Palmcredit Loan is Legit But Has Annoying Lending Practices

What you don’t want is a loan app that will trap you with high interest rates you can’t afford to pay back, especially if the rate in the app is different from what you actually get. It’s also true that many Nigerian digital lenders lie about their offers, including interest rate, repayment tenure, and loan limits. In this review, we will scrutinize Palmcredit for you to know if it’s worth it from our experience.

Palmcredit is a lending app owned by Newedge Finance Limited. It is only legit because it is a licensed Finance Company by the CBN (Central Bank of Nigeria). Palmcredit also has an FCCPC (Federal Competition and Consumer Protection Commission) waiver due to its CBN license. The address is 17 Oguchi Okorie Street, off A. I. T. Rd, Lagos, Nigeria. But on Google Maps, the address is Elder J.K. Coker Rd, Ifako-Ijaiye, Lagos. The website is

Is Palmcredit App Legit?

Palmcredit is fully approved by the FCCPC. However, Palmcredit charges up to 40+% in loan interest. We understand that the interest rate is calculated based on creditworthiness but Palmcredit’s rate is over the roof.

Despite their high interest rate, they still add overdue interest if you default. If you default on your loan, Palmcredit will charge approximately 2.5% each day you fail to pay back. Palmcredit is also the owner of Easy Buy, Xcrosscash, XCash, and New Credit.

As for the speed of disbursing a loan, it’s different people, different experiences. Yours might be instant, but Mr. B’s own may remain in review for more than 24 hours.

The repayment tenure depends on the amount of money you borrow. For example, if you are credited 10,000 naira, you might be given 7-14 days to back.

Even though Palmcredit says that they only give 10,000 to 300,000 naira, they can actually pay out as little as 2,000 naira only. Now, let’s say again that their interest rate is very high. For example, if you apply for 6,000 naira, Palmcredit will only pay 5,000 naira and ask you to pay back 7,450 naira in 14 days. If you borrow 80,000 naira, you will pay back around 120,000 naira in 3 months. If you borrow a 20k loan, you’ll pay an interest of 7,685 naira in 28 days.

As you can see, the repayment tenure depends on the loan amount you qualify for. That is, the higher the loan, the higher the repayment tenure. Please, make sure you confirm your tenure after taking a loan from Palmcredit.

This is because we have received an email from a borrower who took a 28/30 day loan of 25,000 naira, only to find out that it was changed to 14 days after a Palmcredit agent called to inform her that she was overdue.

Palmcredit also has a reputation for contacting borrowers before the due date. Also, if you default, Palmcredit will call to harass you. To avoid this experience, follow the steps explained here. They’ll beg you to use their app but when you default, the unprofessional agents will harass you. Just one day overdue, and Palmcredit will start sending you unprofessional messages, and threats to blacklist your BVN.

Palmcredit also has a bad practice of crediting you with a loan you did not apply for after you cleared your debt. This usually happens after you repay a loan, only to wake up to a message notification that Palmcredit has loaned you money again.

Note that Palmcredit may require you to send 50 naira to its Fidelity Bank account. However, this does not mean that you will be approved for a loan. It’s only used to verify if you own the account.

How Does Palmcredit Work?

Palmcredit has a loan limit of 10,000 naira and up to 300,000 naira. Don’t install this app with the hope of collecting a loan of up to 300,000 naira as they claim—you won’t get it, especially if it’s your first time.

With Palmcredit loan, what you’ll experience is loan interest of up to 40% or more, with up to 2.5% of daily interest if you exceed your due date.

Again, if you apply for 6,000 naira, Palmcredit will only pay 5,000 naira and ask you to pay back 7,450 naira in 14 days. It appears that for some loan amounts, and perhaps, the applicant’s profile, Palmcredit pays less than you apply for.

Unfortunately, the more you borrow from Palmcredit does not mean your next loan will be higher. It could actually be a lot smaller or nothing at all after you clear your debt.

How to Use Palmcredit App

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

If your loan application is approved, the money will be credited to your bank account. As for the eligibility, you have to be resident in Nigeria and up to 18 years old but not older than 60 years.

Pros and Cons


  • Available on Google Play Store
  • FCCPC approved
  • Licensed by the CBN as Finance Company
  • Has a CAC (Corporate Affairs Commission) profile


  • Palmcredit is a loan shark
  • Not available on the Apple App Store
  • High interest rates
  • Sometimes calls borrower’s contacts
  • Disturbs borrowers before the due date
  • Palmcredit takes interest up front and, as such, does not disburse the complete loan amount
  • Charges up to 2.5% interest after due date

Is Your Personal and Bank Data Safe with Palmcredit Lender?

Newedge Finance Limited has had many complaints about customer data abuse, including calling borrowers contacts and digitally harassing customers who default. They also threaten to blacklist defaulting borrowers. You cannot trust this loan app with your personal and bank information. Newedge’s Palmcredit often erroneously debits account of borrowers who have cleared their debt; shows their system or whatever they have in place to charge debtors isn’t reliable.

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

When you install the Palmcredit 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. Palmcredit lender can also contact someone in your phone list, SMS, call list, etc.

It’s up to you to make this decision. Palmcredit app may not be a perfect loan app but one thing they can sometimes do is actually give loans.


This app is legit with annoying practices such as those we have talked about. If you can’t afford its high interest rates, don’t bother borrowing money from them. In this review, Palmcredit gets a 2 out of 5 rating for high interest rates, paying below the amount of loan applied for, and customer harassment and data abuse complaints.

Read AlsoNigerian Loan App That Gives 50k Instantly

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