Money Lenders in Nigeria: With the rise of many players in Nigeria’s finance industry, there are few lending platforms that help business owners with quick loans for their business. This article gives information about the Top 10 Money Lenders in Nigeria, read through carefully for current updates.
Loans play an important role in stimulating the Nigerian economy due to the relatively under-developed capital markets. Loans from traditional lenders are constrained for low income and self-employed consumers due to high-interest rates, short loan maturities, strict documentation requirements, and the inability to provide collateral.
While most of these platforms claim to offer quick loans without any collateral, it is advisable to carefully study their Terms & Conditions (T&C) before throwing in an application.
Another factor to consider is the interest rate and payback period. As a business, you will not want to go in for loans with a very short payback period except you very sure you will earn back the money in no-time.
What is a Loan?
A loan is when you receive money from a friend, bank, or financial institution in exchange for future repayment of the principal, plus interest. The principal is the amount you borrowed, and the interest is the amount charged for receiving the loan.
Since lenders are taking a risk that you may not repay the loan, they have to offset that risk by charging a fee – known as interest. Loans typically are secured or unsecured. A secured loan involves pledging an asset (such as a car, boat, or house) as collateral for the loan.
Money Lenders in Nigeria
Most often, many small businesses may require extra funding or capital in terms of business loans to expand or keep the business going. When all other means of raising fund for your business has been exhausted, the best alternative is to consider getting a business loan.
But many small business owners view the lending process as complicated and frustrating especially when approaching Banks for such finance. If the borrower defaults or doesn’t pay back the loan, the lender takes possession of the asset.
An unsecured loan option is preferred, but not as common. If the borrower doesn’t pay back the unsecured loan, the lender doesn’t have the right to take anything in return.
READ ALSO: Best Quick Online Loans in Nigeria Without Collateral for 2021
1. KiaKia
KiaKia is a moneylender that provides direct personal loans at flexible rates, and also match borrowers with individual or corporate lenders at mutually-agreed rates. They offer loans from N10,000 and N200,000 for a minimum duration of 7 days and a maximum of 30 days.
Responsible borrowers who earn financial responsibility trust points over a period of time will be able to access much bigger amounts at longer tenure and more flexible interest rates.
Kiakia’s services are best for anyone looking for an unsecured personal consumer loan, an individual’s ineligible for a typical bank or credit union loans, and those facing financial hardship.
2. Page Financials
Page Financials is an innovative retail financial institution offering various quick personal and salary advance loans to meet the financial request of customers.
On-Page Financial, it takes six steps to request a loan and the first one is inputting your BVN details. For its loan, Page Financials offers a daily rate of 0.5% which accrues on its Debit card issuance also known as Pledge Finance.
Pledge Finance debit card is a preloaded with up to N500,000 depending on your net monthly income. The company also charges a one-off fee of N1,500 for the card valid for a period of 3 years.
3. Chase Microfinance Bank
Chase Microfinance Bank is a CBN licensed institution offering loans for multiple purposes in Nigeria. This is for entrepreneurs, traders and students to access for existing businesses.
Microlending is the provision of financial services for people who don’t have access to traditional financial services such as banks. The loans are aimed at individuals who were previously considered “unbankable” by larger banking institutions.
These are borrowers who are possibly dealing in small amounts of money each day, living in hard-to-access areas, without credit histories or who don’t meet “traditional requirements” within the banking sector.
4. Cedar Microfinance Bank
Cedar Microfinance Bank is a CBN licensed institution offering loans for multiple purposes in Nigeria. Cedar Microfinance Bank group-based loans are loan facilities designed for micro-enterprise operators, who do not have conventional collateral.
These are up to ₦200,000 and have a short tenor. To supplement collateral requirements, the loans are secured partly by cash and partly by group guarantees. To access these types of loans one has to be a member of registered and unregistered groups of 5-30 members.
Group lending is where individuals borrow in the group by use of a co-guarantee mechanism and any other appropriate securities accepted by the bank.
5. Paylater
Paylater is a quick online lending platform that offers short term loans without collateral for urgent needs and expenses. Through Paylater, you can get a loan from N500,000 to N1 million at different interest rates between 5 to 12.6%. The loan is determined by the risk involved and cash activities via your BVN.
When I checked out the Paylater app, I applied for a loan of N70,000, the system automatically generated N68,500 (meaning some charges of about N2,000 have been incurred). The system also pegged interest rates at 12% monthly for a four-month repayment plan at N25,345 per month.
6. Rosabon Finance Quick Loan
Rosabon finance is one of the fastest and easiest ways to access a personal loan in Nigeria without collateral. On the Rosabon platform, a loan of N70,000 for interest attracts a 4-month repayment of N82,915. That’s about between 4 to 6% per month.
Some of the requirements for getting a quick cash loan from Rosabon finance include being in paid employment, between 21 and 58 years, have a salary account, have a pension account or tax ID, have a valid Proof of Identification, and a recent utility bill.
7. Credit Direct
Credit Direct is an online moneylender that provides Payrol
l based consumer loans to eligible individuals through their employer. The amount borrowed is then deducted from your monthly salary.
Their minimum loan amount is N100,000 and the upper limit for a new customer is N2,500,000. The size of the loan and interest rate charged is determined by data provided by your employers such as salary, length of service, and position.
The loan can be up to 50% of your Monthly Salary and the loan tenor is from 3 months to 6 months. Once you decide on the amount you want and you have set up your repayment schedule money is sent to your salary bank account instantly.
8. Pennylender
Pennylender is an online moneylender that provides single payment loans, installment loans, and payroll loans for borrowers through their employer. The amount borrowed is then deducted from your monthly salary.
Their minimum loan amount is N10,000 and the upper limit for a new customer is N500,000. The size of the loan and interest rate charged is determined by data provided by your employers such as salary, length of service, and position.
The loan can be up to 50% of your Monthly Salary and the loan tenor is from 3 months to 6 months. Once you decide on the amount you want and you have set up your repayment schedule money is sent to your salary bank account instantly.
9. Kwikmoney (Mines)
Kwikmoney offers both internet-based, app, and USSD loan options. It partners with banks, mobile network operators, and technology companies on a mission to make personal banking services convenient and accessible to all Nigerians.
On kwikmoney, you can get a loan as high as N15,000 at a 15% interest rate for 15 days (half a month).
10. Renmoney
Renmoneycustomers can get loans up to N4,000,000 that can be repaid within a period of nine months without tendering collateral or a guarantor.
To apply for a loan on Renmoney, you’ll have to meet certain conditions. Applicants are expected to be between the age of 22-59, have a steady source of income with a functional current or savings bank account and a valid means of identification.
Upon request, the applicant is expected to provide verification of their monthly income and a report of their previous loans from a credit bureau. All these are to be submitted to any Renmoney office for confirmation.
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StudentsandScholarship Team.
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