Features Of Loan Apps In Nigeria

a) Qualification – refers to the general conditions that have to be met before one can actually proceed with the registration process. Such conditions may include; citizenship,age, income source, identity verification documents, proof of income etc

b) Registration – refers to submission of information regarding personal, employment, next of kin etc as well as submission of various verification documents in order to create an account and access loans. Such information includes name, date of birth, phone number, address, BVN number etc

c) Application – This can be done upon successful account creation and activation and can be achieved via different platforms including online, loan apps or ussd.

d) Loan Limit – refers to the minimum and maximum loan amounts available to a particular individual upon successful loan approvals and are usually dependent upon a variety of factors.

e) Loan Interest Rate – refers to a proportion of the principal that a lender charges a borrower which usually contributes to the overall repayment amount. Interest rates may be fixed interest or dynamic depending on loan amount as well as repayment duration.

f) Loan Duration – refers to the period between loan disbursement and repayment and may vary depending on loan amount whereby larger loan amounts tend to have longer repayment periods and vice versa.

g) Repayment – involves returning money previously borrowed from a lender albeit with interest. There exist several repayment options offered by various lenders such as direct debits, bank transfers or in-app repayment features.

h) Default Penalties – refers to the negative consequences arising from late/failure to meet loan due dates. They can range from debt shaming, additional charges or blacklisting to credit bureaus.

Who Regulates Loan Apps In Nigeria

Loan Apps in Nigeria are regulated by the Federal Competition & Consumer Protection Commission (FCCPC) whose functions are;

i) Promote competitive markets through monitoring market practices by businesses in order to prevent dominance/monopolies.

ii) Regulate mergers through strategic approvals/disbandment in regards to their effects on the overall market efficiency.

iii) Handle customer complaints in relation to service delivery by the various service providers.

iv) Provide quality assurance & development to consumers by ensuring only safe and quality products penetrate the market

v) Provide consumer and business education on consumer rights as well as business obligations to competition and consumer protection.

vi) Share information related to performance of its functions such as news releases, advisories, alerts etc

vii) Ensure effective service provision through research on consumer behavior/ market trend to aid in planning and development of strategies beneficial in achievement of its overall mandate.

viii) Ensure adherence to all relevant laws pertaining to competition and consumer protection by all market players.

Loan Apps Approved By FCCPC In Nigeria

Owing to public outcry regarding the negative business practices employed by some rogue digital lenders in Nigeria, FCCPC has implemented a regulatory framework and guidelines for all digital lenders to abide by.

Consequently, this move has necessitated fresh registration of all lenders upon which lenders who meet the requirements will be allowed to continue with operations.

Below is a list of Nigerian loan apps approved by the FCCPC.

Types Of Loan Apps In Nigeria

There exist various options with which Nigerians can apply for instant loans depending on the platform provided by the digital lenders which are;

Online loans

These are web portals that allow loan registration and application without necessarily having app installations.

The whole process may entail;

1. Navigating to the lender’s online portal
2. Creating an account by providing all the required details
3. Uploading any required verification documents
4. Making the loan application
5. Submitting bank details and uploading the relevant financial documents such as bank statements
6. Waiting for credit assessment to determine loan approval/decline
7. Loan disbursement

Legit Online (Web-based) Loan Apps In Nigeria

Note: This list contains legit online loan apps in Nigeria derived from the list of digital lenders approved by the FCCPC

Loan Apps

These are apps sourced from either Playstore/Appstore that require installation before loan applications can be made

The process entails;

1. Downloading loan app from Playstore/Appstore
2. Installing, launching and creating an account within the loan app
3. Granting the loan app permission access to various phone functions
4. Making loan application
5. Waiting for loan approval and subsequent loan disbursement

Legit Loan Apps In Nigeria For iPhone Users

Over the years, the iOS platform has been regarded as being the most secure platform compared to android in regards to malware largely due to its strict policy on app placements within its Appstore.

Consequently, most developers who do not meet said requirements thus opt for the Playstore due to their more lenient policies and as such, more apps tend to be available to android users than iOS users.

Similarly, this issue is also prevalent in Nigeria when it comes to loan apps for iPhone users. Fortunately, there are a few digital lenders who cater to this small percentage and they include;

Note: This list contains legit iPhone loan apps in Nigeria derived from the list of digital lenders approved by the FCCPC

Legit Loan Apps In Nigeria For Android Users

With majority of Nigerians owning android smartphones, digital lenders find it easy to develop android loan apps in Nigeria as compared to iPhone apps.

However, there are hundreds of fraudulent loan apps available in the Playstore thereby making it hard for Nigerians to identify the legit ones. Fortunately, there are several trustworthy loan apps in Nigeria as summarized by the list below.

Note: This list contains legit android loan apps in Nigeria derived from the list of digital lenders approved by the FCCPC

USSD Loans

A ussd code is a simplified command attached to perform a specified function by a service provider. Typically, ussd codes neither require installations on the user’s end nor internet access for full functionality.

In-fact, Nigerian ussd loan providers only require registration and service activation in-order for users to access said loans.

Some of the ussd loan code registration requirements for Nigerians include;

Being a Nigerian citizen with an active subscription to any of the Nigerian mobile network providers as well as possessing a BVN.

Loan Apps With USSD Codes In Nigeria

Upon meeting the above, one can then identify a Nigerian ussd loan code provider from the list provided below and proceed with loan application.

Loan Apps Without BVN In Nigeria

A Bank Verification Number commonly referred to as BVN, is a tool used to specifically confirm a customer’s identity to a banking institution thus reducing fraud, enhancing banking efficiencies in addition to allowing future credit opportunities to customers.

Acquiring a BVN can be as simple as enrolling at any Nigerian bank of choice and submitting your biometrics after which the BVN will be ready for use within 24 hours.

The generated BVN will eventually remain the same and active for a period of ten (10) years irrespective of whether you update banking records or switch banks.

However upon the lapse of the validity period, one is required to repeat the enrollment process.

While the BVN is mandatory for all Nigerian banks when applying for loans, the same cannot be said for a section of digital lenders whereby it is not a prerequisite. Some of the loan apps without BVN include;

Loan Apps Without ATM Card Binding In Nigeria

An ATM Card is a bank issued card linked to one’s bank account that ultimately enhances ease of payments and transactions such as deposits and withdrawals.

In addition, ATM cards also act as verification tools which can also be used to set up direct debits to one’s account.

As such, most digital lenders in Nigeria place it as a requirement for any loan applications.

However, due to rampant cases of unauthorized money withdrawals by unscrupulous digital lenders, majority of Nigerians opts for loan apps that do not require binding of ATM cards and they include;