Despite challenges surrounding their mode of operations, especially concerning debt recovery, loan apps or digital money lenders continue to play significant roles in the informal sector of the economy by providing quick and easy loans for Nigerians.
It is for this reason that the regulator, the Federal Competition and Consumer Protection Commission (FCCPC), has repeatedly stated it cannot ban loan apps, as many have been clamouring for.
The rate at which Nigerians continue to patronize these digital lenders is also an indication that many would be left stranded if loan apps were banned in the country.
Yet, amid the cacophony of complaints of harassment and defamation by loan apps, several platforms are doing business legitimately and still abiding by the ethical standards stipulated in the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending and Guidelines 2022 put in place by the FCCPC and the industry Joint Task Force comprising the Nigerian Communications Commission (NCC), Central Bank of Nigeria (CBN), and the Economic and Financial Crimes Commission (EFCC), among others.
While there are currently over 200 loan apps approved by the FCCPC, one sure way to rate these apps is by the experience of customers who have used them. This is often reflected in how these apps are rated on the app stores and the reviews provided by the users.
Bearing in mind that some apps are also on the Apple Store, this ranking is based only on Google Plays Store because most of the loan apps are not available on the Apple Store.
Here are the top 10 loan apps in Nigeria as of January 2024 based on their user ratings:
Xcrosscash is a loan app that lets the user activate their credit limit. It offers instant loans ranging between N10,000 and N50,000 with repayment plans from 91 days to 180 days.
The Xcrosscash app has been downloaded over 1 million times on the Google Play Store and, despite having one of the lowest loan ranges, it has one of the highest ratings from users, though it is the lowest among the top 10. The app is rated 4.0 by 32,846 users as of January 2024.
Renmoney is a microfinance bank that prides itself as Nigeria’s most convenient lending company with innovations that deliver outstanding service experiences.
They grant both personal and micro-business loans ranging from N50,000 to N6 million. With over 1 million downloads on the Google Play Store, customers have rated the app 4.1 out of 5. The company was rated by 22,687 users as of January this year.
Newcredit is one of the loan apps operated by Newedge Finance Limited. The app promises instant, collateral-free loans ranging from N10,000 to N300,000 with repayment plans of 91 to 365 days.
Newcredit says it uses Artificial Intelligence (AI) to analyze prospective customers’ financial records, including the bank transaction SMS on their phones and their creditworthiness from other lenders.
The app is one of the most downloaded loan apps in Nigeria with over 5 million downloads on the Google Play Store as of January this year. The Newcredit app was rated 4.1 by 65,763 users.
Palmcredit is a loan app in Nigeria also owned by Newedge Finance Limited. Through the app, Nigerians are getting instant loans without collateral. It is not surprising that the app is currently one of the most downloaded loan apps in Nigeria with over 10 million download records on Google Play Store. As of January this year, a total of 173,017 users had rated the app 4.2, a fair mark out of 5.
FairMoney is a digital bank focused on lending. The company provides instant loans of up to one million naira, as well as a bank account and a debit card.
According to the company, FairMoney processes over 10,000 loans every day, with one loan disbursed every eight seconds.
This is reflected in the fintech app on the Play Store as it is one of the loan apps that have crossed 10 million downloads. For the 587,808 users who had reviewed the app as of January 2024, a 4.2 out of 5 was considered appropriate for their experience.
Carbon is a CBN-licensed digital bank that also provides a loan facility and investment opportunities, in addition to usual digital banking features such as debit cards.
Accounts are enabled for P2P payments, as well as bill payments and mobile recharges. The app has been downloaded over 1 million times on the Google Play Store. As of January this year, 158,270 users had rated the app 4.3 based on their experience.
OKash is a convenient quick online loan platform for Nigerian mobile users managed by Blue Ridge Microfinance Bank Limited. OKash fulfils customers’ financial needs completely online 24/7.
The application process takes just a few steps with minimal documentation, and the approved loan amount is transferred to the applicant’s bank account.
The app offers loans ranging from N3,000 to N500,000, and the repayment plan ranges from 91 days to 365 days. With 198,000 users rating it, OKash has received over 5 million downloads.
The EasiMoni loan app is also operated by Blue Ridge Microfinance Bank, offering loans from N3,000 to N1 million.
The company states its interest rate is between 5% to 10% monthly, and loans are disbursed to customers based on their credit evaluation results. With over 5 million downloads on the Google Play Store, the app has been rated 4.5 by 222,145 users as of January this year.
Palmpay is a popular loan app in Nigeria and one of the few that have crossed 10 million downloads on the Google Play Store. The Palmpay fintech app was first released in September 2018, according to information on Google Play.
However, a pilot phase was launched in July 2019 after the company secured a mobile money operator license from the Central Bank of Nigeria (CBN). It officially became available to Nigerian users in November 2019. As one of the most-used loan apps, Palmpay’s review by 665,762 users culminated in a 4.5 rating for the app as of January 2024.
Branch is one of the leading loan apps in Nigeria with a presence in many other countries. As one of the most downloaded apps with over 10 million downloads on the Google Play Store, the Branch app has the highest number of reviews among all the loan apps in Nigeria and enjoys one of the highest ratings of 4.5 out of 5. The app was rated by 1.3 million users.
The app determines loan eligibility and personalized loan offers using users’ smartphone data.
Their interest rates range from 15% – 34%. Users can get access to loans from N1,000 to N200,000 within 24 hours, depending on their repayment history, with a repayment period of 4 to 40 weeks.
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