Loan Apps in Nigeria That Don't Require BVN in 2024

There are some concerns about sharing your BVN (Bank Verification Number) but it’s not unsafe when you do. However, it can reveal some personal information about you since it is your financial ID card. This is why some Nigerians prefer to borrow money from lenders who do not require their BVN. If you are this person, you really don’t need loan apps in Nigeria that don’t require BVN. In fact, it’s a marketing gimmick that some loan apps use to attract you to download their app. In the end, they will still ask for your BVN.

No legit loan app will disburse a loan without your BVN. They need this information to know the person borrowing from them, including some of your financial information. It is also legal for a loan app to ask for your BVN.

What is BVN in Nigeria?

Your BVN is your financial identification, and it is unique to everyone. This ID is used in the Nigerian Banking industry to identify and verify at Point of Banking operations. The Central Bank of Nigeria introduced this unique number to help manage identification, alongside any challenges banks and other financial institutions have been facing.

It’s very okay for a loan app to ask for this ID to help them know who you are. You just have to make sure you trust the loan app you are dealing with. Of course, if you give your BVN to a fake loan app, they can use your information for fraud.

Loan Apps in Nigeria That Don’t Require BVN

Unfortunately, no legit loan app will give you a loan without your BVN. Those loan shark apps that promise not to require your BVN only use such ads to get you to download their app. While requesting a loan, they will still ask for your BVN, NIN or other forms of ID (like drivers license, ID card, etc.), and others.

You’ll also come across websites and even YouTube videos listing loan apps that will not ask for your BVN. The truth is that such publishers do not do their research well. If you go through the list, you’ll find out that those loan apps they mention still ask for your BVN.

Even if an app does not require your BVN, they can still collect other forms of personal information for KYC (know your customer), which is legal. When you install a loan app, and give it access to your phone contact, SMS, gallery, etc., it will access all the information and collect the records about you. So, they still have your personal and bank information in one way or the other. No loan legit app will disburse a loan if they don’t know who you are.

Is It Safe to Give Your BVN to a Loan App?

Yes, it’s perfectly safe to give your BVN to a loan app as long as you trust that app. The only concern should be what the lender can do with your personal information, including your name, facial image, and other personal information. A loan app can’t use your BVN to remove money from your bank account. The information you should be mostly worried about is your credit or debit card details you enter in their app for the card binding and loan disbursement. This is because you have authorized the loan app to take money from your bank through your card whenever it’s time to pay back. A fraudulent loan app could still take money from your account ‘whenever they feel like’.

Another thing you should be concerned about instead of your BVN is the access you grant a loan app on your device. For example, if you allow the app to access your contact, it will collect all information about your contact (names and phone numbers). If you give it permission to access your SMS, it will be able to read any message you receive, including your personal and bank messages. These are the information you should worry about the most and not your BVN.

How to Get a BVN

What if you don’t have a BVN at all? You can get one, and it’s very easy right now.

Go to an enrollment center such as a bank near you.
You will be given a form to fill out. Some Nigerian banks provide the application form on their website, which you can fill and submit to them. However, it’s even faster to visit the bank and obtain this form.
Submit the form.
Complete the Biometrics in person at the bank.
Receive Ticket ID.

That’s all. Within a few minutes or hours, the bank will send the BVN to your registered phone number via SMS.

Alternative Loan Apps You Should Install

Now that you know that legit loan apps require your BVN, below are the best loan apps you can confidently give your BVN and request a loan.

1. Carbon Loan App

Carbon app is an app by Carbon Microfinance Bank licensed by both the FCCPC (Federal Competition and Consumer Protection Commission) and the CBN (Central Bank of Nigeria). It has a ‘full’ FCCPC approval license. You can verify the CBN license here.

Usually, Carbon gives a loan starting from 2,500 to 1,000,000 naira. You have to pay back between 61 days and 12 months at monthly interest rates of 4.5% to 30%. Whenever you pay back your old loan, it increases the amount you can borrow again.

Carbon is not a perfect loan app—they also have problems. For example, the customer service is not responsive and the Carbon loan app has bugs that can sometimes make your loan application frustrating.

2. FairMoney

FairMoney app is an app by Fairmoney MFB LTD licensed by both the FCCPC and the CBN. It has a ‘full’ FCCPC approval license. You can obtain a loan of up to NGN 3 million, but there is no guarantee that FairMoney will qualify you for this amount on the first application. FairMoney’s interest rate on loans can be as high as 20% but better than the rate you’ll get from loan sharks like Irorun and OmegaLoan. They also have a reputation for contacting borrowers before the due date of their loan.

3. Palmcredit

Had there been a better option, we wouldn’t even consider Palmcredit because of its unfriendly characteristics, such as high interest rate and poor customer service. Palmcredit is listed by the FCCPC but does not have a full license; what it has is a ‘Waiver’ licensed by the CBN. This app is listed as ‘Palm Credit’. This lender promises loans from 10,000 to 300,000 naira to be paid back within 91 days and 365 days. Unfortunately, this is a false ad because Palmcredit typically lends from 5,000 and gives 28 days to pay back the loan depending on the amount.

The interest rate is also high, for example, if you borrow 47,000 naira, you are to pay back 59,000 naira. Palmcredit also charges a 50 naira fee for binding your bank account to their app without guaranteeing a loan.

The best, headache-free app for loan is always your bank. Unfortunately, most local banks don’t typically give instant loans, compared to loan sharks. Local digital banks also charge lower interest rates. An example is ALAT by Wema Bank.

Conclusion

If you need an instant loan, you’ll need your BVN. Unfortunately, legit loan apps won’t give you a loan without a BVN. They even need your NIN as well to be able to report your credit accurately and easily track you.