Find yourself in need of cash but payday is still a week or two away? Quick loans just might be the solution. These short-term, small-amount loans are designed to conveniently provide funds in a hurry. With quick loan options from banks, fintech apps and more, getting approved for the cash you require is easier than ever in Nigeria.
However, speed and accessibility come with a price. The interest rates and fees on quick loans are typically quite high. So while they can help in a financial pinch, you’ll want to borrow responsibly.
What Exactly Are Quick Loans and How Do They Work?
A quick loan is a type of short-term personal loan that you can access rapidly. Also called flash loans or emergency loans, quick loans are characterized by:
- Many can be approved in minutes or hours, instead of days or weeks.
- Often between 1 week to 1 month.
- Most quick loans range from 5,000 to 500,000 naira.
- The average APR is 25-50%, but can exceed 100% with some lenders.
The accelerated process makes quick loans ideal for covering an unexpected expense or bridging a cash shortfall between paychecks. However, the high cost means you usually want to borrow only what you absolutely need and repay ASAP.
Pros of quick loans:
- Get funds deposited quickly into your account
- Requires minimal paperwork
- Bad credit may not disqualify you
Cons to watch out for:
- Very high interest rates
- Fees can add up quickly
- Can be easy to fall into debt traps
Now that you understand the basics, let’s look at the various options for obtaining quick loans in Nigeria.
Types of Quick Loans Available in Nigeria
There are a growing number of ways to access quick loans, including:
Quick Loans from Banks
Many major banks like Access, UBA, and FirstBank offer emergency loan products that can provide funds in as little as 24 hours. You’ll need to have an existing account and meet creditworthiness requirements. Interest rates range from 1-4% per month typically.
Fintech Lending Apps
From Carbon to Renmoney to Branch, these digital lending platforms make getting a quick loan super simple via mobile apps. Get approved in minutes without ever entering a bank. However, convenience comes at a price with rates as high as 25-50% monthly.
Payday Lenders
Payday lenders like QuickCheck and Extra Kwik Loan offer high-interest loans against your next paycheck. Easy to qualify but rates are sky high.
Pawn Shops
Pawn an item of value to get cash within minutes. You’ll get it back once you repay the loan. Interest can vary greatly.
Friends and Family
Asking loved ones for a loan may be an option and saves you interest but can complicate relationships. Approach with care.
Now let’s look specifically at getting quick loans from traditional brick-and-mortar banks in Nigeria.
Getting a Quick Loan from a Bank in Nigeria
If you already do your banking with a major institution like GTBank, Access Bank, Zenith, UBA or FirstBank, they likely offer some kind of instant, emergency, or personal quick loan. Here’s a quick overview:
Eligibility Requirements
To qualify you typically need:
- Active bank account for at least 3-6 months
- Regular income/salary
- Good credit score
- Low existing debt
The Application Process
The application process usually includes:
- Apply online, in branch, or via mobile app
- Submit basic personal and employment details
- Provide account statements
- Wait for approval (often within hours or 1-3 days max)
Loan Amounts and Terms
- Amounts from 10,000 to 500,000 naira typically
- Term lengths from 1 week to 1 month
- Must repay in full by due date
Interest Rates and Fees
- Interest rates average 2-5% per month
- Late fees apply if repayment late
- Early repayment fees sometimes charged
Tips for getting approved for a bank quick loan:
- Maintain good credit and low debt
- Don’t apply for the maximum amount
- Have steady income deposits in account
- Provide required documents quickly
Now let’s look at quick loan options from Nigeria’s growing crop of digital lenders.
Top Fintech Lending Apps for Quick Loans in Nigeria
In the past few years, Nigeria has seen an explosion of fintech apps offering instant access to loans via your mobile phone. Some top options include:
Carbon
- Loans from 5k to 500k naira
- No collateral required
- Approval in minutes
- Repay in 2-6 weeks
- Interest rate of 10% per month
Renmoney
- Borrow up to 500k naira
- No collateral
- 15% interest charged monthly
- Repay in 1-3 months
Branch
- Loans from 1k to 500k naira
- Repay in 1-12 weeks
- Rates from 10-25% monthly
- Flexible repayment structure
Fairmoney
- Get up to 400k naira
- 7-30 day repayment terms
- Rates from 10-25% per month
Pros of using lending apps:
- Super fast approvals
- Minimal paperwork required
- Good for small loans
Potential downsides:
- Very high interest rates
- Can encourage over-borrowing
- Apps access tons of your data
While fintech lending apps provide the ultimate in quick loans, make sure to borrow responsibly. Consider them for small amounts only and repay ASAP.
Important Considerations When Getting a Quick Loan
Quick loans provide fast access to cash, but should be used carefully and strategically. Before obtaining one, be sure to:
- Never borrow before reviewing interest rates, fees, repayment schedule, penalties and all policies in detail.
- Late payments lead to fees and penalties plus damage your credit. Don’t borrow more than you can realistically afford to pay back in the allotted timeframe.
- Interest rates above 50% per month verge into predatory territory. Look for more reasonable rates first.
- Know exactly when your first payment is due and how you will come up with the money. Can you cut back expenses elsewhere?
- It’s all too easy to be tempted into repeatedly rolling over a quick loan or reborrowing, sinking you into an endless debt cycle. Avoid at all costs.
By being an informed, cautious borrower, you can strategically tap quick loans to overcome a temporary cash crunch without getting stuck in debt traps.
Conclusion
Quick loans can be helpful as a last resort but do your due diligence on alternatives first. Only borrow what you absolutely require and have a firm plan in place for rapid repayment. Use them as a very temporary bridge to overcome a crisis, not a long-term solution.
With the array of quick loan options now available from banks and fintech lenders, access to fast financing is at your fingertips. But tread carefully – while quick loans provide rapid funds in a pinch, they come at a steep price. Follow the tips and advice in this guide to borrow wisely so quick loans remain quick and don’t turn into long-term debt traps.
