Let’s begin with the first question. What is an online loan? Simply put an online loan is a loan you apply for online duh without going to the bank or a physical location. The loan is applied via the lender’s mobile app or website. There’s no interview, submission of extensive documentation for collateral or guarantors.
Typically you get your loan decision i.e approval or rejection in minutes and the funds deposited in your bank account in a few hours.
I’m sure you are wowed that this is even possible especially in Nigeria.
So how do you make the most of this?
- Honesty — When filling in your application ensure you fill in your details honestly and correctly to the best of your ability. Don’t attempt to lie or alter your your name, age, BVN, income or use someone else’s phones to apply because they have very strict algorithms which will pick those up and your application can be rejected or you’d have to pay higher interests till you have proved to be credible.
- On-time or early payments — This is a major! Early/on time payments boost your credibility and increase your credit ratings with the online lenders, which will grant you access to higher amounts, lower interest rates and other perks. For example at QuickCheck after having a good track record with us you can request a report that vouches your credibility and can be presented at partner commercial banks to access higher loan amounts beyond what we presently offer*. Online lenders typically send SMS reminders to customers before their due date to make sure they don’t “forget” to pay as at their due date latest.
- Communicate — If for any reason you cannot make payment on your due date, communicate with the online lender beforehand, offer to make a part payment and give a feasible time when you’d make complete payment. The keyword being feasible — this is because after a certain number of days since your loan has been due the lender automatically sends your details to Credit Bureaus which will immediately plunge your credit score and hinder you access to financial credit from other financial institutions. At QuickCheck we advise you to borrow money from your friends and family members if you’re cash strapped as at your due date to offset your loan, because you’d be able to apply for another one immediately and pay them back rather than face embarrassment for late payment/ defaulting.
Leading online lenders in Nigeria include Paylater, QuickCheck and KiaKia.
