7 CBN approved payday loan companies to save you when broke or during emergency
Have you heard the popular saying that in Nigeria, the ‘take home’ of most salary earners is actually not enough to take them home? Sounds like a joke but it is actually real. For some salary earners their salary barely take them to the end of the month (home). Some peoples’ salary abandon them on the 15th of the month(half way home). Others have their own disappear on the 24th (that is their bus stop). Just very few Nigerians can boast of a take home that actually takes them home.
It is even worse now that inflation has made nonsense of whatever anyone may be earning. And of course we all know that as prices of things go up in the market salary remains where it is.
This has led most Nigerians in desperate need of money to sort out certain needs to resort to loan sharks that have made life miserable for them. The activities of these loan sharks are so pronounced that Central Bank of Nigeria (CBN) is aware. And with that knowledge CBN seems to have provided alternative for Nigerians. Earlier this year CBN approved some payday loan companies for Nigerians in need of urgent loan. But these payday loan companies are specifically for salary earners. If you need other forms of quick loans you can check the best loan apps in Nigeria. But be careful to know that there are fake loan apps flooding the market today. Stay away from those to avoid losing the little you have.
List of CBN Approved Payday Loan Companies in Nigeria
The idea behind this is to save Nigerians from falling prey to loan sharks. And the basic requirement for qualifying for this loan is to have a job that pays you monthly.
Below are the payday loan companies that CBN approves.
Note that these services are all from popular and dependable commercial banks. So, you can explore any of them at any point if you have a job and there is need for them.
1. GTBank Quick Credit
The first on our list of payday loan companies in Nigeria is GTBank Quick Credit. GTBank Quick Credit gives the lowest monthly interest rate of 1.5% for payday loans. There are no hidden fees or charges with this. In other words, there is nothing like management, legal, insurance or processing fees. This is one of the things that make it one of the best payday loans. Of course this does not require collateral.
However, GTBank Rapid Loan is another form of loan that is available to both salary earners and self-employed. The interest rate is also 1.5% per month. As a salary owner you can borrow between N10,000 and N5,000,000 depending on your salary. While self-employed clients can borrow a maximum of N500,000. The tenor for both is 6 to 12 months.
You can request for Quick Credit instantly by dialing *737*51*51# or visiting their site as well as through the bank’s app.
2. Access Bank Payday Loan
Second on our list of CBN approved payday loan companies in Nigeria is Access Bank Payday loan.
For payday loans, Access Bank Plc charges a 4% interest rate, a 1% administration fee (flat), and a 0.15% credit life insurance fee (flat). Note that these charges are collected upfront. Salary earners with Access Bank accounts can get up to 75% of their monthly salary from this service.
It has up to thirty-one (31) days tenor. This is purely a payday loan because it is expected that you pay back once you receive your salary or at maximum within 31 days.
You can make use of Access Bank PayDay Loan by dialing *901*11*1# or via Internet Banking, WhatsApp Banking. You can even use Access Mobile App and QuickBucks App.
Requirements for Access Bank Payday Loan
- Receipt of monthly salary (via payroll administration).
- At least 1-month salary must be received in the Borrower’s account in Access Bank.
- Completion of application via the bank’s electronic banking platforms.
- Automated confirmation on eligibility and visibility of last month’s payroll through a separate preapproved customer database.
- Acceptance of offer via its electronic banking platforms including, but not limited to, *901*11#, ATM, mobile banking app, internet banking and QuickBucks app.
- Acceptance of the Terms and Conditions.
- Irrevocable salary domiciliation to the Bank.
3. First Bank Personal Loan Against Salary Service
Applicants must have a salary account with First bank to enjoy this service.
The highest amount a customer can borrow is N500,000. In fact, it is actually limited to 50% of their net monthly wage.
The customer must pay all charges upfront upon loan disbursement. And the charges include a 2.5% interest rate and a 1% management fee. While the loan amount is repaid within the next 30 days or upon receipt of paycheck inflow (whichever comes first).
This product can be accessed through FirstBank’s digital channels: FirstMobile App (FirstBank’s Mobile Banking App) and USSD by dialling *894*11#.
4. First Bank’s First Advance
FirstAdvance is a 30days tenured digital loan solution that offers convenient and easy access to cash for customers awaiting payment of their salaries.
The product is designed for salary earners whose accounts are domiciled with First Bank and have received regular salaries in the last two months or more.
The maximum amount to be accessed by the customer is N500,000 subject to 50 percent of net monthly salary.
This product can also be accessed through FirstBank’s digital channels: FirstMobile App (FirstBank’s Mobile Banking App) and USSD by dialing *894*11#.
There are no hidden fees associated with accessing FirstAdvance as customers only will have to pay all charges upfront upon loan disbursement which includes interest rate of 2.5%, one percent management fee while loan amount is repaid within the next 30days or upon receipt of salary inflow (whichever comes first).
5. UBA Click Credit
UBA Click Credit offers salary earners a loan of up to 5 Million Naira at an interest rate of 30% annually (2.5% monthly). Moreover, the loan tenor is 12 months with no hidden charges.
A UBA account with a regular inflow of at least N25,000 monthly is required to access the loan.
There is no need for any paperworks as the bank’s USSD code or its internet banking services can be used to apply.
6. Zenith Bank Term Loan
Customers who have a salary account with Zenith bank can access up to 60% of their monthly salaries. This is at a monthly interest rate of 2.16% through this service.
Borrowers also pay a one-percentage-point management charge.
Requirements to access Zenith Bank Term Loan
- Account opening form,
- One passport photograph of authorized signatory,
- Letter of introduction from your employer on the company’s letterhead
- Staff identity card.
7. FCMB Fast Cash
FCMB FastCash is a paperless credit facility by First City Monument Bank which does not require any collateral. It is an instant loan, and you can apply via the mobile app or USSD code *329*11#
Customers can get up to N200,000 at an interest rate of 8% monthly. It also has a management fee of 1% which one has to pay upfront during disbursement.
Non-salaried application is 15% upfront charge.
Other conditions are 30 days tenors for new customers. For returning customers it will be up to 90 days clean up cycle.
Features of FCMB Fast Cash
- Instant access to funds
- Up to N200,000 loan amount
- No paperwork required, just apply through the mobile app or *329*11#
- No collateral needed
- Interest rate for salaried is 8% while non-salaried is 15% upfront charge
- 30 days tenors for new customers
- Up to 90 days clean up cycle for returning customers
- Customer can apply as many times in a year as s/he is qualified.
Advantages of CBN Approved Payday Loan Companies
CBN approved payday loan companies might seem like too much stress especially for those that involve paperwork. This is in comparison to the loan apps that can approve your loan in minutes from the comfort of your home. But the payday loan companies that CBN approve have their advantages. And if I were to advise, I will say you should stick with them.
Here are some of the advantages:
- Peace of mind: loan sharks rely on fear to recover the loans they give out. Should you default on your loan, most of them will send derogatory messages to your contacts and family. But with official payday loan companies or apps, you get the peace of mind that something like that won’t happen even if you default.
- Build better credit score: every time you take and repay a loan, the transaction increases your credit score. This can give you higher loan amount in the future if you need to. Official loan apps keep a credit report unlike the loan sharks who don’t.
- Better interest rate: the interest rates you pay on regulated loans is much lower compared to what other loan sharks will charge you. You also get a longer repayment period starting from 30 days compared to the 7 days you get on most loan sharks.