Considering the current state of the Nigerian economy, it is not unusual for people to run into financial difficulties, thereby forcing them to sake out ways to get quick soft loans to sort their problems. In the past few years there has been a surge in the number of soft loan apps in Nigeria, each of them offering short term loans to customers who are in urgent need of cash. Below is a brief review of five of these soft loan apps;
Initially called Paylater, Carbon is one of the first soft loan apps in Nigeria. Founded by Chijioke Dozie and Ngozi Dozie, the company employs over 90 individuals and does business not just in Nigeria, but in Kenya and Ghana.
One thing that strikes Carbon out from the rest is that it is not just a lending platform but offers investment options to its customers through it Payvest platform (cash vault), where you can lock up funds for period of 3-12 months and get up to 11% interest. It also offers a wallet option where customers can save funds in their virtual wallets and get interest. Customers can also open a Carbon bank account from their phone or computer.
Carbon offers loan to customers at 30% interest rate and do not add late fees.
Just like Carbon, Fairmoney has also been in operation for quite a while and according to its website has offered over 2.5 million loans to customers. It has offices in Lagos, Nigeria and in Paris, France. Their interest rate varies depending on customer’s profile and credit rating, it can be anywhere between 10-30%
One pro of Fairmoney is that if you pay back your loan before the due date, you are entitled to a discount compared to when you pay on the due date. Fairmoney also offers its customers higher loans compared to most other platforms where the rate of growth is slower.
One major disadvantage of Fairmoney is the addition of a daily late fee of 1.5%. Also, compared to platforms like Migo which allows borrowers to extend their due date for a small fee, Fairmoney does not allow for us.
Branch is another soft loan app with an enviable track record. Since its founding it has offered more than 15million loans to more than 3 million customers to the tune of more than 350million dollars. Compared to home grown Fintech companies such as Carbon, Branch is a foreign-owned business. Aside from Nigeria, it has presence in India, Kenya, and Tanzania.
Branch offers loan of between #1,000-#200,000 at a monthly interest of between 3%-21%. Branch has one of the best interest rate in the market, and compared to platforms such as Fairmoney or Quickcheck that include late fees, Branch has no late or rollover fees.
Also, just like Carbon, Branch offers an investment option for customers.
Quickcheck is a Nigerian Fintech company that aim to provide banking services to the underserved and help Entrepreneurs have easy access finance. Quickcheck loan ranges between 1,500-500,000 with interest rate of between 5%-30%. Customers are allowed to choose their repayment tenure, which can anywhere between 1-6months.
Quickcheck offers services to only Nigerians with Android phones. Another major con is the addition of daily late fees.
- Aella Credit:
Launched in 2016, Aella Credit has more than a million subscribers and has offered over a million loans. It offer loans of between #1,000-#1,000,000 at an interest rate of between 6%-20% at a tenor of between 1-3 months. Just like Carbon and Branch, customers does not incur late or rollover penalty fees with Aella loans.
Just like Carbon and Branch, Aella also offer investment options to its customers, allowing them to earn up to 26% per annum with a minimum investment of #100,000. With Carbon you can invest with virtually any amount.