Why Carbon Loan is Legit But Not Reliable [Review]

A good lender should have a good reputation. The interest rate should also be reasonable and the loan term long enough for a borrower. Unfortunately, many instant loan apps in Nigeria do not fulfill such criteria. In this review, we will scrutinize Carbon loan to see if this app is legit or a scam, and if it meets the criteria.

Carbon loan is owned by Carbon Microfinance Bank Limited. Formerly called Paylater. It is a licensed Microfinance Bank (MFB) by the CBN (Central Bank of Nigeria) fully approved by the FCCPC (Federal Competition and Consumer Protection Commission). The address is Plot 642C Akin Adesola St. Lagos. The website of this loan app is getcarbon.co.

Is Carbon Loan Legit App?

Carbon is licensed by the CBN and fully approved by the FCCPC. The major problem with Carbon is that it doesn’t focus on instant loans. As an MFB, it offers bank-type services such as making payments, debit card services, and savings.

The interest rate is average, typically 20 to 40%, which isn’t bad considering that many loan apps charge between 50 and 100%. This rate can go up if you do not have a good credit history. Therefore, the rate is not the same for different borrowers since it is calculated based on your creditworthiness. Carbon doesn’t also seem to consider the new customer or old customer syndrome. An example is that if you borrow 20,000, you will have to pay back 29,000 naira.

Another Carbon problem is that they sometimes don’t allow people to choose the amount they need. You might apply for a certain amount, but then get something different. That’s more like forcing a loan offer, including the repayment plan on a borrower.

As for how long it takes for Carbon to disburse a loan, it’s different for different people. Yours might be instant, but another person’s application might take longer. Sometimes, even after approving a loan instantly, Carbon has a glitch of failing to disburse the loan. You will have to contact customer support to notify them about this issue.

The repayment tenure depends on the amount of money you borrow. The typical Carbon repayment term you can get is 3 months, i.e., 90 days. For example, if you take a loan of 30k, you will have 3 months to repay.

This is the part you will like. Carbon does not harass debtors. This doesn’t mean you should borrow from them if you won’t have the money for your repayment.

Let’s say you have borrowed successfully. Carbon doesn’t seem to consider your repayment history or even the level of your account. For instance, even after upgrading to Level 3, you might still be offered as low as 5,000 naira.

How Does Carbon Loan Work?

Carbon has a loan limit of 2,500 naira and up to 1 million naira. The higher your credit score, the more money you can qualify for. When borrowing in the app, your Repayment amount will be shown to you.

As we said earlier, your loan amount determines the loan term, but the duration you will usually get is 3 months. Your credit profile also determines the amount of money you can get. Carbon won’t just lend you 1 million naira simply because it’s their promise. Unfortunately, the more money you borrow from Carbon does not mean your next loan will be higher. It could become smaller or nothing at all despite not owing.

How to Use Carbon App

  1. Download the Carbon app from the Google Play Store or Apple App Store
  2. Open an account with your personal and bank information
  3. Submit your registration information
  4. Apply for a loan

If your loan is approved, the money will be credited to your bank account. As for the eligibility, you have to be at least 18 years old.

Pros and Cons


  • Available on Google Play Store and Apple App Store
  • Licensed by the CBN as a Microfinance Bank
  • Fully approved by the FCCPC
  • Has a CAC (Corporate Affairs Commission) profile
  • It is NDIC (Nigeria Deposit Insurance Corporation) insured
  • Does not harass borrowers who default


  • Doesn’t focus on loans only
  • Loan disbursement is typically not instant
  • Does not have a web app, so you have to install the app to access loans

Is Your Personal and Bank Data Safe with Carbon?

Carbon Microfinance Bank Limited has not had complaints about customer data abuse. They don’t also call borrowers’ contacts or digitally harass customers who default. You can trust this loan app with your personal and bank information.

Personal information collected by Carbon may include your name, age, email address, phone number, personal description, selfie, username, NIN, and home address (such as utility bill). Bank information collected by Carbon includes BVN (bank verification number), debit/credit card number, and bank account number.

When you install the Carbon app, information collected from your device, either with your permission or no permission, includes your installed apps, device ID, device type, IMEI, GPS information, device operating system, IP address, personal contact numbers, call logs, SMS logs, Facebook friends and other social media accounts, photos, and videos or other digital content.


Not the easiest loan app to get money from, but Carbon is very good if they manage to approve your loan application. In this review, Carbon gets a 3.5 out of 5 rating because its loan approval is not always fast and you might not qualify for bigger amounts.

Read AlsoApply for SnapCash Loan

Leave a Reply