How genuine is PalmCredit’s promise of stressless, no-collateral loans?

PalmCredit by NewEdge Finance Limited says it's offering convenient, no-collateral loans to Nigerians.

PalmCredit offers no-collateral loans.

It is a fact that a lot of people get into financial pickles every once in a while - for some, more often than that. And when you do find yourself in such a situation, what anyone would appreciate is speedy and easy access to funds.

Understandably, a lot of companies have come up with financial offerings and supposed digital solutions to help bridge this gap but what you find when you try to adopt the solutions from some of these companies are failed promises and lacklustre service delivery, alongside privacy breaches and other unethical practices that could leave you regretting why you even bothered.

Sure, the peculiarity of the Nigerian market makes most of these slip through the cracks and appear as the norm but it would be nice to actually have a company that understands customers’ pain points, and addresses them appropriately with products that deliver on their promise.

The PalmCredit app by NewEdge Finance Limited says it fully grasps the need that many Nigerians now have for convenient, instant access, no-collateral loans. And what the PalmCredit app seems to be doing is to position itself as the solution to stressful loan application processes and embarrassing loan recovery schemes.

But how genuine is that promise? Let’s try to find out using some important metrics.

What makes PalmCredit different from all other loan companies?

Maybe not much. But what they do, they seem to do really well. The promise of access to loans in minutes is genuine and you truly need no collateral of any kind to access their loans.

There have been no reports of hidden schemes or deceitful promises from customers. Theirs seems to be an assured case of promises made, promises kept.

Do they trade off this convenience with insane interest rates?

Simple and short answer: not really.

One of the things borrowers in Nigeria have become familiar with, either from traditional banks or the new-age financial institutions, are the exorbitant interest rates charged on loans. So it’s OK, if like me, you were wondering if these no-collateral loans being offered will slap you in the face with mad interest rates.

Palmcredit interest rates go from anywhere between 14% to 24%, with its monthly equivalent ranging from 4%~4.7%. The loan term is between 14 days to 180 days. Not unreasonable, to be fair.

How much can you get?

Offers on the app show that you can borrow up to ₦300,000 and that the maximum amount borrowable is adjustable at any given point.

Downsides

Few customers have complained about PalmCredit’s systems being a bit slow in recording and showing loans disbursed and/or settled but for the most part, they seem to be getting all the important things right.

How reliable is the product then?

On a reliability metric of 0-10, a solid 7.5. Fixing the few issues above will elevate PalmCredit to a perfect 10 - and hopefully, someone pays attention to the said issues and fix them quickly enough for a better customer experience.

But overall, PalmCredit’s current ability to deliver services exactly as promised suggests that it is on a sure footing as things stand today.

How can you get the PalmCredit App?

On Google Playstore. Click here to get it. The app is not available on the Apple Store yet so only Android phone users can download PalmCredit for now.

Is the App easy to use?

Again, our verdict on this has to be a yes. The interface is self-explanatory and all you need to do to qualify for a loan is provide the information required and everything is just easy to understand from there up to the point where you are cleared, and the money is disbursed into your account.

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