As a student, you need a friendly loan app that understands the struggles and won’t put pressure on you to pay back. So, even if you default, there will either be a grace period or the penalty won’t be high.
The selected apps here are both FCCPC and CBN approved. They also have good reputations, even though no loan app in Nigeria is without headaches.
Here are 7 reliable, student-friendly loan apps you should use.
1. ALAT
ALAT is a property of Wema Bank and the best loan app out there for students. It is not a loan shark. The monthly interest rate is only 2%. If you fail to repay your debt on time, you can contact ALAT for a grace period—they will extend the deadline for you. However, ALAT might modify your interest rate to be a little higher.
ALAT takes credit history fairly seriously disbursing a quick loan. For students, it’s not a big deal. You’ll still get a reasonable amount. But if you owe other lenders and banks, you’ll only qualify for a small amount at a higher interest rate.
Ps. You don’t need to open a Wema Bank account to use ALAT. Just sign up on ALAT, and that’s all. Please see the sign-up procedure here.
2. Carbon
Carbon is also good, but it’s not without a small headache. The interest rate is 20 to 40%. As a student, expect around 25 to 30% if you have a good credit history. Carbon doesn’t care if you are a new or old customer.
An example loan with Carbon is that if you borrow 20,000, you will have to pay back 29,000 naira.
The problem with Carbon is that you won’t be allowed to choose the amount you need. You apply for a certain amount, say 10k, but then get a different amount disbursed to your account. The repayment tenure on Carbon is 3 months, i.e., up to 90 days, but it depends on the amount you borrow. If you qualify for a loan of 30k, you will have 3 months to pay back. The lower the amount, the lower the tenure.
The best part is that Carbon does not harass debtors. This doesn’t mean you should borrow if you won’t have the money to pay back.
3. Branch
College or university students can also get a loan from Branch loan app. The interest rate is 10 to 20%, depending on your credit history. Branch doesn’t consider if you are an existing or a new customer—both are treated the same. But Branch is stingy when it comes to loan amounts.
Branch loans aren’t typically instant. For some people, it takes hours and sometimes days. Also, even if you repay your loan early, there is no guarantee that your limit will be increased the next time you apply for a loan.
You are free to select your repayment tenure and the amount of money you borrow. The tenure is 1 month, 2 months, 3 months, and up to 1 year but your risk profile has to be really low to get more months.
Branch does not harass debtors. But don’t borrow if you won’t have the money to pay back. Branch even has a no-penalty grace period where you can pay back your loan outside the due date without fees. The only problem with Branch is poor customer service.
4. FairMoney
FairMoney loan is also good for Nigerian students. The interest rate is 20% and up to 40% depending on your credit history and the amount you want to borrow. As an example, if you borrow 6,000 naira, you’ll have to pay back 7,782 naira in 28 days, the same as saying 30 days.
The problem with FairMoney is that they call customers multiple times to advertise their loan loan app. They also call borrowers like 5 to 7 days before the due date of their loan. Otherwise, it’s a very friendly loan app for students.
5. Okash
You can also borrow money from Okash. The interest rate is high at 40 to 50%. The major problem with Okash is that they randomly call customers to advertise loan coupons, even if you have not borrowed money from them.
As an example, if you borrow 10,000, you have to pay back 15k.
Another problem is that Okash does not allow you to choose how much you want to borrow. You might apply for a certain amount, but then get something different. But whatever amount you receive, you have 30 days of tenure and not 7 days to pay back.
If you default on your loan, you will pay a daily penalty fee. Okash doesn’t have a grace period.
How long it takes for Okash to disburse a loan is different for different people, but their disbursement is usually fast.
The part you won’t like about Okash is that they call defaulters. If you owe, expect a phone call from one of its customer agents. These agents can be rude as well. If you need to know more about Okash, read this article.
6. Aella
Aella loan charges 30% in loan interest, and you have more than 7 days to pay back what you borrow. There is no guarantee that you’ll be given this loan after submitting your BVN, NIN, etc.
The duration is different for different accounts, some more than 3 months. It’ll read that your account is verified but the review is still in progress. So, basically, you might be stuck with the upgrade.
Unfortunately, Aella loan doesn’t provide customer support by phone or in person. You can only contact them via email or through the in-app chat, but the customer support is very poor.
7. VibeCash
VibeCash used to be Credit Pro loan app but the name was changed to VibeCash. If you have used Credit Pro in the past, then it’s VibeCash now. Credit Pro is one of the apps under the FCCPC watchlist.
VibeCash is our number 7 because it has a high interest rate of more than 40% and up to 90%. You have only 7 days to pay back what you borrow from this app. For example, if you borrow 7k, the app will ask you to pay back 11k In 7 days.
Another problem with VibeCash is that the loan amount on your dashboard will be different from what they credit to your account. You might see 50k on your dashboard, only to be credited with 12k.
Sometimes, an agent from VibeCash or Powerkash may send you a message about repaying the money, even before the due date.
There is no guarantee that you’ll be given this loan after submitting your BVN, NIN, etc. VibeCash is also bad in terms of customer service and borrower harassment—some of the agents are typically very rude. Otherwise, it’s an okay loan app for students.
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