No loan app is licensed to operate without due authorization and approval from the CBN (Central Bank of Nigeria). Essentially the CBN, which regulates all financial and monetary affairs in Nigeria, has to verify the authenticity of a loan app before its services become available to the public. For this reason, having a CBN approval automatically makes a loan application licensed and free to operate in Nigeria. This means that you can trust a loan app that is approved by the CBN. With the rapidly increasing demand for accessible and fast loans in Nigeria, it has become important for the average person to know the top CBN approved loan apps in Nigeria. This will ensure that you know where to look when you encounter a financial emergency.
What is the Regulatory Role of the Central Bank in the Financial Sector?
The regulatory role of the Central Bank in the financial sector is to guarantee that all financial institutions in Nigeria, including loan apps, execute their operations ethically. Essentially, the body ensures that regulated companies are financially sound and securely managed.
The regulation of financial institutions and markets in Nigeria is embarked through risk-based supervision and maintenance, which is underpinned by reasonable enforcement deterrents.
What are CBN Approved Loan Apps?
A CBN approved mobile lending application is an authorized financial technology (fintech) platform that permits users to apply for instant loans using only their mobile devices, such as smartphones or tablets. These applications are offered by commercial banks or other financial institutions and can easily be accessed by downloading the mobile app on Google PlayStore or App Store.
Top 10 CBN Approved Loan Apps in Nigeria
Here, we’ve taken our time to research and compile the top CBN approved loan apps in Nigeria. Check out everything you should know about them below:
1. FairMoney
FairMoney is currently one of the fastest and safest loan apps in Nigeria that you can trust because it is a fully-fledged Microfinance Bank that has been duly licensed by CBN and insured by NDIC. Besides giving out single-payment loans, FairMoney also gives instalment loans. According to reviews, this loan app disburses loans within just five minutes without any need to provide a collateral or guarantor. FairMoney has 450k positive reviews and more than 10M downloads. Here are the features and loan offerings of this app:
- Fair money offers borrowers loans ranging from N1,500 to N1,000,000.
- You have to pay back the loan between the duration of
- 61 days to 18 months.
- Its interest rate varies between 2.5% to 30% with APRs varying from 30% to 260%.
2. Carbon
Carbon is rated as one of the best mobile loan apps in Nigeria. The company is located at Adeyemo Alakija St, Victoria Island 100001, Lagos and has been duly licenced by CBN and also insured by NDIC so you can be assured that you’re in safe hands.
Carbon has over 141 positive reviews with over 1M downloads. Here are the features and loan offerings of the Carbon app:
- It doesn’t need you to provide collateral or processing fees.
- Carbon offers loans up to N1,000,000 with a promised cashback (10% – 100%) on the interest paid if you pay back on time. Its interest rates vary between 5% to 15%.
- The tenure of the Carbon loan is between 30 days to 12 months.
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3. Branch
There’s no way you can discuss the top CBN approved loan apps in Nigeria without listing Branch. With millions of downloads, the Branch loan app is the ultimate cash app for people during an emergency. The best part is that there is no paperwork or collateral needed. Here are the features and loan offerings of the Branch app:
- The loans vary between N2,000 to N500,000
- The loan tenure or the repayment period varies between 62 days to 1 year.
- The APR in Branch is from 34% to 271% per annum.
- Branch loan apps of monthly interest rates varying between 3% to 23%.
4. Umba
Umba Mobile is a loan service that is available in both Nigeria and Kenya. It has more than 1M downloads with thousands of positive reviews. It demands no collateral and rollover fees so borrowing from here is pretty straightforward. Here are some amazing features of the Umba loan platform:
- Umba offers loan amounts varying from N3,000 to N300,000. The more you pay back in time, the higher your chances of having a higher loan offer.
- Its interest rate is just 10%.
- The loan tenor is generally before/on the 62nd day.
5. Aella Credit
Aella Credit is a loan platform in Nigeria that offers people instant loans. Also, this company offers a wide range of investment options and a solid marketplace for health insurance. The app has 33K positive reviews on Google PlayStore with more than 1M downloads. With just a smartphone, your BVN and other basic information, you can get started on this app. Here are some amazing features of the Aella Credit loan platform:
- Aella Credit offers borrowers loan amounts between
- N2000 and N1,000,000.
- The loan tenure takes about 3 months and varies depending on some factors.
- Interest rates range between 4% and 30% with no late or rollover fees.
6. PalmCredit
PalmCredit is another authorized loan app in Nigeria with attractively low interest. This app has 149K positive reviews with more than 5M downloads. The best part is that with just your basic information, you can borrow loans from this platform. The PalmCredit loan platform has the following amazing features:
- It offers borrowers a loan of up to N100,000
- The interest rate here is between 14% to 24% per year. The equivalent monthly interest ranges from 4% – 7%.
- PalmCredit has an Annual Percentage Rate (APR) of 48% – 56%.
- The tenure varies between 14 days to 180 days.
7. OKash
OKash is a suitable loan app for you if you have a stable source of income and would like to borrow a loan to complement your earnings. With millions of downloads and over 133k positive reviews, this platform has definitely been of great help to Nigerians. The OKash loan platform has the following amazing features:
- OKash offers borrowers a loan amount between NGN 3,000 to NGN 500,000 and an interest rate varying between 0.1% to 1% interest rate.
- The interest rate is summed up daily.
- The Annual Percentage Rate(APR) for this app is from 36.5% to 360%.
- You have between 91 days to 365 days to pay back the loan you borrowed from OKash.
8. EaseCash
Ease Cash is another loan app authorized by the CBN in Nigeria. It has about 27K positive reviews and more than 1M downloads on Google PlayStore and offers individuals loans without collateral or deposits. However, the platform charges borrowers a one-time processing fee that varies between 5%-20%. The EaseCash loan platform has the following amazing features:
- Ease Cash offers loans between N1,000 – N100,000 with a Maximum APR of 14%.
- Its repayment duration ranges between 91 days – 180 days.
9. Quick Check
QuickCheck loan app is a fintech platform that provides collateral-free loan services to you. The app claims to use machine learning to predict their borrowers’ behaviour and evaluate their loan applications to check their eligibility. Here are some amazing features of the Quick Check platform:
- QuickCheck offers loans ranging between N10,000 to N200,000. However, the amount of loan you are eligible to borrow increases as you reimburse your loan on time.
- The loan tenor of this platform is typically between 4 weeks to 1 year.
- The loan interest rate on the QuickCheck platform is 5% per month on your first loan. However, the usual interest ranges between 2% – 30%.
- Your loan on this app also attracts a monthly interest rate of 1 – 21%. However, early repayment of loans guarantees lower interest rates.
- The amount of loan you can borrow cannot exceed 30% of your income.
10. NewCredit
New Credit is a fast loan service in Nigeria that gives loans in less than 5 minutes. It has about 49K positive reviews and over 1M downloads on Google PlayStore. Here are some notable features of the NewCredit app:
- New credit offers you a loan of up to N300.000 on their platform.
- The loan tenor is between 3 months (91 days) to 12 months (365 days).
- New credit has an interest rate of 4% every month with an Annual Percentage Rate (APR) of just 48%.
Check this out: Top 30 Quick Loans Without Collateral in Nigeria
Benefits and Risks of Using CBN Approved Loan Apps
Highlighted below are some of the benefits and risks of using the top CBN approved loan apps in Nigeria.
What are the Benefits of Using CBN approved Loan Apps?
Here are some benefits of using the top CBN approved apps in Nigeria:
1. Convenience
Loan apps offer users the comfort of applying for a loan from anywhere they are and at any time they like, without the need to visit any physical bank/financial institution branch.
2. Access to easy and instant credit
They generally offer a simple and straightforward loan application process, which makes it easy for users to fill out their basic and financial information and access loans immediately.
3. Lower interest rates
Mobile lending apps generally offer lower interest rates compared to conventional commercial banks. This is because these apps have lower overhead expenses and can easily pass on the savings to their borrowers.
4. Speed
CBN approved loan application offers fast and shorter processing times for all their loan applications. Users can easily get approved for loans they applied for in as little as 10 minutes, and the loan is often disbursed within the same day.
5. Flexible repayment terms
Mobile bank lending applications usually offer flexible reimbursement terms, which can be tailored to meet the borrower’s needs. This may include longer payback periods, lower monthly payment fees, or even the capacity to make early reimbursements without incurring penalties.
What are the Potential Risks of Using CBN approved Loan Apps?
As a user of the loan apps, you may face potential risks, such as:
1. High interest rates
The interest rates that loan apps charge are often higher than the interest charged by a regular traditional bank. So if you don’t have the means to meet their high-interest demand, this app may be unsuitable for you.
2. Late payment penalties
Loan apps generally charge their customers a higher interest rate if they fail to repay their loans on the due date. Also, late payment may attract other penalties.
3. Limited customer support
Since mobile lending apps are often automated, they typically have limited customer support. This is a major disadvantage for individuals who may want to ask questions and make inquiries.
4. Limited loan amounts
Mobile loan applications usually have limits on the amount of money that people can borrow. This is a major disadvantage for those who require larger loan amounts.
5. Limited transparency
Mobile lending applications are not as transparent as conventional commercial banks. This may make it difficult for borrowers to comprehend the terms and conditions of their loans, which leads to confusion and misunderstandings.
In all, it is important to only borrow loans for the right reasons and when you are certain that you are capable of paying back on or before the due date. Also, you need to make a plan on how to manage your loan as it can help you repay your debt faster.
Conclusion
The bottom line is that the top CBN approved loan apps in Nigeria are primarily the platforms you can trust if you want to borrow fast loans without fear. Since these apps are approved by the CBN, they don’t go out of conduct while offering their services to the public. However, these platforms have both advantages and disadvantages. They offer you easy access to loans, convenience, and speed, but may also have much higher interest rates, limited customer support, limited loan amounts, as well as limited transparency, which is a major limitation for borrowers. Nevertheless, these approved loan apps are still the best and easiest way to access loans whenever you need money urgently. As long as you can repay your loan in due time, there’s nothing to worry about.
