Top five quick loan fintechs that banks should be worried about
Indeed, financial technology (fintech) firms have been phenomenal in Nigeria’s financial services ecosystem since their foray into the sector. However, the stiff competition they brought along has caused discomfort for Banks, albeit to the some benefit of customers.
While some banks have been swift in responding to the “threat” posed by fintechs, the truth remains that these companies remain a source of threat. If not for anything, they keep attracting new customers every now and then; customers who would normally go to traditional banking halls to transact business.
Kwik Money has a special innovation which can access and rate your credit score by simply using the phone number you provide upon registration. How it works is that the fintech’s automated system will access your financial records and use that to calculate how much you are eligible to borrow. You could be eligible to borrow anything between N500 and N500,000.
In terms of the cost of loan, you will be required to pay back at an interest rate of 15% for a duration of 14 days, and 25% for a duration of thirty days. The interest rates are within the range collected by many other fintech loan platforms.
Carbon (formerly Paylater)
Carbon is yet another quick loan fintech that is arguably giving banks headache. Much like Kwik Money, you could become eligible to borrow between N10,000 and N500,000. To access loans via this platform, you will be required to download the Carbon app and register. The platform caters to everyone: from students, to salary earners and business owners.
Carbon’s cost of loan is probably the best when compared to the other platforms herein ranked. This is because, the more money you borrow, the less interest rate you will be required to pay the company. However, before you can borrow a lot of money from Carbon, you must have successfully passed through various stages.
According to the Carbon ladder, the starting point for any borrower is N10,000. This loan is for the duration of 15-30 days at an interest rate of 10%. You will then remain on this stage until you’ve successfully repaid your loans nine times, after which you become eligible to borrow N50,000 at an interest rate of 5%.
Zedvance offers assorted loan packages to salary earners, and business owners. If information available on their website is anything to go by, customers can borrow as much as N5million upon registration. Registration requires downloading the Zedvance app from Google Play.
This company’s cost of loan is fixed at a 5.4665% interest rate per any amount you borrow. This makes it one of the most reasonable and attractive interest rates currently being offered by a Nigerian loan fintech.
Renmoney is one of the most popular and innovative loan fintechs in Nigeria today, though its terms of engagement may not be best out there. The company says that customers can get loans of up to N4 million for a duration of 12 months at an interest rate of 33.9%. Meanwhile, the company has a policy of collecting what it calls “management fees” of N35,700 which is collected alongside the interest. This does not sit well with some customers.
Much like the process for the other fintechs mentioned above, accessing loan from Aella Credit is reasonably easy. There are four basic steps – download the app, register, fill out an application, and receive your money. Based on their assessment, you could be qualified to receive N1, 500 to N90, 000 for a duration of one to two months.
In conclusion, it is important to mention that banks are already upping their games in the area of quick loans to customers. Consequently, the likes of Guaranty Trust Bank Plc and Sterling Bank Plc are making considerable effort by offering reduced interest rates and efficient services.
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