PalmPay Loan is Legit But Doesn’t Focus on Lending

What typically makes a good loan is the interest rate, loan limit, repayment tenure, and reputation of the lender. Unfortunately, many digital lenders in Nigeria are not reliable. In this review, we will scrutinize PalmPay for you to know if it’s worth it from our own experience.

PalmPay is owned by PalmPay Limited. It is a licensed Mobile Money Operator by the CBN (Central Bank of Nigeria). PalmPay also has an FCCPC (Federal Competition and Consumer Protection Commission) license waiver due to its CBN license. The address is 20 Opebi Rode Ikeja, Lagos. The website is

Is PalmPay App Legit?

PalmPay is legit, approved by the FCCPC, and licensed by the CBN. The problem with this PalmPay is that it doesn’t focus on lending money to people.

If you need an app that can transfer money, pay bills, buy airtime/data, and borrow money all in one place, then use PalmPay. But if you need an app that focuses on loans only, get Flexi Cash instead. For the record, Flexi Cash isn’t PalmPay but Flexi Cash works hand in hand with PalmPay when it comes to repaying your loan manually or automatically. That means you can manage your Flexi Cash loan repayment from PalmPay while using PalmPay for things like transfers, bills, airtime, etc.

PalmPay works more like a mobile money operator than a digital lender. The good thing is that our experience with PalmPay is a lot better than you can get from most loan sharks. PalmPay has its own bad experiences anyway, and we’ll go into that.

The interest rate is in the region of 20%, which isn’t bad considering that many loan apps charge between 50% and 100%. This rate is different for different Borrowers because it is calculated based on your creditworthiness and how long you have been on PalmPay. If you are a new user, your interest rate is going to be higher than an old user.

PalmPay also adds daily overdue charges up to 1-2% of your loan if you default after your due date.

Palmpay loan uses Flexi Cash. So, when you are applying for a loan, it’s going to show up as Flexi Cash, which is why it might be a lot easier or more focused for you to borrow from Flexi Cash.

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

The repayment tenure depends on the amount of money you borrow. For example, if you are credited 3,000 naira, you might be given 6-7 days days to back 3,720 naira. If you borrow 30,000 naira, PalmPay can give you 20 days to pay back.

Even though PalmPay says that the least amount it can loan is 2,000 naira, you can borrow as little as 500 naira.

The repayment tenure depends on the loan amount you qualify for. That is, the higher the loan, the higher the repayment term. Make sure you confirm your tenure after taking a loan from PalmPay.

This is the part you may not like, but it is what it is. PalmPay has a reputation for contacting borrowers who owe them. If you default, some PalmPay agents will call to harass you or text you an embarrassing SMS. They sometimes also call people from your contact list if you don’t pay back on time. To avoid this experience, follow the steps explained here.

How Does PalmPay Work?

PalmPay has a loan limit of 2,000 naira and up to 500,000 naira. You can actually borrow lower than 2,000 naira – as low as 500 naira. Don’t install this app with the hope of collecting a loan of up to 500,000 naira as they claim—you won’t get it, especially if you’re a new user.

If you borrow like 3,000 naira, your repayment amount could be 3,720. When borrowing in the app, your Repayment amount will be shown to you. If it’s an amount you don’t like, and you feel the interest rate is too much, then don’t use it. But PalmPay is actually very good in terms of interest rates.

Remember that your loan amount determines the duration. Your credit profile also determines the amount of money you can get. PalmPay won’t just lend you 500k simply because it’s their promise.

Unfortunately, the more you borrow from PalmPay 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 PalmPay App

  1. Download the PalmPay 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

You will get a Flexi Cash loan on the app if you are eligible. It’s under the finance services section on your app.

If your loan application 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
  • FCCPC approved
  • Licensed by the CBN as a Mobile Money Operator
  • Has a CAC (Corporate Affairs Commission) profile


  • PalmPay is a semi loan shark
  • Sometimes calls borrowers’ contacts
  • Disturbs defaulting borrowers with calls and text messages
  • Doesn’t focus on loans only

Is Your Personal and Bank Data Safe with PalmPay Lender?

PalmPay Limited has had many complaints about customer data abuse, including calling borrowers’ contacts and digitally harassing customers who default. You can trust this loan app with your personal and bank information since it is obligated under the NDPA (Nigerian Data Protection Act).

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

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


This app is legit, but with a few annoying practices such as those we have talked about. In this review, PalmPay gets a 3.5 out of 5 rating for not focusing on loans, defaulting customer harassment, and data abuse complaints.

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