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How to Get Loans on Your Phone Without Collateral in Nigeria

Getting a collateral free loan in Nigeria is now easy. This quick read highlights most of the available options


The era of being rejected by lenders for wanting to get a loans without collateral is gradually fading into oblivion in Nigeria. Since the inception and implementation of BVN in Nigeria, several fintech companies have sprung up offering you the ability to get loans without collateral. These collateral free loans use several algorithms to analyze how fit you are with little or no paper works.

Information on your phone such as your text messages (credit/debit alerts, messages from friends and families), contacts, location and your credit history are analyzed by the algorithm of these lenders. Much have been so much invested such that several new fintech companies are springing up every day including banks to offer loans without collateral.

The feasibility of analysis with the help of BVN has opened a great door for students, startups, housewives, petty traders among others to get a quick loan and pay up later when they have the money.

The Downsides of Mobile Collateral Free Loans

Though the loans are comes without collateral there are several criticism against it. Despite its flexibility these loans offer you little to not much amounts, comes with heavy interest, the duration is short and the risk of defaulting and causing damages to your credit history is high. I’m not here to dissuade you because I’ve been a key beneficiary of this platform. Ride with me as we break it down.

High Interest loans

Most of these collateral free loans comes with high interest of up to as high as 35%. This means you pay for much while you get not enough money. The platform is only good if you need a quick emergency fund and can easily offset your debt with the high interest. Most like QuickCheck and PalmCredit comes with extra interest every day as you default. I once borrowed N5000 and defaulted to the tone of 28,000. It hurt my credit history badly that I vowed not to use QuickCheck

Short Period of Repayment

Majority of the loans without collateral offered are short term loans, ranging from daily repayment to weekly and at most three months. This is because most lenders are startup and need your money to pay new borrowers. Besides, why would you want to borrow N1000 and wait for as much as 6 months to be able to pay up, it makes no sense to me.

Small amounts of Money Given Out

The money these mobile lenders give out, are small and may not be able to solve your immediate problem. So if you are looking to obtain a loan to startup a business and you would need over one hundred thousand Naira, don’t do it. You’ll have to wait for over two years to build your credit history. Besides Paylater, not all platforms offers that much.

High Risk of Defaulting

If you are a student and your parents are civil servants, you don’t have any other means of income, then don’t try it. Especially if you know you will not be able to pay up your debts within the stipulated time. These loans without collateral have high risk of defaulting. This in turn will hurt your credit history. If you don’t know what credit history is, and how it can affect you, check out this post I made.

How do you get a collateral free loan in Nigeria?

Enough of the ranting about the bad side of these collateral free loans lets dive straight into how you can obtain these loans with your mobile phone or laptop.

There are three major ways you can obtain a loan without collateral in Nigeria. They are through USSD, Mobile Loan Apps, Your Social media Account and your Browser.

How to Get Loans Through USSD

You thinking it’s a joke right? Or maybe it is too good to be true. Well it is 100% through and legit. There is a company called Ferratum that came into Nigeria though they have been in existence in the US and partnered with QuickTeller. While the mobile app loans were trending, they introduced a new and innovative method of getting a loan through your phone using USSD.

This means that you don’t have to own a phone that has internet connection, as long as you can recharge your phone or check your account balance, as long as your buttons are working you may be eligible for this loan.

How Can you Get this loan without internet?

I will share a detailed method in a later post, but lets get it quickly done here.

  1. Dial *322*6# on your phone,
  2. Select Get a loan
  3. Enter your loan amount
  4. It will determine the available offers for you at the moment. With options on how much you can borrow
  5. Select the amount made available for you.
  6. Enter your bank details
  7. Your loan should arrive within 24 hours.

It is that easy and simple. However note that you stand a chance of getting higher credit IF you do more internet banking with your card. Also for you to be eligible, you must be 18 years and above.

Alternatively, you can use your MTN sim to get loans as long as you have a Diamond Y’elle account. Dial *606*4# and follow the prompt.

Get a Loan with Your Browser

The good thing is you can get a Loan with your browser as long as you can access the internet. Financial companies like Rosabon, you can get a loan of up to 3 million naira without collateral. But there is a catch. Be in a paid employment, between 21 – 58 years of age, operate a  salary account, must have a pension account or tax ID, valid Proof of Identification and a recent utility bill to prove you live where you claim to live.

Alternatively you can go for other platforms that offer you loans through your browser like Credit Ville, Petty Cash,  Snap Credit,  EasyLoan etc.

Get a Loan Through Mobile App

Getting a collateral free loan through mobile application is one of the most common collateral free loans available in Nigeria. The introduction of the Bank Verification Number in 2015 opened doors for several fintech startups in the country.  Some of the common Mobile loan Lenders are Paylater, Fairmoney, QuickCash, Branch, PalmCredit, Aella Credit, Quick Buck.


collateral free paylater loans

Paylater allows you to get quick loan in few clicks. You can get instant short-term loans to serve your urgent needs. You can also  invest money to earn high-interest rates, and with more flexibility, recharge airtime on your mobile phone, and make bill payments for services.

Paylater interests ranges from 20% to 215% according to the amount you borrow. To me, Paylater is the best as their loans do not accrue extra interest. But they are quick to report negative credit to the credit Bureau.


Branch is another platform that makes it easy for you to access collateral free loans for the way you live anytime, anywhere. The signup process is simple and can be done in seconds. Once you are done, you can apply for a loan and receive your money straight to your Nigerian bank account.

Branch is also available in Kenya, Tanzania, Nigeria and Mexico.

Palmcredit – Instant Loans

Palmcredit is an instant collateral free loan platform that offers you up to ₦100,000 (on paper) within minutes on your mobile phone. You can get a Palmcredit loan in four easy step, Register, Apply Get Approval and Repay. However, interests are accrued per the  number of day with 1% daily interest.

AELLA Credit

Aella credit was initially targeted at employees in their network to access cash at the most competitive rates anytime, anywhere. However, their new business model now allows them to extend their loan offers to anyone who is eligible.

QuickCheck Instant Collateral free Loan

QUICKCHECK Nigeria  allows you to foot your emergency Medical bills, School fees, payday advance or unexpected cash problems, by offering you a flexibles mall loan.

QuickBucks by Access

When it comes to one of the most innovative banks in Nigeria, access bank is my first choice, from Alat to Qucikbucks. Quickbuck is an easy to use instant loan app with an excellent user interface. With few steps to take, you can get an instant loan of up to 100,000 within 24 hours.

Fair Money

Just like its counterparts, fair Money is a multipurpose finance app that allows you to get instant loans, manage your finances, invest and make quick recharge.

Social Lender

This is quite a new and innovative money lending platform. However, instead of using your credit score, social lender uses your social media presence and calculates how much you are worth in loans.

Social Lender  was created with the purpose of bridging the gap of immediate fund access for people who have limited access to formal credit. The algorithm of Social Lender performs a social audit of the user on social media, his/her online and other related platforms. The algorithm then gives a Social Reputation Score to each user.

Wrapping it up

Though this is not a detailed review of each loan platform, getting a loan in Nigeria is now easier than it used to be. You may not get a loan of One Million Naira, but hey, these are for quick and emergency funds. So if you are looking for an emergency fund, go ahead and try any of the above, but make sure you pay in time.

If you have any suggestion or if we missed any one, please do let us know in the comment section.

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