Interest rates of online loan apps in Nigeria – 2023

Interest rates of online loan apps in Nigeria – 2023featured image

Last night, while chilling at home, an amazing business idea came to me. Next thing I did was to hit up all my friends asking if they were interested in investing. None of them were interested (understandably), so I went to the FairMoney app to get a loan. As I was logging in, a thought popped into my head. What in the world makes these loan apps so attractive that we all run to them nowadays? I did some digging, and these are some of my findings.

What is a loan app?

A loan app is a mobile software (or application) that allows its users access loans without going to a physical bank or the tedious process of getting a traditional bank loan.

Loan apps should ordinarily be registered businesses backed up by good insurance. Unfortunately, most of the time, that’s not the case in Nigeria. Today, I’ll be teaching you how to apply for low interest loans, how to find and identify credible loan apps in Nigeria and the benefits of loan apps.

Let’s get cracking!

How to apply for a loan on loan apps in Nigeria?

Different loan apps have their own process of loan application but on a foundational level, they all follow these steps

Download the app from either the play store or app store

Sign up with basic information like your name, address, phone number and BVN

Fill in a short application with basic personal & professional details

Choose the loan amount 

Submit your application

Loan apps in Nigeria have made it so easy to get loans. This process takes a few steps on most apps and these steps can be completed in minutes!

How to find a loan app

By searching for the term ‘loan’ or ‘loan apps’ etc., on the play store or app store

By word of mouth (ask your friends which they’ve used)

By checking out this list we’ve compiled.

How to identify credible loan apps in Nigeria

Here are a few qualifications to look out for when deciding the loan app to use:

  1. An official address 
  2. A website
  3. Verified social media channels especially Facebook, Instagram and Twitter.
  4. Good ratings on the app store ie. A 4.0 rating

To make this even easier for you, we’ve compiled a list of the top online loan companies and loan apps in Nigeria.

Benefits of taking a loan from a loan app

  1. You can get a loan within minutes ie. you need little to no documentation. Don’t believe us, check this out
  2. You can get loans with low interest rates
  3. Some even offer interest free loans!
  4. Repayment is easy 
  5. It helps boost your credit score for higher loans

Okay, so among all these loan apps, how do you then identify which one you should download?
Hehe. That’s what this section is for.

What to look out for when getting a loan?


Most loan apps in Nigeria typically charge interests, as well as late fees to discourage defaulters. Please note that, if a loan app or online loan company asks for processing fees or any sort of fees before the loan is disbursed, then they are most likely fraudulent.

Loan amounts

Most good personal loan apps offer up to ₦1,000,000, but the amount to be given to you will be dependent on your credit worthiness. If an online loan company or loan app offers to give you a substantial amount without accessing your credit worthiness, you should probably watch out as they may not be genuine.

Fund disbursement

Check if the funds you requested are disbursed once your loan is approved or if it’s disbursed in smaller amounts. Most credible loan companies disburse the approved loan amount at once rather than in bits.

Interest rates

This is the one that plagues most people. Getting a loan and realising the interest rate is too much considering your earning capacity is a no-no. Before you get a loan, look at the list of the top online loan apps, consider all the previously listed factors, then consider the interest rate and make a choice of which loan app best suits your needs putting in mind your earnings.

Here is a list of the interest rates for the top 8 loan apps in Nigeria as of 2022

Loan appInterest rates
FairMoney2.5% to 30% monthly or 30% to 260% APR
Branch15% to 34% monthly
Kuda0.3% daily
QuickCheck2% to 30% monthly
Carbon2% to 30% monthly Or 23% to 68.3% APR
Aella6% to 20% monthly Or 22% to 264% APR
Palmcredit14% to 24% monthly Or 48% to 56% APR
Renmoney2.9% to 34.17% monthly
Interest rates of loan apps in Nigeria

Now, with all this my plenty of talk you may still be like, “please isn’t there a loan app in Nigeria with interest free loans?” abi there’s no non-interest loan in Nigeria. 

😅Omo, there is… Sort of. 

You see the loans 0.1%, 0.3% loans, are currently the closest you will find.  But, do you know there were interest free loans up until the beginning of this year? Yes, there were and that’s not the only shocking thing. If you look at the trend of interest rates in Nigeria, it has seen a steady downfall post the 1990s. Since the introduction of loan apps, loan interest rates have further dropped. So, it’s fair to say that the loan apps mentioned above, have low interest rates.

Alright back to interest rates. Let’s gist you a little bit of the factors considered to arrive at the different loan interest rates.

Factors considered when deciding your interest rate

Credit score

This is one of the main things considered when loan apps are determining if a loan should be given to you or not. The major source of your credit score is the CRC credit bureau. If you take a loan somewhere and do not repay or repay late, then the loan company is mandated to tell the CRC and that leaves a spot on your credit score. This increases your interest rate when next you try to get a loan, because you are now considered a risk. To avoid this, you need to pay as at when due or extend your payment period as your loan company allows. Here are other benefits of early repayment.


A higher income means you have the ability to pay back the loan at the agreed time. This tends to help increase the loan amount you can take and gives you a better loan interest

Existing lending and banking relationships

Your lending and repayment reputation also influences your ability to access better loan amounts and better interest rates. This means if your loans are repaid in a timely manner, the amount accessible to you will increase and your loan interest will become better. 

The same thinking goes for bank apps that offer lending services. If you use the banking service frequently, this will affect the amount of loans and the interest rate that is offered to you when you use their lending services. Do check out the banking features offered by the FairMoney app.

There are a few things to understand about online loans in Nigeria, loan apps and loan interest rates, but once you understand these things, it’ll be easier to take a loan and very difficult to scam you. Here are a few blog posts that can help increase your knowledge.


How are interest rates calculated for a loan in Nigeria?

This varies from company to company or from app to app, but the 3 major factors are your credit score, your income and your existing relationship with that app or company.

How can I check what my interest rate is?

On the FairMoney app, you can check your interest rate by attempting to get a loan. You can proceed with the loan or cancel it, once you view the interest rate. Similarly, when you get other apps, you can check your interest rates inside the app.

What is the maximum amount of loan I can get?

The maximum limit of apps differ from each other. For example, with Branch you get get a loan amount as high as ₦200K, while in 9ja you can get ₦300K. You can check the highest amounts provided by apps in their website or app store listing.
FairMoney offers up to ₦1,000,000, but the amount you get is determined by factors such as your credit score, your income and your existing relationship with the us.

How can I check loan balance in an app?

On the FairMoney app, your loan balance is on the homepage once you login. To see a detailed breakdown, please click the “profile”, then click “manage loan”

How to apply for a loan in FairMoney?

Simply download our app here

Sign up and complete the KYC.

Fill in a short application with personal & professional details

Choose your loan amount

Submit your application!