The 2020 pandemic brought a lot of changes to the financial industry. Since it became compulsory to stay at home because of the pandemic, online loan platforms have become very popular. Essentially, these platforms are simply electronic lenders that offer people loans without any need to visit a physical location. Fortunately, the popularity of these platforms grew, even after the pandemic and now, many Nigerians prefer to borrow loans online due to the convenience it offers. Today, there are hundreds of lending platforms in Nigeria and most of them offer monthly repayments packages to customers. If you are seeking these kinds of loans, then you need to check out this article that lists the names of online loans with monthly payments in Nigeria.
What are Online Loans?
Online loans are loans that you can borrow without needing to set foot in a bank or loan company. The whole process involved in borrowing this kind of loan, from application to disbursement to repayment, is executed online. You won’t have to inconvenience yourself by leaving your house.
Nowadays, more people prefer to use the online loan application process as opposed to conventional lenders like banks because online lenders generally require minimal documentation. Also, they usually come at lower interest rates than traditional bank loans.
The kind of loans offered by online lenders are primarily unsecured loans, which don’t demand a collateral or guarantor. Some of these kinds of loans include personal loans, instant loans, payday loans as well as SME loans. Although some banks are slowly transitioning to online lending, the majority of them remain traditional when it comes to loans. This means that they’d require you to be present in the bank for the loan application and approval, especially when it involves a huge sum.
How Do Online Loans Work?
As the name implies, online loans are loans that you can obtain digitally, right from the convenience of your home. Essentially, lenders that offer this kind of loan assess you based on your credit rating. They check your credit history and past transactions to help them determine if you will be capable of paying back the loan. This assessment determines if you are eligible for the loan and the amount of loan you are eligible to obtain.
What are the Steps To Apply For an Online Loan
The steps it takes to apply for online loans are very straightforward. Here’s what to do:
- Do your basic research and locate the most suitable lender for you. This lender should offer the best interest rates based on your loan needs.
- Access the lender’s website and tap on the “apply now” button.
- Thereafter, fill out your personal details and other information required, according to your loan requirements
- Upload all the KYC documents needed for the loan. This includes your BVN, a valid means of identification, original passports, etc
- Wait for your application to be reviewed by the lender. The platform will check for your creditworthiness, and repayment capability, as well as verification of your identity
- Your loan application will either be authorized or rejected depending on the parameters listed in the last step.
If your loan application gets approved, the amount you applied for will be credited directly to your bank account instantly or after one business day, depending on the lender you use.
Risks and What to Consider Before Applying
Although online loans give you access to instant financing, you still need to weigh some risks before you apply. Here are some things you should consider before applying for a loan:
- Carefully go through the terms and conditions of the loan to avoid any misunderstandings later.
- Check if there are caution fees, early settlement fees, or prepayment or late repayment penalties attached to the loan.
- Research the lending platform’s credibility, authorization, and license status before you share your personal data.
- Avoid borrowing more money than you can reimburse comfortably based on your income.
- Compare different interest rates and features across numerous lending platforms to get the most suitable deal.
- Understand how defaulting on the loan affects your overall credit score and your capacity to borrow loans in the future.
Top 10 Online Loans with Monthly Payments in Nigeria
Now that we’ve gone through the meaning of online loans, how they work, and the things to consider before taking out an online loan, check out the top 10 online loans with monthly payments in Nigeria. We’ve ranked these lending platforms based on loan amount, repayment period, interest rates, eligibility criteria as well as, and application process.
1. FairMoney
FairMoney offers borrowers instant loans, with amounts ranging between N1,500 – N500,000 and repayment duration starting from 91 days to 180 days. This lender offers a reasonable interest rate, with an interest rate of 10% per month and a very flexible repayment schedule. FairMoney is one of the best online loans with monthly payments in Nigeria.
What are the Features of FairMoney Loan?
Here are the basic features of FairMoney loan:
- Minimum loan amount: N1,500.
- Maximum loan amount: N500,000.
- Repayment period: 91 – 180 days.
- Interest from 10% per month.
- No paperwork or collateral is required.
- Instant disbursement into your bank account.
How Can I Apply For FairMoney Loan?
Follow the steps to apply for a FairMoney loan and pay back per month:
- Download the FairMoney app from Google Play Store or the AppStore
- Provide your personal details and BVN. Also, enter your active bank account number
- Get approved within less than 15 minutes.
- Receive your loan instantly.
2. Carbon
Carbon is one of the leading online loans with monthly payments in Nigeria. Essentially, this lender offers you instant loans up to 1 million Naira with flexible repayment tenor ranging between 3 to 12 months. The interest rates for this loan are between 10-20% per year.
What are the Features of Carbon?
Here is a list of the basic features of the Carbon loan platform:
- Minimum loan: N50,000.
- Maximum loan: #1,000,000.
- Repayment period: 3 – 12 months
- Interest 10-20% annually.
- Instant disbursement to your bank account.
How Can I Apply For Carbon Loan?
Follow the steps to apply for a Carbon loan and pay back per month:
- Download the Carbon app and register.
- Complete KYC verification.
- Apply for your loan and get approval within a few minutes.
- The loan amount will be credited to your bank account immediately.
3. Renmoney
The Renmoney lending platform provides borrowers with personal loans of up to 5 million Naira with a loan tenor between 6 to 12 months. Most people consider this platform to have an easy online application process with reasonable interest rates.
What are the Features of Renmoney?
Here are the basic features of Renmoney loan:
- Minimum loan: N50,000.
- Maximum loan: A5,000,000.
- Repayment period: 6 – 12 months.
- Interest from 1.33% per month.
- Loans paid directly into your bank account.
How Can I Apply For a Loan From Renmoney?
Follow the steps to apply for a RenMoney loan and pay back per month:
- Go to the official RenMoney website.
- Click on ‘Get Started’ and complete the loan application form.
- Upload supporting documents like your ID, payslips, etc.
- Waiting for your loan to get approval within 24 hours.
- Receive loan disbursement after approval.
Alternatively, you can download the RenMoney app from Google PlayStore or the App Store to get started with your application.
4. Zedvance
Although the Zedvance platform is relatively new, it is quickly building a name in Nigeria. This app offers customers flexible loans of up to 2 million Naira with repayment tenors varying between 6 to 12 months. Zedvance only requires your BVN before approving your loan.
What Are the Features of Zedvance?
Here are the features of the Zedvance lending app:
- Minimum loan: N50,000.
- Maximum loan: 2,000,000.
- Repayment period: 6 – 12 months.
- Interest from 1.16% per month.
- Instant approval using BVN.
How Can I Apply For a Loan From Zedvance?
Follow the steps below to apply for a loan from Zedvance:
- Download the Zedvance mobile app and register. You can get the app from the Google Play Store or the App Store.
- Provide personal and income details.
- Get instant loan approval by entering only your BVN.
- Receive the loan amount in your bank account.
5. Aella Credit
Aella Credit is a popular digital lender that offers loans between N50,000 to N500,000, depending on your creditworthiness and has a flexible tenor varying between 1 to 12 months. It is one of the most popular lending apps you can find in Nigeria. This app uses an Al-powered underwriting technology to facilitate faster approvals.
What are the Features of Aella Credit?
Here are the features of the Aella Credit lending app:
- Minimum loan: #50,000.
- Maximum loan: #500,000.
- Repayment period: 1 – 12 months.
- Interest rate from 1.5% per month.
- No paperwork or collateral is required.
How Can I Apply For a Loan From Aella Credit?
Follow the steps below to apply for a loan from Aella Credit:
- Visit Aella Credit official website and sign up.
- Next, complete the loan application form.
- Upload all the requested documents.
- Get approved within a few minutes.
- Receive loan disbursement in your account.
Alternatively, you can download the Aella Credit app from Google PlayStore or the App Store to get started with your application.
6. Kiakia
Kiakia is an app that loans and short-term advances up to 10 million Naira with flexible tenor varying between 6 to 12 months. This app is one of the best online loans with monthly repayment in Nigeria.
What are the Features of Kiakia Loan?
Here are the features of the Kiakia lending app:
- Minimum loan: #100,000.
- Maximum loan: #10,000,000.
- Repayment period: 6 – 12 months.
- Interest rate from 1.5% monthly.
- Multiple loan products.
How Can I Apply for a KiaKia Loan?
Follow the steps below to apply for a KiaKia loan from the comfort of your home:
- Visit the official Kiakia website and create an account.
- Fill out the loan application form.
- Upload the required documents.
- Get approved within 2 days.
- Loan disbursed to account.
Alternatively, you can download the Kiakia mobile app from the Google Play Store or the App Store, register your details, and start your loan application process.
7. Specta
Specta is a lending solution that provides working capital and startup loans of up to N5 million for businesses with a tenor varying between 6 to 12 months. Sterling Bank provides this solution so your salary account or business account has to be domiciled with Sterling Bank or any other Nigerian Bank to be eligible for this loan.
What are the Features Specta Loan?
Here is a list of the basic features of the Specta lending platform:
- Minimum loan: N100,000.
- Maximum loan: N5,000,000 for members of the Sterling community and N2 million for other people.
- Repayment period/tenor: 6 – 12 months. However, if you belong to a Sterling company, your loan period can be extended to 36 months.
- Interest rate from 1.25% monthly.
- Industry-specific loans.
How Can I Apply for a Specta Loan?
Follow the instructions below to apply for a Specta loan:
- First, go to the official Specta website.
- Next, select the kind of loan you would like to apply for.
- Fill out the loan application form.
- Upload the required documents and submit your application.
- Get your loan approval within 2 days.
- Wait for the loan amount to get disbursed to your account.
8. QuickCheck
QuickCheck is a lending app that offers personal loans of up to 3 million Naira in less than 30 minutes. The loan tenor for this app varies between 3 to 12 months depending on the amount of loan you obtained.
What are the Features of QuickCheck Loan?
Here are the basic features of the QuickCheck lending platform:
- Minimum loan: #50,000.
- Maximum loan: A3,000,000.
- Repayment period: 3 – 12 months.
- Interest from 1.33% monthly.
- Online application and fast approval.
How Can I Apply for a QuickCheck Loan?
To apply for a loan from the QuickCheck platform, follow the steps listed below:
- First, visit the official QuickCheck website.
- Next, complete the loan application form.
- Upload KYC documents.
- Get your loan approval within 24 hours.
- Receive loan disbursement.
Alternatively, you can download the QuickCheck mobile app from the Google Play Store, register your details, and start your loan application process. Note that this app is only available on Google PlayStore.
9. Migo (formerly KwikMoney)
Migo, formerly known as KwikMoney, is a platform that offers personal loans with amounts ranging between N2,500 to N500,000. The tenor lasts between 1 to 6 months (180 days), depending on the amount of loan you obtained.
What are the Features of Migo Loan?
Here are the basic features of the Migo loan:
- Minimum loan: N2,500.
- Maximum loan: N500,000.
- Repayment period: 30 – 180 days.
- Interest rate from 6% flat monthly.
- Instant disbursement.
How Can I Apply for a Migo Loan?
The steps below highlight how to apply for a loan from the Migo app:
- Download Migo app and register your details on the app. Note that this app is only available on Google PlayStore.
- Next, apply for a loan by providing your BVN and account number.
- Get instant loan approval.
- The loan amount will be credited to your bank account instantly.
10. Quick Credit
Quick Credit is a digital lender that provides personal loans varying between N5,000 to N100,000 with a repayment period of just 30 days (1 month). So if you need a small amount to money to pay back within 30 days, then QuickCredit is your best bet.
What are the Features of QuickCredit Loan?
Here are the basic features of the QuickCredit loan:
- Minimum loan: N5,000.
- Maximum loan: N100,000.
- Repayment period: 30 days.
- Interest rate of 5% flat.
- Fast online application.
How Can I Apply for QuickCredit Loan?
Follow the steps below to apply for a loan from the QuickCredit platform:
- Visit the official Quick Credit website.
- Next, fill online loan application form.
- Provide personal and income details.
- Get your loan approval within a few hours.
- Receive loan disbursement after approval.
Before you choose which of the online loans with monthly payments in Nigeria to get a loan from, ensure that you compare each of their features. Features like interest rates, fees, tenor and even requirements should be checked so you’d know the platform that is most suitable for your needs.
What is the Minimum Credit Score Needed for Applying for Online Loans?
The minimum credit score needed for applying for an online loan depends on the lender. The lower your credit score, the lower the amount of loan you can obtain and the higher your credit score, the higher the loan amount you can obtain.
However, most lenders will check if you are indebted to any other platform before they borrow you a loan. So ensure that you are not indebted to any digital lender, bank, or financial institution before applying for a loan.
How Quickly Can My Online Loan Get Approved and Receive Funds?
Most online lenders say they process and disburse funds within 24 hours. So you can expect to receive the loan in your bank account within 24 hours.
Are There Prepayment Penalties For Early Repayment of Online Loans?
No, most online lenders in Nigeria do not charge prepayment fees. This means that you can repay your loan early without any penalties. However, confirm this by reading the terms and conditions of the platform before applying.
Final Thoughts
Now that we’ve gone through the top 10 online loans with monthly payments in Nigeria and their basic features, you have to decide the best option for you. Ensure that you choose a platform that is suitable for you based on your needs and convenience. If you won’t be able to pay back the loan immediately, then you should apply for platforms with longer tenors. Lastly, before applying for a loan, consider what you need the loan for, the loan amount you need, and your capability to pay back the loan. These are very important, as they make it easier for you to pay back the loan on or before the due date.
