• Here is a look at the top peer-to-peer lending platforms in Nigeria.
  • The most popular loan lending platforms compete with various interest rates.

Financial technology companies are disrupting the lending industry and some of them offer quick, easy and cheap loans with no collateral.

Unlike the traditional banks that offer loans with high interest rates, journey-of-no-return paperwork or requirements as well as provision of guarantors among others, these fintech companies, otherwise known as lending platforms provide loans in simple and effective ways.

Notably of mention is Kwik Cash that offers loan on USSD platform in partnership with banks, technology companies. Kwik Cash is one of the most effective and convenient ways of getting quick and instant loans in Nigeria. Others also offer instant loan via mobile apps and websites.

Business Insider Sub-Saharan Africa looks at some of the most popular loan lending platforms and their interest rates for consumers to make an informed decision while taking quick, instant and cheap loans in Nigeria.

These are the popular loan lending platforms in Nigeria at the moment:

1. Paylater

Paylater is a quick online lending platform that offers short term loan without collateral for urgent needs and expenses.

Through Paylater, you can get a loan from N500,000 to N1 million at different interest rates between 5 to 12.6%. The loan is determined by the risk involved and cash activities via your BVN.

When I checked out Paylater app, I applied for a loan of N70,000, the system automatically generated N68,500 (meaning some charges of about N2,000 have been incurred). The system also pegged interest rate at 12% monthly for a four-month repayment plan at N25,345 per month.

This simply means I will return N101,380 to Paylater in April 2019 for a loan of N70,000 in January 2019.

Here's a screenshot from the app:

Paylater lending app
  • Requirements: BVN, Passport photograph and address
  • Platform: Mobile App
  • Interest rate: 12 - 15% (Depending on risk level)
  • Loan tenure: 3 to 12 months
  • Top up: No
  • Repayment channels: Direct debit

2. Renmoney

Renmoney customers can get loans up to N4,000,000 that can be repaid within a period of nine months without tendering collateral or a guarantor.

To apply for a loan on Renmoney, you’ll have to meet certain conditions. Applicants are expected to be between the age of 22-59, have a steady source of income with a functional current or savings bank account and a valid means of identification.

Upon request, the applicant is expected to provide verification of their monthly income and a report of their previous loans from a credit bureau. All these are to be submitted to any Renmoney office for confirmation.

For Renmoney quick loan request, a N70,000 loan would worth N83, 690 in four months repayment plan.

This implies a % between 4% to 4.5% per month.

Renmoney lending app
  • Requirements: BVN, Bank statement, Valid ID card, Employment letter
  • Platform: Internet
  • Interest rate: 4 - 5%
  • Loan tenure: 3 to 12 months
  • Top up: No
  • Repayment channels: Quickteller, cheque, POS, Cash and Online transfers.

3. Aella Credit

Aella credit is an app-only easy and quick loan platform. It is designed to help employees access more funds between 1,500 to 700,000 and an interest rate between 4% - 29% monthly.

Aella credit is available in Ghana, Nigeria and the Philippines.

Aella lending platform
  • Requirements: BVN
  • Platform: Mobile App
  • Interest rate: 4 - 29%
  • Loan tenure: 1 to 2 months
  • Top up: No
  • Repayment channels: Direct debit

4. Kwik Cash (Mines)

Kwik Cash offers both internet-based, app and USSD loan options. It partners with banks, mobile network operators, and technology companies on a mission to make personal banking services convenient and accessible to all Nigerians.

On Kwik Cash, you can get a loan as high as N15,000 at 15% interest rate for 15 days (half a month)

Kwik lending platform
  • Requirements: BVN
  • Platform: USSD, Mobile App
  • Interest rate: 15%
  • Loan tenure: 1 month
  • Top up: No
  • Repayment channels: Direct debit

5. Rosabon Finance Quick Loan

Rosabon finance is one of the fastest and easiest ways to access a personal loan in Nigeria without collateral.

On Rosabon platform, a loan of N70,000 for interest attracts a 4-month repayment of N82,915. That's about between 4 to 6% per month.

Some of the requirements for getting a quick cash loan from Rosabon finance include being in a paid employment, between 21 and 58 years, have a salary account, have a pension account or tax ID, have a valid Proof of Identification and a recent utility bill.

rosabon lending platform
  • Requirements: Employment letter, salary account, pension account or tax ID, Valid ID, Utility bill.
  • Platform: Internet
  • Interest rate: 4 - 6%
  • Loan tenure: 3 to 12 months
  • Top up: No
  • Repayment channels: Cheque, Direct debit

6. Zedvance

Zedvance Limited is a consumer finance company providing a quick and fast loan at a highly competitive rate.

For Zedvance, the interest rate depends largely on how well you can bargain and the level of risk involved in your loan. It is for salary earners in the country.

Zedvance's quick cash loan, interest stands between 4.0% to 4.5% and loan amount largely depends on your net pay.

Using its loan calculator, a loan worth N70,000 for 4 months will attract N82,456 in total repayment.

Zedvance lending platform
  • Requirements: Employment letter, Salary account, Official email address, Valid ID, Utility bill.
  • Platform: Internet
  • Interest rate: 4 - 4.5%
  • Loan tenure: 3 to 12 months
  • Top up: Yes
  • Repayment channels: Cheque, Direct debit

7. Page Financials

Page Financials is an innovative retail financial institution offering various quick personal and salary advance loan to meet the financial request of customers.

On Page Financial, it takes six steps to request for a loan and the first one is inputting your BVN details.

For its loan, Page Financials offers a daily rate of 0.5% which accrues on its Debit card issuance also known as Pledge Finance.

Pledge Finance debit card is a preloaded with up to N500,000 depending on your net monthly income. The company also charge a one-off fee of N1,500 for the card valid for a period of 3 years.  

The interest rate is accrue daily at 0.5% which is about 15% monthly on the loan card.

Pledge lending platform
Page Financials lending platform
  • Requirements: Employment letter, Salary account, Valid ID, Utility bill.
  • Platform: Internet
  • Interest rate: 15%
  • Loan tenure: 3 to 12 months
  • Top up: Yes
  • Repayment channels: Cheque, Direct debit

8. FINT Loan

FINT helps match lenders (individuals looking to lend) with creditworthy borrowers for a competitive return and at an attractive interest rate.

The quick loan platform offers interest rate based on risk score – using a numerical expression based on a level analysis of a person's information.

Apart from this, like other lending platforms in Nigeria, FINT charges the borrower two fees that are both one-time payments. The first is a verification fee (NGN 3000) and the second is a closing fee (8%). The closing fee is to be paid before disbursement of the fully-funded loan. In addition, a transfer fee (1.8% + NGN100) is passed on to the borrower.

FINT interest rates range from 3% to 5% per month depending on borrower’s risk score.

Fint lending platform
  • Requirements: Employment letter, Salary account, Valid ID.
  • Platform: Internet
  • Interest rate: 3 - 5%
  • Loan tenure: 3 to 12 months
  • Top up: Yes
  • Repayment channels: Cheque, Direct debit

My Verdict:

  1. Despite the motive of providing quick, easy access, cheap interest rates and collateral free loans, most of the lending platforms still offer high interest rates compared to commercial banks.
  2. Paylater and Kwik Cash are the easiest to use in terms of documentation and offer fast access to credit.
  3. Kwik Cash is the most innovative with its USSD option
  4. Kwik Cash has the highest interest rate at about 15% for half a month.
  5. Zedvance offers a more competitive interest rate pegged at 4% to 4.5% compared to other lending platforms.
  6. The interest rates for most of the platforms are not fixed based on factors such as risk level of a borrower, salary range, house rent and others.