8 Best Student Loan Apps in Nigeria
Are you looking for the best student loan apps in Nigeria where you can get quick loans without collateral?
In this article, we will show you the best student loan apps and how you can borrow from them with ease.
The apps listed in this article are best suited for students who need some money to complete their school fees. You can loan from 10,000 to 200,000 Naira with these apps.
What are Student Loans?
Student loans are loans given to students in tertiary institutions to pay their school fees, buy books or for feeding expenses.
In Nigeria, the government does not have a system to give loans to students. However, if you are a brilliant student, you can apply for scholarships sponsored by the Federal government.
There are financial technology (fintech) companies in Nigeria that offer personal loans; students who meet the criteria are eligible to get loans from these companies.
Some of the characteristics of student loans in Nigeria are;
The interest rates on students loans are higher
Student loans are risky for fintech companies. When you get a student loan, most times, you are not asked to bring collateral. Due to the high risks involved with student loans, loan companies charge high-interest rates.
Shorter Repayment Period
Student loans have short repayment periods. In Nigeria, you will hardly see a loan company that gives more than 12 months to repay a student loan.
If your student loan is approved, you should be ready to pay it back within 3 to 6 months.
Lower amounts due to risk
Most companies that give out student loans grade you based on your performance with other loan companies, your history with them or the details you submitted during registration.
Armed with the information they have about you, they calculate a loan offer that they think will be easy for you to repay.
As a student in Nigeria, it is likely that you do not have a source of income. In order to curtail the risk associated with offering loans to students, fintech companies give small amounts.
Best Student Loan Apps in Nigeria
1. Carbon
Carbon formerly known as Paylater is the first loan company to take a giant leap into the Nigerian personal loan space.
After operating for 3 years under the name Paylater, One Finance rebranded Paylater to Carbon in 2019.
Carbon is not just a loan company. The Carbon app lets you save or invest money, pay bills, and transfer money to other banks.
When you register on the Carbon app, you have to fill in details of your BVN, place of work, marital status, address, etc.
These details are used by the algorithm to calculate a loan offer for you.
Most times, the initial amount given to new users is 10,000 Naira. As you borrow and repay your loans on time, Carbon will keep increasing how much it can loan you.
2. Fair Money
Fairmoney is an online lender that gives out instant loans and offers bill payment services. The Fairmoney mobile app is only available on the Google play store.
Fairmoney is a Nigerian-based loan platform with keen eyes on emerging markets. In August 2020, Fairmoney was launched in India. After its Indian launch, the company claims to have processed over half a million loan applications for more than 100,000 users.
On Fairmoney, you can get longer repayment periods of up to 12 months; the length of the repayment plan depends on the amount of loan you are given.
3. Branch
Branch is an international loan company with its headquarters in San Francisco. Branch International offers its loan services to customers in Nigeria, Kenya, Tanzania and India.
The Branch loan app is also only available to Android users.
When Branch began operations in Nigeria, it only supported a few banks. Over the years, Branch has increased the number of Banks it supports in Nigeria.
You can create a Branch account with your phone number, Facebook account and BVN.
Branch is a bit strict with giving out loans. After applying, you have to wait for a while to know if your loan application was approved or not.
4. Palm Credit
Newedge Finance owns Palcredit limited, the same company behind Easybuy. Palmcredit gives loan offers from 2,000 Naira to 300,000 Naira within a repayment period of 3-12 months.
As of the time of publishing this article, Palmcredit has over one million downloads on the Google play store with 80,000 plus reviews.
Once you download the Palmcredit app, you will be required to enter your work information, personal information, a next of kin name and any other person. On completing the registration process, you have to wait for your account to be reviewed.
Palmcredit uses the information provided to consider the amount you are eligible for.
5. Migo Loan
Migo is another San Francisco-based loan company that operates in Nigeria and Brazil. Formerly known as Kwikmoney and Kwikcash, the company rebranded to Migo in December 2019 to facilitate its international branding.
Migo serves end-users, loan companies, banks and merchants. Did you know that you can start a loan company and partner with Migo loan to access credit facilities?
For individuals who want a loan, you can visit the Migo website, enter your phone number, and confirm by entering the OTP you received then get a loan offer immediately.
6. OKash Loan
Okash is a fintech product from Blue Ridge Microfinance Bank. Okash was part of the Opay app due to a partnership between Blue Ridge Microfinance bank and Paycom Nigeria limited, the owners of the Opay app.
After receiving heavy backlash from users in 2020 because of its lending policies, Okash was disbanded from the Opay app to become a standalone product.
Okash claims that it gives loans from 3,000 Naira to 500,000 Naira with a repayment tenure of 91-365 days.
7. Zenith Bank Eazy Loan
As a Zenith Bank customer, you have access to the Zenith Bank Eazy loan service. The loan feature from Zenith Bank allows you to borrow and pay back within 30 days. The interest rate on the Zenith Bank Eazy loan is 3%.
To get this loan, you must use your Zenith Bank account to perform lots of transactions.
8. Access Bank PayDay Loan
Access Bank payday loan is a loan service from Access bank that is available to both salary earners and non-salary earners with an Access bank account. You can loan as high as 100,000 Naira and repay with a 3% interest within 30 days.
You can apply for this loan by dialling *901*11*1# on your phone number registered with the bank to see if you are eligible for this service. If you qualify, you will see the amount of loan that you can access.
Access Bank does not require collateral or a guarantor for the Payday loan service.
Tips you Should Consider
As a student in Nigeria, your chance of getting a student loan are slim but you can increase your chances by following the tips below;
Tell your Parents/Guardian First
Before you take loans, you need to inform your parents or guardian first. Not all parents are comfortable with loans. If they agree, tell them how much you are required to pay back and the deadline for payment.
Do not collect a student load if your parents or guardian do not allow it.
Stick to One Bank/App
Fintech companies and banks give loans based on the volume of transactions you do with your account. Instead of opening several bank accounts, maintain one and run all your financial transactions through that account.
Apart from giving out loans, Carbon lets you receive money from any bank account in Nigeria, buy airtime, pay bills and transfer to other banks.
You can open a Carbon account and do all your transactions there. This will improve your ratings with Carbon and increase your chances of getting a student loan through them.
Last Option
Taking a loan to pay your school fee as a full-time student should be the last option after you have tried other means. Try to communicate with your parents, guardians or family members before you resort to taking loans.
Repay on Time
When you are given a loan, always repay within the stipulated time. If you do not pay on time, banks and fintech platforms will report you to the credit rating agencies in Nigeria. This would spoil your ratings and affect your ability to take loans and credits in the future.
Apply for Scholarships
If you find yourself always struggling to pay for your school fee, you should consider applying for scholarships.
There are scholarships in Nigeria where students get paid 100,000 Naira every year. This will go a long way to paying your bills in school.
Thank you for reading our article on the best student loan apps in Nigeria. You can also read out article on business ideas for part-time students in Nigeria.
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