Lowest Interest Rate Loan App in Nigeria

We all understandably hate loan sharks due to their aggression when asking for loan repayment, the short loan terms, and most annoyingly, the high loan interest rates. However, some instant loan apps are not so terrible. In fact, not all of them are sharks. It’s just that a country like Nigeria is littered with so many loan apps that you find it difficult to tell a good one from a bad one that shouldn’t even be installed in the first place. In this guide, we will look at the best loan app with the lowest interest rate you can borrow from.

Lowest Interest Rate Loan App in Nigeria

The app mentioned here charges its interest as advertised, not like those predatorya apps that advertise 10% but collect 50% once you install their app 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 CayCredit and Tiger Credit. They also have a reputation for contacting borrowers before the due date of their loan.


ALAT is an app owned by Wema Bank. It’s legit and not a loan shark. ALAT by Wema Bank is a loan app that has the lowest interest rate in Nigeria. However, this app is not specifically a loan app because it mostly operates like a commercial bank. So, you’ll have to technically own a Wema Bank account to be eligible. The sign up process is easy but in order to have a TIer 3 account, you have to go through the KYC procedure, which means you’ll do your biometric at the nearest Wema Bank branch.

ALAT is not listed on the FCCPC list since it’s not the typical loan app. It is, however, licensed as a ‘commercial bank’ by the CBN. Yes, this app is 100% legit. You can borrow up to 2 million naira without collateral if you have a very good credit history. ALAT’s interest rate is 2% per month on a reducing balance basis. ALAT allows borrowers to pay back loans before the payback date. Nope, unlike loan sharks, ALAT won’t call you before the due date. So, ALAT could easily be the best on this loan but their requirement is a lot more stringent.

4. 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.

5. Branch

Branch also has a low interest rate. Not the best ‘low’ but much friendlier than most loan sharks in Nigeria. This is not to say that Branch isn’t a loan shark. It has the characteristics but they are a less aggressive lender. The website is branch.com.ng, and this loan app is owned by Branch International Financial Services Limited.

Branch is licensed by the FCCPC and licensed by the CBN as a ‘Finance Company’. You can obtain a loan from 1,000 to 500,000 naira. The advertised loan term you’ll see is 62 days to 1 year but this can sometimes be shorter than advertised.

The monthly interest is from 3% to 23%. No guarantees that it won’t exceed 23% but it can be within this range depending on your risk profile as a borrower. This is why you should always prioritize building a good credit history.

One major problem with Branch loan app is that they are likely to reduce rather than increase your loan limit. For example, if you take a loan of 3,000 naira, 6,000 naira, and then 8,000 naira, you’ll expect your limit to keep increasing, right? Unfortunately, Branch may reduce the loan limit back to 3,000 naira. Sometimes, you will be told that you’re ineligible for a loan until after sometime, typically if you’ve defaulted.


ALAT by Wema is the lowest interest rate loan app in Nigeria. No lies about its interest rate, and no hidden fees. In fact, it’s the most transparent loan app on this list. A lot of loan sharks out there will advertise low interest rates only for you to find out that they take up to 50% interest after applying for a loan. Do not condone such apps. Instead, report the transaction to your bank and the FCCPC immediately as the app has not kept its promise.

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