How to Get A Quick Loan Without Collateral in Nigeria

Quick Loan Without Collateral
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Online lending platforms and/or mobile apps makes it possible for individuals and small business to get a quick loan without collateral. Thus, You no longer need to deal with the frustrating challenges of accessing conventional bank loans.

In this post, we highlight some of the popular loan apps in Nigeria or online lending portals where you can get a quick loan without collateral.

But first, let us look at How it works.

Basically these websites and loan apps are products of financial technology companies (fintech). Computer algorithms uses set parameters to assess loan applicants and decide whether they get the loans or not.

On approval, the applicant receives the loan am\ount directly into his bank account. Similarly, when repayment is due, the borrower’s bank account is automatically debited for the loan amount plus interest.

What you need to access loans on these platforms are

#Smartphone or Tab

#Data subscription

#Bank account

#Bank Verification Number

#Debit Card (ATM)

Procedure for applying and obtaining loans from mobile lenders.

  • Research online lending platforms available and decide on the one to use
  • Download the mobile application from the Google Play Store
  • Register and create a PIN
  • Login and fill out their forms
  • Supply all the information required.
  • Link your ATM card.

The first step is the pre-qualification stage.  Once you have completed the online forms, the system will generate a report stating whether or not you are meet the requirement for loans on the platform.

If you meet the criteria, you can then apply for the loans. Some platforms will disburse instantly, others will disburse within 24 hours. On most platforms you can access minimum of N10,000 and up to N2,000,000.

Enough of the tutorial, now let’s identify some of the websites/apps that give quick loan without collateral in Nigeria

1. Branch  

On the branch mobile app, you can access loan of between N1,000 to N200,000 with up to 64 weeks repayment period. Generally interest they charge depends on an applicant’s credit score.  But it may range from 14 per cent to 28 percent per annum.

The Branch App is a popular choice for entrepreneurs in Nigeria and Kenya .

2. Palm Credit

You can take as many instant loan as you need on the Palm Credit App once you know your credit limit.  Palm Credit is a virtual credit card that makes it easy for you to access loan of up to N100,000 using your mobile phone from any location. 

As you repay, your credit score improves and you are able to take more loans. You must be 18 years and above, have a valid phone number and a bank account to be able access palm credit loans.  

Two types of loans are available on the platform – airtime loan (up to NGN10,000) for airtime purchases.  And installment loan (up to NGN100,000).

3. Kiakia

Kiakia means quick quick in Nigeria street language. I guess the promoters use this expression to emphasis how fast it s to access loans on this platform.  

A digital financial market place, kiakia uses big data, machine learning algorithms to provide both direct and peer to peer lending.  What this means is that  you can obtain loans and also lend through this platform.

The interest you pay on loans depends on your credit score and can range from 0.4 percent to 0.8 percent per day.  Kiakia appeals to the ordinary Nigeria who is looking to where to get a quick loan without collateral to meet urgent personal needs.

4. Snap Credit

 Snap Credit focusses on salary earners. It provides people in paid employment with the opportunity to access cheap credit against their pay cheques.  

Employees apply for loans online using their mobile phone devices.  Verification is done real time and approved  loan amounts credited to applicant’s account. 

Repayments are tied to employees’ salaries payments.  This means that you must be in a paid job to qualify for Snap Credit loans.

5. MoneyPal

MoneyPal is a product of Zedvance Finance Limited, a consumer finance company. With the moneypal app, users can access loans of up to NGN5,000,000.  Their nano loan allows you get as little as NGN10,000. 

The operators of moneypal promise rapid disbursement, responsive support and transparency.

6. Paylater

This is a popular completely online lending portal that gives individuals and small businesses up to N500,000 loans without collateral. 

Paylater loans are instant and you can receive your cash into your bank account in as little as 5 minutes on approval. Repaying on time and unlock higher loan amounts at lower interest rates. This is a reward for improved credit score on the Paylater platform.

7. Credit Direct

Credit direct is a leading micro-lending company in Nigeria.

They offer a variety of loan products: car, house rent, school fees, etc.  On creditdirect you can access up to NGN5,000,000

8. Fair Money

This app offers short-term loans to help its users deal with urgent needs: bills, business and much more.  Its loans are accessible anytime, anywhere and disbursement can be done within five minutes of loan approval.

Fair Money gives personal loans, education loans and business loans, using technology to make the process instant, affordable and without hassle.

Loan amount offered by fairmoney ranges from ₦2,500 to ₦100,000 with loan term durations of 4 – 26 weeks and equivalent monthly interest which ranges from 5% – 28%. There are no additional fees for processing your loan or hidden costs.

9. ALAT by Wema Bank

This is a digital bank that is powered by Wema Bank.  through which users can have access to a full compliment of banking services: account opening, savings, money transfer and bills payment.

Users can also have access to instant loan of up to N200,000 without the usual paper work of the bank. Processing of loan request on the Alat Platform is completely online.  No visitation to the bank and without the bank’s usual collateral conditions.

Interest charged on ALAT loans are based on credit score.

10. Aella Credit

Aella Credit  focusses on employee lending.  It’s algorithm determines applicant’s eligibility focusing on social, demographic and debt/income ratios. 

Aella can give loans without collateral of up to NGN100,000 at an interest rate of between 4 percent to 29 percent. The more you repay your loan on time, the more you are qualified for a higher loan.

11. Fint

 Fint partners with institutions like Vetiva, First Bank, Old Mutual and XDS Credit Bureau to provide market place lending. It’s goal is to enhance financial inclusion in Nigeria.

On the fint app, you can borrow between NGN20,000 and N1,000,000 for a fixed term of 3 months, 6 months or 12 months and at an interest rate that is as low as 2 percent monthly. 

Get the loans without collateral and pay back principal and interest monthly.

12. QuickCheck

Users of QuickCheck mobile app can access up to NGN30,000 hassle free loans without collateral for a tenor of between 15 – 30 days. 

This platform is a mass consumer loan app designed to reach as many financially excluded people as possible.

A Word of Caution

Online lending is disrupting the traditional ways lending is done in Nigeria. It is making access to credit easier for individual and small businesses. But with more portals and mobile apps being introduced into market regularly,  it advised that one does a thorough due diligence before patronizing some of these programmes. 

Doing business online come with some risks.  

Some people have complained of inefficiency on some of the platforms out there.  There are apps that have been described as fraudulent as they will ask for upfront fees at the application stage. 

To stay safe: conduct due diligence on any platform before you are considering to use, ask questions and get referrals.  If somebody has used a certain platform and is happy,  it is a comfort; read and understand the terms and conditions, and ensure you comply with them.

As a rule, patronize the popular apps/portals. A credible institution will not ask you to part with money in the name of upfront fees. 

Finally, easy access to loans can be an easy road to debt. Be careful as many of these online lenders can use unconventional means to recover loans from debtors.  A lot borrowers have been unnecessarily embarrassed over small debts. 

If you find you over-borrowing, take these steps to avoid getting into a debt trap

Buchi creates content and leads the Team at Kobotalk Management Services; a business development and investment consultancy firm. He provides strategic advisory to help SME's, small business owners and HNI's grow profitable business and make informed investing decisions.

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