For easy convenience it is very essential for any individual to research on several loan providers so as to get the best company to take loan from. While doing this research, one of the most essential thing to look out for is the interest rate which various loan providers derives in getting any loan from them.
In this article we will be looking intensively on everything about interest rates and also most importantly the interest rates of several online loan apps in Nigeria. After going through this guide you should be able to choose or determine which online loan company is best for you to patronize, please stay tuned!
What are Loans Interest Rates?
A loan interest rate is simply a percentage which a loan service provider adds to the given amount which was loaned to the customer. Those interest rates are the profit which the loan service provider derives from giving out loan to individuals.
In other words for every amount of money you borrow they must be a percentage added to it which you must pay including the initial loan amount you collected.
Types of Loan Interest Rates?
1. Weekly Interest Rates:
Weekly interest rates is usually paid per week. This type of interest rate is common for individuals with low credit score or individuals who just started borrowing. Weekly interest rate based loan is best for person's who are expecting money very soon but needs to foot an urgent bill before them.
2. Monthly Interest Rates:
This is the most common interest rate as far as online borrowing is concern, monthly Interest rates are paid monthly including the sum that was borrowed i.e if you collect a loan of #10,000 Ten Thousand Naira, you are required to pay back the Ten Thousand Naira plus an additional interest rate on top which serves as profit to the loan service provider. The interest rate varies from 25% - 50% as the case may be.
3. Yearly Interest Rates:
This interest rate is common for large scale businesses or advanced individuals who usually collects a large sum of loan amount to scale their businesses or boost their carrier.
Yearly interest rates are usually for amounts ranging from #1,000,000 One Million Naira and above as the case may be.
Interest Rates of Online Loan Apps in Nigeria 2024
1. FairMoney: 30% Monthly
2. Branch: 15% to 34% Monthly
3. Kuda: 0.3% Daily
4. Carbon: 2% to 30% Monthly
5. QuickCheck: 2% to 30% Monthly
6. Palmcredit: 14% to 24% Monthly
7. Renmoney: 2.9% to 34.17% monthly
8. Aella: 6% to 20% monthly
Conclusion
Having gone through the list of the interest rates that several loan providers adds to any loan amount collected from them, it's left for your to decide on the best loan service provider to collect loan from. Other things to look out for includes payment time frame, payment methods and flexibility of payment plan.
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