Best loan apps in Nigeria without collateral; If you’ve been pretty around, you’d sure understand that getting a quick loan in Nigeria used to be a challenge, considering banks demand collateral, guarantor or long paperwork to secure such loans.
However, the good news today is that technology has made the process pretty easier with loan apps in Nigeria that don’t require collateral.
With these apps, you are guaranteed to receive instant cash directly to your bank account without visiting any bank or providing any form of paperwork as security for such loan.
Looking for a loan? If this feels like you, this guide will take you through best loan apps in Nigeria without collateral, their features, interest rates, and their unique qualities.
About collateral
You probably do not understand the meaning or concept of collateral in a loan, I’ve got you covered about that.
Collateral is a form of security which a borrower is required to provide through which it’s expected that a loan is being secured.
Fundamentally, the bank or a credit institution holds onto the collateral having given loan, such collateral is usually worth over the value of facility being issued, such that in event you are not able to repay the loan, the collateral would be sold and the bank recovers its money.
Under such arrangement, any loan being backed by collateral is referred to a “secured loan.”
How collateral works
If a credit institution ABC intends to give out loan to a customer “Mr. Isaac Okoye,” and requires that the customer provides a collateral to back/secure the loan.
In this instance, Mr. Isaac may have a plot of land as a tangible asset which is usually required or any other specified asset.
The bank does its due diligence to ensure the land is located at a spot where it can be easily sold in event the loan goes bad, as well as such land is way over the amount the customer is looking to borrow.
Having done this, the loan application is approved and disbursed. If Mr. Isaac is able to repay on the due date, he’ll reclaim access to the property documents.
If on the contrary he struggles to repay, the bank finds a buyer, sell the land to reclaim the loan amount and interest, then return the balance to the customer.
That’s how collateral works in a loan.
Why choose best loan apps in Nigeria without collateral
Online loan apps in Nigeria approached the credit industry with a sole aim to distort the market through making loan access easier, swift and fast.
By this understanding, they didn’t only provide money solution, they made sure to break barrier by reaching the industry underserved market which are “Customers who cannot provide collateral.”
Thus; the advent of “Best loan apps in Nigeria without collateral.”
Some of the reasons you are looking to receive a loan without collateral include but are not limited to;
- Quick access to loans
- Flexibility
- No paperwork
- Convenience
Down sides to taking loans without collateral
You should understand that you cannot win all round, while you are looking to take out a loan without collateral, do understand it comes with a few body pains, these include but are not limited to;
A loan with no collateral will likely come with a high interest rate, be sure to compare these rates before borrowing so as to make informed choice.
While that’s being said, you must be careful not to miss your repayment day, some of these loan apps do not take it lightly, it may affect your credit score and hurt you subsequently.
Best loan apps in Nigeria without collateral
The below loan apps were carefully handpicked using the following metrics;
- Loan amount
- Tenure
- Interest rates and features.
| Loan app | Loan amount | Tenure | Interest rate | Features |
| FairMoney | N500k – N3,000,000 | 61 days – 18 months | 2% – 30% monthly | Loan disbursement is instant within 5 minutes, there’s a window for higher loan amount for returning customers |
| Carbon/Paylater | N1,500 – N1,000,000 | 1 – 12 months | 5% – 30% | Approval is fast without collateral, early repayment reduces interest rate |
| Branch | N2,000 – N500k | 4 weeks – 15 months | 17% – 40% APR | No hidden fees, as you pay on time loan increases |
| Palmcredit | N2,000 – N300k | 91 days – 365 days | 14% – 24% monthly | No paperwork, fast approval with flexible repayment plan |
| Quickcheck | N1,500 – N500k | 91 days – 12 months | 2% – 30% monthly | Uses AI for credit scoring and approval, transparent fees. |
| Okash | N3000 – N1,000,000 | 91 days to 365 days | 10% – 36% annually | Quick application process, ideal for salary earners, and small business owners. |
Loan apps in Nigeria with lowest interest rates
- Ease cash
- Umba
- Quickcheck
- Aella credit
- Newcredit
- Carbon
- Okash
- Palmcredit
- FairMoney
- Branch
What is interest rate for Aella credit?
The monthly interest rate for Aella ranges from 2% – 20% and APR from 22% – 264%
Loan apps without BVN in Nigeria
So you are looking to receive a loan without having to provide your BVN right, if this feels like you, here’s something for you to walk away with.
There are a few reasons you are looking to receive a loan without having to provide your BVN, this include but are not limited to any of the following;
- Privacy concerns, you don’t want to be known for some reasons
- You probably do not have a bank account
- You want speed in accessing a loan
- You probably are a first-time borrower.
Well, while this is an upside to it, there are a few body pains that come such loans just so you know what you are subscribing to.
- Such loans have high interest rates
- You are usually a loan amount lower than you may require
- There’s an undue loan recovery pressure in case you fail to meet up with the due date.
- Your information may be misused by some shady apps.
Now you understand what’s is in for you with such loans.
Here are loan apps without BVN;
- KashNow
- FairMoney usually for first time users
- KashZilla
- GoCash
- LendCash, etc,. are a just a few of them.
Be sure to carry out your due diligence before you decide to apply and receive such loan.
Conclusion
Best loan apps in Nigeria without collateral, the good news today is that technology has made loan process pretty easier with loan apps in Nigeria that don’t require collateral.
With these apps, you are guaranteed to receive instant cash directly to your bank account without visiting any bank or providing any form of paperwork as security for such loan.