online loans in nigeria


According to the Central Bank of Nigeria (CBN), Microfinance banks are companies licensed by the CBN to carry on the business of providing financial services such as savings and deposits, loans, domestic funds transfer, and non financial services to microfinance clients. The smallness of the loans or financial services rendered is what differentiates microfinance banks from the regular or bigger banks.

What are Microfinance Bank Loans?

Microfinance bank loans, on the other hand, are small loans granted to micro enterprises or individuals by microfinance banks based on the borrower’s cashflow. Important to note the keyword – borrower’s cashflow. Microfinance loans usually are based on the cashflow and the ability of the borrower to pay back.

Information available on the CBN website, as at 2022, shows that there are over 900 registered microfinance banks in Nigeria licensed to carry on the provision of small and micro financial services to small, micro businesses and individuals.

Some Prominent Microfinance Banks in Nigeria

Some of the bigger microfinance banks in Nigeria include;

Kuda Microfinance Bank

LAPO Microfinance Bank

ACCION Microfinance Bank

Assets Microfinance Bank

Mutual Trust Microfinance Bank

Fina Trust Microfinance Bank

VFD Microfinance Bank

Sparkle Microfinance Bank

BoI Microfinance Bank

If you are looking for a comprehensive list of microfinance banks licensed to operate in Nigeria you can check out the CBN’s list of microfinance banks.

Online Loans in Nigeria

Online lending in Nigeria has certainly passed its infancy stage and is now steadily on the rise with may players joining in the past few years.

In 2023  the Federal Competition and Consumer Protection Commission approved 173 loan apps and barred several other illegal ones. 119 of these 173 loan apps had full approval while the rest had conditional approvals. So this is certainly a competitive market/industry.

Some would argue that what gave rise to online loan apps is majorly due to the inability of the major commercial banks to provide easy, affordable loan products to their customers. This significant gap in the market is now being filled by lots of loan apps, a significant portion of which is provided by microfinance banks.

Microfinance Banks that Offer Instant Loans online

While we may not be able to give an exhaustive list of all microfinance bank loans in Nigeria we will highlight the major ones.

  1. Accion Microfinance: Accion offers quick online loans through its web and mobile apps up to N150,000.
  2. FairMoney: FairMoney Microfinance bank has a pretty decent mobile app through which customers/users can access loans. Customers can access personal loans of between N1,500 – N5m according to the information on their website. The FairMoney loan app is available on Playstore.
  3. Renmoney Microfinance Bank: Renmoney, with apps on both the playstore and the apple store, provides personal and business loans. For personal loans it says borrowers can borrow up to N6m while it can lend up to N15m for business loans with up to 24 months tenure
  4. Carbon Microfinance Bank: Carbon is one of the well known online lenders and changed its name from the previous – Paylater. Now a microfinance bank offering an array of financial services, online loans remain a key part of its offerings. It offers personal and SME loans. For it’s personal loans it can give the borrower up to N1m. For its’ business loan it may give up to N20m for borrowing businesses that meet its requirements.
  5. Primera Microfinance Bank: Primera is another microfinance bank that offers customers the opportunity to apply for and access loans through online channels. They provide payroll loans, small business loans, and agric loans.
  6. CIT Microfinance Bank: CIT microfinance bank offers personal and business loans through its online channels (app and website). Their loans include the CIT Instant cash, CIT salary advance, CIT SME loan etc.
  7. Mutual Trust Microfinance Bank: Mutual Trust has its mobile app available on the playstore and offers online loans eg the 10 hour prompt loan (for federal civil servants), and Mutual plus loans (for private sector employees).
  8. VFD Microfinance Bank: VFD through its Vbank mobile app (available on the App store and Playstore) offers loans to salary earners and entrepreneurs.
  9. AB Microfinance Bank: The bank offers micro loans and SME loans via its internet banking channels. Customers/users can request/apply for loan on their website or through the mobile app (on playstore and app store).

These are some of the microfinance banks that offer instant online loans (either through their apps or via their websites).

Whether you need a personal loan to tide you over some rough times or a business loan to invest in and grow your business income, it is never easy to come across loans from commercial banks without being asked for collateral that is worth at least the amount of loan you are asking for.

So asking for and getting a loan from the big banks is not always easy and possible.

So what are the options for someone who wants to get a cheap loan (one that does not have high interest rates) in Nigeria?

We researched and came up with several sources, websites and apps where you can easily apply for and get a loan ranging from a few thousands to hundreds of thousands (or even millions) of Naira.

Here are Apps, Websites and Places Where You Can Get up to N1 million Loan Without Collateral

1. Lidya

Lidya provides business loans and support to small business owners. You can also get personal loans from Lidya. You first create an account, link your bank account and apply for a loan. Lidya analyses your bank account transactions in 24 hours to come up with the appropriate amount you can borrow.

You can register and apply for loans at Lidya here – https://www.lidya.info/ng/en/home/

2. GTBank QuickCredit

If you have a GTBank account and use the GTWorld app you can qualify for a quick credit loan after 6 months. Quick Credit analyses your transaction and inflow to your GTbank account to determine how much you can get in loans from your GTWorld app.

Depending on your bank account transaction volume you can qualify to take up to N500,000 loan from Quickcredit via your GTWorld app.

3. Aella Credit

On Aellacredit you can get up to N1 million loan without collateral. With Aella Credit you simply create an account, answer some questions to check your eligibility and then apply for loan. You can build up your credibility by starting with the low loan amount and you get your limit increased as you repay your loan on time.

4. Payhippo

Payhippo focuses on providing fast, seamless loans to small businesses. Applicants can download the Payhippo app, register and apply for loans.

Payhippos claims to use Artificial intelligence to analyse data and show you how much you can borrow for your small business

5. Branch

Branch is a personal finance and loan app where individuals can apply for loans without physical presentation of documents.

Branch is touted as one of the best loan apps in the country. Applicants download the app, create account and apply for loans which are reviewed based on available data provided.

6. FCMB Fastcash Loan

The First City Monument Bank (FCMB) FastCash loan enables an individual get up to N200,000 loan without collateral and paperwork.

If you have an FCMB account you apply for a loan through the mobile app or through the short code – *329*11#.

7. WEMA Bank Salary Loans

If you are a confirmed salary earner and have a Wema bank account you can qualify to apply for a salary loan from the bank.

You can apply for up to 7 x your net salary or a maximum N2 million.

After application and review the loan is usually disbursed within 48 hours.

8. Access Bank Payday Loan

If you have an access bank account and use the Access bank app you can check if you qualify for a loan.

You stand greater chances if you use your access bank account to receive salary payments.

You simply open the Access bank (Access More) app. Click on Instant Loans to see if you qualify.

You will see eligible loan amount, if you do. Interest is 4% payable in 31 days.

9. Lendigo

Lendigo gives loans to small business owners such as ecommerce merchants, POS agents, distributors and other small businesses.

As a first time applicant you could get a loan of N100,000 if you qualify. You can download and apply for loan through the Lendigo app.

10. Carbon

Carbon is a fintech app that enables you take a loan to be repaid between 15 days – 6 months.

Through the Carbon loan app you can take a loan of between N7,500 – N1 million at various interest rates depending on your credit rating.