FairMoney Loans: 2023 Review

FairMoney loans at a glance

FairMoney Microfinance Bank is a fully digital platform that offers loans to anyone with a Bank Verification Number and positive credit history in Nigeria. Salary earners, non-salary earners, entrepreneurs, petty traders, individuals, and even groups can all benefit from the initial maximum loan offer of ₦1,000,000 as long as they are deemed eligible.

The advantage of Fairmoney loans is numerous with their digital nature. Some of them are:

• Clear and concise information on loan packages
• Quick disbursement times (within 5 minutes)
• No collateral needed

There are, however, drawbacks too, some of which are:

• Only one physical branch in Lagos
• You have to download the FairMoney mobile application to apply for a loan
• Very low initial maximum loan amount (₦1,000,000)

Do I qualify for a FairMoney loan?

This is solely at the discretion of FairMoney after the necessary checks have been performed. There are no particular requirements to qualify. You will need the following:

• An android phone
• Bank Verification Number
• Bank Debit Card
• Valid means of identification (National Identification card, Voter’s card, or Driver’s License

To increase your chances of qualifying for a FairMoney loan, you need to make sure that the phone number linked to your BVN is active and has a healthy calls/SMS history. Your loan application will be rejected if your phone usage history is blank without a proper excuse. Your bank account must also have a healthy flow of cash to show that you can comfortably repay the number of funds you are asking to lend on the due date.

How to apply for a FairMoney loan?

You can only apply for a FairMoney loan through the FairMoney mobile application on the Google Play store. This application is not available in the Apple Store, so you cannot use your iPhone or iPad for the application.

After you have downloaded the application to your Android device, you will be required to sign up with your phone number that is linked to your Bank Verification Number. You will then have to answer a few questions and confirm your personal details before you can receive a loan offer.

Upon confirmation, you will receive your cash in your specified account in minutes through the mobile app.

How much can I borrow from FairMoney?

The minimum amount you can borrow from FairMoney is ₦1,500, while the maximum amount you can borrow is ₦1,000,000.

If you take loans from FairMoney and you repay on time (this significantly boosts your credit report and history), you can access higher amounts.

FairMoney Interest rate and loan tenure

Interest rates range from 2.5 to 30%, with annual percentage rates (APRs) from 30% to 260%. The minimum loan tenure is 61 days, and the maximum loan tenure is 18 months.

Your interest rates and loan tenure can increase with positive loan repayment behaviour.

Other loan fees and penalties

No penalties for early repayment.

If you do not repay at the agreed time, you will be subject to late fees at the discretion of FairMoney, your lending account will also be suspended, and you will be reported to the national credit bureau and possibly permanently suspended from lending from other credible lending institutions.

Benefits of FairMoney loan

FairMoney boasts quick disbursement times (within 5 minutes) of funds without collateral. This can be very advantageous for Nigerians looking to get quick loans for their personal or business use. All the information needed to apply for FairMoney packages is available and easy to follow on their website. The mobile application is also very easy to use once you have all the necessary details you need to apply for a loan.

Good borrowing behaviours (paying on time) with FAirMoney also lead to more benefits apart from the fact that it helps customers build better credit scores.

Where FairMoney can still improve

FairMoney prides itself on being a fully digital bank with only one physical branch in Lagos that does not even hold any cash. It, therefore, is surprising that the Fairmoney application is only available for Android users on the Google Play store. FairMoney can improve its operations by providing a FairMoney application on the Apple Store so that iPhone and iPad users can conveniently process funds through a Fairmoney app without having to search for users of android devices.

Fairmoney can also increase the initial maximum loan amount of ₦1,000,000.

In the end, FairMoney is a great option for many “Android-wielding” Nigerians, as individuals across all sectors can enjoy collateral-free loans with minimal documentation. The FairMoney mobile application automatically creates an account for customers that wish to acquire loans through it, and this account also comes with great benefits (asides from the current benefit of having a new FairMoney account)- including but not limited to free bank transfers) – that might encourage many Nigerians to make better decisions with money.