Back in January this year, long before the COVID-19 pandemic had us all re-thinking our plans, Tony (not his real name) was contemplating which bank’s payday loan to take advantage of. At the time, he had a small business idea he was putting together, and the savings in his bank accounts needed to be supplemented in order to bring said idea into fruition.
Unfortunately, the young man couldn’t come to an early decision as to which bank to patronise. He uses three different banks, all of whom have different terms and conditions for accessing their payday loans.
The main reason Tony could not decide on time is that he could not differentiate which bank offers the most favourable and cost-effective loan. And because he did not decide, he ended up not being able to pursue his business venture before COVID-19 hit Nigeria.
Now, you may recently have found yourself trying to decide which payday loan to apply for, especially now that the economy is in a fix. Well, do not be confused. We’ve got you covered with this article which has ranked the best payday loans available for you; based on their terms and conditions. This ranking encompasses both traditional banks and fintech.
A quick overview of banks’ lending amid the pandemic
Do note that some banks have become really careful with the way they give out loans, considering the economic fallouts of the Coronavirus pandemic. Just last week, Nairametrics reported that as many as 17 commercial banks have approached the CBN seeking to restructure their loan books due to the adverse effects of the pandemic.
This notwithstanding, some banks are still giving out loans, especially payday loans. It all depends on whether you meet the most basic criteria – having a constant inflow of monthly income (salary) into your bank account.
Below are the best bank and fintech payday loan offers in Nigeria, based on interest rates
GTBank’s Quick Credit: Earlier this year, Guaranty Trust Bank Plc took a major step by crashing the interest rate for its quick loans. At the moment, the tier-1 bank offers the cheapest interest rate per month of 1.33%, down from 1.75%. There are no hidden charges to this loan. In other words, no management, legal, or insurance fees attached to this loan. Another reason why working-class Nigerians love GTBank loans is that borrowers are not required to provide collaterals.
According to information contained on the bank’s website, there appear to be two different types of quick loans available to both salary account holders and non-salary account holders. For the salary advance loan, applicants can get up to 50% of their monthly salary. Note that only those earning a minimum of N25,000 (for government workers) and N50,000 (for private-sector workers) are eligible to apply. It has a tenor of 30 days. Successful applicants would have their salary advance loans made available to them 24 hours after application.
Meanwhile, there is also another GTBank quick loan that guarantees both salary earners and self-employed borrowers up to N500,000 to N5 million, at an interest rate of 1.33% per month. Specifically, salary earners can borrow between N10,000 to N5 million, while self-employed customers can borrow between N10,000 to N500,000. Both categories of customers can repay their loans within 6-12 months. Again, there are no hidden charges.
GTBank customers can access these loans either through the bank’s USSD code, internet banking facility, or the bank’s mobile banking app. Eligible customers must be between 18 and 59 years old.
UBA’s Click Credit: In February 2020, United Bank for Africa Plc launched Click Credit, a time loan that was designed to help UBA customers meet their urgent financial needs. This easy-to-access credit facility makes it possible for eligible customers to get up to N5 million. Information available on the bank’s website said the loan can be repaid within a 12-month period at an interest rate of 1.58% per month. There are no hidden charges to this loan.
Application to this loan is very easy. No paperwork is required. You can apply using the bank’s USSD code or its internet banking facilities. Learn more about this payday loan by following this link.
First Bank’s FirstAdvance: First Bank of Nigeria Ltd has the second-best payday loan interest rate in the market. At 2.5%, the interest rate is fair enough. However, there is the proviso that the interest must be collected upfront, as well as a management fee at 1% flat and a credit life insurance of 0.50%.
There are other conditions to be considered when choosing FirstAdvance. Much like other payday loans, it is only available to First Bank customers. And unlike GTBank’s Quick Credit, this one is solely available to salary earners. Successful applicants can receive up to 50% of their salary, although only a maximum of N500,000 shall be made available to a single obligor.
FirstAdvance has a tenor of 30 days. The loan amount shall be automatically taken out of the borrower’s account by First Bank as soon as they receive their monthly salary.
Zenith Bank’s Term Loan: Term loan… That is what Zenith Bank Plc calls its salary advance loans or short-term loans. This loan is only offered to salary-earning professionals whose accounts are domiciled with the tier-1 bank. These customers can get loans up to 60% of their monthly salaries, albeit at an interest rate of 2.16% per month. Borrowers are also required to pay 1% flat management fee.
Fidelity Ban’s Fast Loan: Fidelity Bank Plc offers Fidelity account salary earners up to 50% of their salaries (between N10,000 and N1 million) at an interest rate of 2.95%. Customers will also pay 1% management fee, 0.25% insurance fee, as well as N100 service charge.
Prospective obligors must have consecutively received three months’ salaries and must have a clean credit record, the bank said in an explanatory note on its website. The loan can be accessed via Fidelity Bank’s USSD code.
Renmoney: This fintech company offers one of the best interest rates among its peers. Information obtained from the company’s website said both salary earners and self-employed business owners can borrow up to N2 million for a duration (tenor) of three to twenty-four months. This shall be charged at an annual percentage rate of 35.76%, which basically translates to 2.98% interest rate per month.
Note that no collaterals are needed to access these loans. Also, no mention was made of management fees or any other hidden charges.
FCMB’s Fast Cash: Both customers and non-customers of First City Monument Bank Ltd can receive fast loans to the tune of N100,000 and N200,000 respectively. Information available on the bank’s site said the loans can be accessed instantly via USSD code, with no collaterals required. There’s an interest rate of 3.5% monthly, plus a management fee of 1% which would be collected upfront as soon as the loan is being disbursed.
Page Financials’ Remit Credit: Page Financials is another fintech that is making an impact in the lending business. Information contained on the company’s site said borrowers can get up to “N2.5 million with a repayment schedule that extends to 12 months” at an interest rate of 3.76% which will be charged flat per month.
There is no management fee attached to this loan. Successful applicants can get their loans disbursed in three hours. It should, however, be noted that this fast loan option is only available to salary owners whose employers process their salary payments through Remita.
Access Bank’s Payday Loan: Access Bank Plc charges 4% interest rate, 1% management fee (flat), and 0.15% credit life insurance fee (flat) for its payday loans. Salary earners who have accounts with the bank can receive up to 75% of their salaries, or other amounts that may be approved by Access Bank.
Note that Access Bank’s payday has a tenor of 30 days. Customers can apply through the bank’s electronic banking channels, including their USSD code.