Recently, lending has become flexible with different fintech platforms revolutionizing the system from the old cumbersome way to customer-driven modern age technological solutions.
With technology, the former financial services institutions are now experiencing disruption with innovative digital services that are making the financial operation simple, convenient and accessible to the customers.
In Nigeria, lendtech is one of the major financial services that are redefining the financial sector with flexible loan offers to Nigerians both for personal demands and business operations and expansion.
TechBerg highlights the top 5 online lending apps that are giving Nigerians simple and quick access to loan with minimal criteria.
BRANCH
Branch offers loans from ₦1,000 to ₦500,000 with a range of 4 to 40 weeks. It is one of the most reliable platforms in Nigeria because of its mode of operations. The branch’s interest rate rages from 15% to 34% with an equivalent monthly interest of 3% to 21% and APR of 33% to 261%, depending on your loan option.
The borrower does not need collateral and would not pay late or rollover fees. Interest rates are determined by a number of factors, including lender’s repayment history and the cost of lending for Branch.
Branch has made it easy for Nigerians to access loan from anywhere in the country without physical engagement and collateral.
CARBON
Formally known as Paylater, Carbon has expanded its operations in Nigeria with easy and quick access to loan. The lending platform is an android-based quick loans and lending platform in Nigeria. Users will only be charged N100 validation fee when registering.
Carbon provides innovative financial services to the financially underserved mass retail segment. It’s a simple, digital finances management platform that provides instant loans to help cover unexpected expenses or urgent cash needs, payments of bills for different services, fund transfers, airtime purchases, and investments.
The interest rate ranges from 5% to 30% and loan tenure ranges from 15 days to 6 months. To can repay loans through your debit card, Quickteller platform or direct transfer from your bank account.
Apart from offering loan services to people, Carbon recently launched platforms that allow its customers to recharge airtime, funds transfers, and pay bills the app.
In 2018, it had processed ₦2 billion in transactions over 500,000 unique transactions, creating a lot of new business in a segment that did not exist for us a year ago.
In further expansion to include more people to the financial space, Carbon launched Payvest, a high-yield investment product that allows Carbon investors to earn interest rates of up to 15.5%, a leading return across the Nigerian financial system.
FAIRMONEY
FairMoney is a micro-lending platform that offers small loans from N1, 500 – to N1,000, 000 to Nigerians and it carries maturities of 1-3 months. The interest rate is 30% rate per month.
To determine who is fit to receive a loan, an algorithm allows the company to evaluate an individual’s creditworthiness using two parametres: financial data and alternative data.
With financial data, the algorithm evaluates the ability of the individual to repay what he has borrowed, how much is fit to lend to them, and with alternative data, the algorithm evaluates the readiness of the customer to repay.
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RENMONEY
Renmoney is a technology and finance company making financial inclusion count in Nigeria. It offers flexible convenient loans to meet the needs of small businesses, homes, buying a new car, paying rent, school fees, medical bills etc.
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This lendtech firm offers loans up to N6 million, which is the highest in the country.
You can repay loan conveniently over 12 months, and this flexible repayment pattern is specially designed to meet your needs. The firm also has investments platform with up to 17% per annum.
Downside
Its annual interest rate stands at 45.5%. This is high compared with Branch. Loan defaulters on the platform are penalised with additional charges.
Zedvance
Zedvance offers up to N5 million loans, and a flexible repayment period of up to 18 months. It provides financial needs to individual and businesses with a flexible and convenient service.
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The interest rate starts from 7.5% and loan tenure ranges from 1 month to 12 months. The company accept loan repayment through debit card, bank deposit or cheques.
Recommendation
The interest rate of the lendtech firms is relatively high; as such the concerned regulator should look into this in order to attract more low-income earners.
