

2. Kwikmoney Loan App

Active Since: 2013
Affiliated to: Credit Bureau Association of Nigeria
Interest Rate: 4.3%
Ratings: 4.7/5

Kwikmoney, or just KwikCash, is another low-interest loan app that has been empowering borrowers since 2013. The app, which offers an interest rate of 4.3%, is known to be affiliated with the Credit Bureau Association of Nigeria. This has ensured a seamless lending experience for its Nigerian customers, with loan offers processed in 60 seconds.

However, with Kwik Money, you must remember to repay your loans in 14 to 30 days, depending on the loan type. Failure to repay your loans when due attracts an automatic extension called a “rollover,” which will double the amount of interest with an additional 5% fee. If you do not pay your loan after the rollover, your loan will default, and a 5% default fee will be added to it.

3. Carbon Loan App (formerly Paylater)

Active Since: 2016
Affiliated to: Nigerian InterBank Settlement System (NIBSS)
Interest Rate: 4.5%
Ratings: 4.⅗

Carbon used to be known as Paylater. This loan app is one of the pioneer loan apps in Nigeria and has been functioning since 2016. The app boasts a low-interest rate of 4.5%, making it one of the most affordable options for borrowers. This loan financing app helps customers buy needed commodities to pay back in installments at a later date. Their repayment period is 3 – 6 months, but an initial deposit of 25% of the product price is required before processing the purchase.

Carbon’s affiliation with the Nigerian InterBank Settlement System (NIBSS) adds an extra layer of credibility, especially for Nigerians who might not yet be sold on getting loans from a digital app and not a physical building. With a user rating of 4.3/5, this app is a reliable choice for those needing financial assistance.

4. Quickcheck Loan App

Active Since: 2016
Affiliated to: Credit Risk Management Association of Nigeria (CRIMAN)
Interest Rate: 4.5%
Ratings: 4.6/5

Quickcheck has been a reliable source of financial support since 2016. With an interest rate of 4.5%, the loan app is renowned for its swift loan disbursement process, as it often disburses loans within minutes, requiring no collateral aside from a BVN. Additionally, the platform offers flexible repayment periods, ranging from 61 days to 12 months, so borrowers can choose a repayment plan that best suits their financial capabilities and needs.
As one of the best loan apps in Nigeria, QuickCheck boasts an excellent user interface that enables borrowers to easily navigate and access the necessary features, enhancing the overall borrowing experience and contributing to a positive customer journey. Depending on the borrower’s credit score, the app offers loans with monthly interest rates of 2.5% to 21.7%. While its lower interest rates are favourable, borrowers with lower credit scores may experience higher rates, a common practice in the lending industry.

Check’s affiliation with the Credit Risk Management Association of Nigeria (CRIMAN) adds to its credibility. However, its lack of full or even conditional approval from Nigeria’s highest federal competition regulator and consumer protection agency, the FCCPC, is a major concern to Nigerians.

5. Aella Credit Loan App

Active Since: 2015
Affiliated to: Lagos State Ministry of Wealth Creation & Employment
Interest Rate: 4.7%
Ratings: 4.⅘

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Aella Credit has been a trusted financial partner since 2015, providing a competitive interest rate of 4.7%. Its unique affiliation with the Lagos State Ministry of Wealth Creation & Employment showcases its commitment to contributing to financial stability in Nigeria. Basically, this loan app offers loans of up to 1 million, with an interest rate of about 6% to 20%. Also, they have a loan tenure of 1 – 3 months with zero late/rollover fees.

This means a loan of ₦100,000 on the Aella App has a fee of ₦15,000 after 180 days. There are no late penalties and no hidden charges. You only have to download the app from Playstore for Android smartphones or the App Store for iOS phones. With a user rating of 4.4/5, Aella Credit is a preferred choice for many borrowers. Thus, it is listed among Nigeria’s top ten best loan apps.

6. PalmCredit Loan App

Active Since: 2018
Affiliated to: Transnet Financial Nigeria Limited
Interest Rate: 4.8%
Ratings: 4.6/5

PalmCredit, active since 2018, is a source of quick and affordable financial solutions. With over 5 million downloads on the Google Play Store, the lending platform boasts of providing quick loans of up to N100,000 in less than 3 minutes without any form of collateral and with an Annual Percentage Rate (APR) varying from 24% to 56%, translating to an interest rate of 4% per month.

PalmCredits affiliation with Transnet Financials adds to its credibility. Users have rated it with an impressive 4.6/5, highlighting its efficiency and affordability. However, complaints from users are mostly linked to the app’s technical issues. The most prevalent issue has been with repayment of loans and users being tagged as ‘delinquent’ after their cards have been declined.

7. FairMoney Loan App

Active Since: 2017
Affiliated to: MyCredit Limited
Interest Rate: 5%
Ratings: 4.5/5

FairMoney has been a significant player in the Nigerian lending market since 2017. This loan app offers a competitive 5% interest rate, making it an attractive option for borrowers seeking financial support without breaking the bank. FairMoney’s user-friendly interface and prompt processing have contributed to its impressive 4.5/5 rating, making it a trusted choice for many people, especially entrepreneurs who might be unable to request loans from regular banks.

FairMoney has received over 10 million downloads on the Google Play store as the app is known for providing quick loans within 5 minutes with no paperwork or collateral needed. Depending on your profile and payment history, interest rates on the loan app range from 1% to 5% per month. Taking multiple loans with FairMoney and repaying on time will help you get better rates. However, in addition to the interest rate,

FairMoney charges a processing fee for every loan you get with them.
The loan application runs as an adequately regulated bank under the Central Bank of Nigeria (CBN), with complete clearance from the FCCPC, Nigeria’s top government organization for regulating competition and protecting consumers. People may rely on the platform’s services since they comply with legislative requirements, but this endorsement gives them even more assurance because it shows the platform’s dedication to ethical business practices and consumer protection.

8. Kiakia Loan App

Active Since: 2015
Affiliated to: Credit Bureau Association of Nigeria
Interest Rate: 5.1%
Ratings: 4.⅖

Kiakia has been a financial companion for Nigrians since 2015, offering a slightly higher interest rate of 5.1%. The app specializes in money lending through virtual means such as the Internet. KiaKia is fully compliant with the money lending legislative requirements of Nigeria and it promotes responsible lending and borrowing.

Kiakia is known to provide a trusted lending platform with affiliations to the Credit Bureau Association of Nigeria. Its direct personal loans are flexible and match borrowers with individual or corporate lenders at mutually agreed rates. They offer loans from N10,000 and N200,000 for a minimum duration of 7 days and a maximum of 30 days. The loan review process is completed within a few minutes of successfully submitting a loan application. Users have rated Kiakia with 4.2/5, reflecting its dedication to serving borrowers.

9. Okash Loan App

Active Since: 2018
Affiliated to: Opay
Interest Rate: 5.1%
Ratings: 4.4/5

Opay, or Okash loan app, is one of the most popular apps of its kind in Nigeria. It is a mobile lending platform that offers loans ranging from NGN 3,000 to NGN 500,000 without requiring collateral. The platform utilises a borrower’s BVN (bank verification number) to disburse loans swiftly and conveniently. Okash provides a seamless loan application process, allowing users to apply for loans and receive disbursements within minutes over a flexible repayment period of 91 days to 12 months.

However, the Okash loan app has strict eligibility criteria designed to ensure borrowers have the financial capability to repay the loans. The platform examines evidence of a borrower’s ability to repay and may refuse loans if it discovers insufficient evidence. It effortlessly stands out from the rest as a low-interest lender. The monthly interest rates on Okash vary between 3% and 30%, depending on the borrower’s credit score. One of the best things about the app is that there is usually zero need for paperwork or collateral for processing your loan.

Okash is affiliated with its parent company, Opay, which is currently one of Nigeria’s leading digital banks. The Central Bank of Nigeria duly licensed the app, ensuring compliance with regulatory requirements. The loan app also prides itself on responsive customer service, which is crucial for addressing queries and concerns and providing assistance throughout the loan process.

10. Renmoney Loan App

Active Since: 2012
Affiliated to: Renmoney Microfinance Bank
Interest Rate: 5.2%
Ratings: 4.⅘

Renmoney has been bridging financial gaps for Nigerians since 2012. It is one of the best loan apps in Nigeria, with tight monthly interest rates ranging from 2.12% to 2.65%. The money loan app provides a flexible loan range, offering amounts from NGN 5,000 to NGN 1,000,000 that help to address various financial needs, with repayment period options ranging from 91 days to 12 months.

While it offers a relatively low-interest rate, it also compensates with a user-friendly experience. However, the loan app also charges a management fee of 1% on loan amounts, which, although relatively small compared to the loan size, demands that borrowers make measured considerations when calculating the total cost of the loan. Renmoney is affiliated with the Central Bank of Nigeria and Renmoney Microfinance Bank. This assures customers of unshakeable transparency and trust in its operations.

The app is rated 4.4/5 by users. The loan application asks customers to link their bank accounts to ensure responsible lending and allow them to make informed selections. Thanks to this, the platform may now access the user’s six-month bank statement and complete financial history. Renmoney’s loan application evaluation procedure is rumored to be meticulous and time-consuming, with loan application reviews often lasting several months. For those looking for quick cash, this may be a disadvantage.