Loan Apps with Low Interest Rates: the only option we sometimes have is to seek loans, either from family and friends or from a loan app. But thankfully, guys, with the way Nigeria is going, we’ve reached a stage where we can now get loans from licensed loan companies without too much paperwork or collateral.
As of September 2025, over 200 loan apps have been approved in Nigeria. This means we now have more options to choose from—in terms of interest rates, approval speed, loan documentation, and flexibility.
What Are Loan Apps with Low Interest Rates?
Loan apps with low interest rates are simply mobile applications that allow you to borrow money without charging you too much on repayment. When we say “low interest,” we mean the extra cost you pay back on top of the money you borrowed is small and affordable.
For example, if you borrow ₦10,000 from a loan app with low interest, you might pay back ₦10,500 or ₦11,000 depending on the terms. But if the interest is high, you could end up paying ₦15,000 or ₦20,000 for that same loan.
See Also: Full list of Loan Apps Without Face Verification in Nigeria 2025
Why Interest Rates Matter When Choosing a Loan App
One thing every borrower should consider first is the loan interest rate. Interest rate is what determines how affordable a loan is.
If the charges are too high, you can easily find yourself trapped in debt. But when the app has lower interest rates, repayment becomes much easier and less stressful.
Think about it this way: loan interest is simply the extra cost you pay for using the money. Even if the loan looks small at first, a high interest rate can quickly turn it into a burden.
For example, let’s say you borrow ₦50,000.
- At 5% monthly interest, you will repay ₦52,500 after one month.
- But at 20% monthly interest, you will be paying back ₦60,000.
That is a difference of ₦7,500 in just one month. Interest rates should always be the very first thing you check when comparing loan apps.
A lower interest rate means:
- Cheaper loans, so you save money on repayment.
- Easier budgeting, so you can plan your monthly expenses without being overstretched.
- Less debt stress, because you are less likely to fall behind on payments or get stuck in a debt cycle.
Now, many people rush to the loan app that disburses money the fastest. But here’s the truth: if the rates are too high, that quick relief is only temporary. Repayment will later become the bigger problem.
And that brings us to the loan apps themselves. Let’s look at some of the top loan apps in Nigeria that you can consider, starting with Okash.
What to Consider in a Loan App
Before you choose a loan app, there are some very important things you need to consider.
First, look for low-interest-rate apps. You want an app that will not overcharge you and will also give you enough time to pay back without stress.
Second, consider a loan app with no hidden charges. Some apps may advertise low rates, but when you check well, you will see extra fees added here and there. Always take your time to read the loan terms and conditions carefully.
Another thing is the loan tenure options. The repayment period should match your budget and situation. Some people may prefer short-term loans, while others may need up to a year.
You should also check customer reviews. What are users saying about the app? Are they reliable, do they disburse fast, and is their customer service helpful? These are things that you should look for and consider.
Lastly, look for regulatory approval. Loan apps licensed by the CBN or those that partner with commercial banks are usually safer and more trustworthy.
See Also: 30 Best Loan App in Nigeria 2025 Review
Full list of Loan Apps with Low Interest Rates in Nigeria 2025
Now that we’ve talked about why interest rates matter and what to consider in a loan app, let’s go into the main part. Here are some of the most popular loan apps in Nigeria that offer competitive interest rates.
1. Branch
Loan Amount: ₦2,000 – ₦500,000
Repayment: 62 days – 1 year
Interest: 3% – 23% monthly
Branch is one of the biggest and most reliable loan apps in Nigeria. With Branch, you can borrow from as low as ₦2,000 to as much as ₦500,000, depending on your profile.
Repayment ranges from 62 days to 1 year, and the interest is between 3% and 23% monthly.
The good thing about Branch is that it requires no collateral, it gives quick cash, and it also helps you build your credit score over time.
Click here to download branch loan app
The only downside is that interest may be a bit high for first-time borrowers. But once you repay consistently, your rates usually get better.
Ser Also: How to Get a Loan from Moniepoint in 2025 (Moniepoint Loan Guides)
2. FairMoney
Loan Amount: ₦1,500 – ₦1,000,000
Repayment: 61 days – 18 months
Interest: 2.5% – 30% monthly
FairMoney is another very popular loan app that many Nigerians use. You can borrow from ₦1,500 up to ₦1,000,000.
Repayment runs from 61 days up to 18 months, while interest is around 2.5% to 30% monthly.
What makes FairMoney stand out is the fast approval (sometimes in less than 5 minutes), plus the fact that you can also pay bills inside the app. They also give discounts for early repayment, which makes it more affordable.
The downside is that for first-time users, the repayment terms are usually shorter until you build trust with the app.
3. Carbon (formerly Paylater)
Loan Amount: ₦2,500 – ₦1,000,000
Repayment: 61 days – 12 months
Interest: 4.5% – 30% monthly
Carbon is one of the first digital loan apps in Nigeria, and they are still going strong. They give loans from ₦2,500 up to ₦1,000,000.
Repayment is usually between 61 days and 12 months, with interest rates of 4.5% to 30% monthly.
The good part about Carbon is that they don’t just give loans—the app also includes savings and investment features, so you can manage your money better. Plus, they don’t require collateral.
However, if you miss payments, the interest can go higher, so it’s best to repay on time.
See Also: SunBay Credit Loan App Review 2025: Download, Is It Legit?
4. Renmoney
Loan Amount: ₦5,000 – ₦6,000,000
Repayment: 91 days – 12 months
Interest: 2.1% – 2.6% monthly
Renmoney is different from regular loan apps because it is a licensed microfinance bank. This makes it more trustworthy for larger loans.
They give between ₦5,000 and ₦6,000,000, with repayment terms from 91 days to 12 months.
Their interest is lower compared to many apps, around 2.1% to 2.6% monthly.
The main advantage is that you can access large loan amounts, but the downside is that they usually require more documentation compared to instant loan apps.
5. Kuda Bank
Loan Amount: Up to ₦150,000 (personal); higher for SMEs
Repayment: 1 – 3 months
Interest: Competitive, varies by profile
Kuda is widely known as the “bank of the free” in Nigeria. Apart from being a digital bank, they also offer loans.
For individuals, you can get up to ₦150,000, while SMEs (small businesses) can access even higher.
Repayment is between 1 and 3 months, and the interest is competitive depending on your profile.
Kuda also gives free bank transfers and is very reliable. The only limitation is that first-time users usually get small loan offers until they build a history with the app.
6. Aella Credit
Loan Amount: ₦2,000 – ₦1,500,000
Repayment: 61 – 365 days
Interest: 2% – 20% monthly
Aella Credit is another strong loan platform in Nigeria. They give between ₦2,000 and ₦1,500,000, with repayment from 61 to 365 days.
Their interest rate is between 2% and 20% monthly, depending heavily on your credit history.
What makes Aella unique is that they don’t just offer loans—they also include insurance and health packages on the app. Approval is usually instant too.
The con is that if your credit history is poor, you may get higher interest or lower loan limits.
7. PalmCredit
Loan Amount: ₦10,000 – ₦300,000
Repayment: 91 – 365 days
Interest: 2% – 4% monthly
PalmCredit is one of the easiest loan apps to use. They give loans from ₦10,000 to ₦300,000.
Repayment is usually between 91 and 365 days, and interest is around 2% to 4% monthly.
PalmCredit is very fast in disbursing money, and their app is straightforward. The only challenge is that new users usually get smaller limits, but they increase as you repay.
See Also: EaseMoni Loan App (Review, Alternative, and Is EaseMoni Approved by CBN?)
8. QuickCheck
Loan Amount: ₦1,500 – ₦500,000
Repayment: 91 days – 1 year
Interest: 1% – 21% monthly
QuickCheck uses technology to score your credit and give you loans instantly. You can borrow from ₦1,500 to ₦500,000.
Repayment runs between 91 days and 1 year, with interest rates from 1% to 21% monthly.
They are known for having no hidden fees, and their AI-powered scoring system makes the process smooth.
The only thing is that if you miss repayment, they may reduce your loan limit next time.
9. Umba
Loan Amount: ₦2,000 – ₦30,000
Repayment: 62 days
Interest: 10% annually
Umba is not just a loan app; it also works like a mobile bank. You can borrow from ₦2,000 to ₦30,000.
Repayment is usually within 62 days, and the interest is just 10% annually—which is one of the lowest in Nigeria.
The only issue is that the loan amount is small, so it may not be enough if you need big money. But if you want a low-interest option, Umba is a great choice.
See Also: Top 10 Loan App That Gives ₦50,000 Instantly in Nigeria 2025
10. Lendigo (Business Loans)
Loan Amount: Up to ₦10,000,000
Repayment: Flexible, based on business cash flow
Interest: From 3.5% monthly
Lendigo is designed specifically for businesses and SMEs. With Lendigo, you can access loans of up to ₦10,000,000.
Repayment is flexible, based on your business cash flow, and the interest starts from 3.5% monthly.
The advantage is that they are tailored for business growth, but the downside is that you need proper business registration and documentation to qualify.
Read more: Lendigo Reviews—Interest Rate, Requirements, Legit or Scam?
11. PalmPay Loan app
PalmPay is among the lowest interest loan apps in Nigeria that offer quick loans up to ₦300,000 without wasting time.
Repayment periods range between 11 and 365 days, with an annual percentage rate (APR) of 24% to 56% per annum.
See Also: Loan Calculator (For Loan app and Bank in Nigeria)
How to Borrow Money from Loan Apps with Low Interest Rates in Nigeria
Borrowing money from these loan apps is very simple; you need to follow the below steps so that your application is approved and you don’t run into problems later. Here’s how to go about it:
1. Download the Loan App
Go to the Google Play Store (for Android) or the Apple App Store (for iPhone) and search for the loan app you want to use. Download and install it on your phone.
2. Sign Up and Register
Open the app and create an account with your phone number, email, or BVN (depending on the app). Most apps will send you a verification code to confirm your details.
3. Complete Your KYC (Know Your Customer) Profile
This usually means uploading some personal information, like
- Your BVN
- Bank account details
- Sometimes a face scan or selfie for identity verification
4. Apply for a Loan
Once your profile is complete, check the loan offers available. Most apps will tell you the maximum amount you qualify for, the interest rate, and the repayment period. Choose the one that fits your needs and budget.
5. Wait for Approval
Some apps approve loans in minutes, while others may take a few hours. If approved, the money will be sent directly to your bank account or your in-app wallet.
6. Repay on Time
Repayment is usually done through your bank card, direct debit, or in-app payment. Always pay on or before the due date, because:
- It helps you avoid late charges.
- It builds your credit history, so you can access higher loan amounts in the future.
- It keeps your interest rates low.
Final Note on Loan Apps with Loan Interest Rates
As you can see, there are many loan apps in Nigeria offering different interest rates and loan amounts. Some are best for personal needs, while others are better for business.
The key is to always compare the interest rates, repayment terms, and reviews before choosing. Don’t just go for the app that offers quick loans—think about how easy it will be for you to pay back.
At the end of the day, a good loan app should help you solve your problem, not create a bigger one.
