Last Updated on September 10, 2025 by admin
Are you aware that some bank and Microfinance Banks in Nigeria (MFBs) offer Payday loan and Salary Advance to qualify customers. According to data from the Central Bank of Nigeria,MFB has given a total loan to the private sector of N761.4 trillion.
Nigeria salary earners looking for a quick cash to settle immediate needs before the need payday could apply for payday loan or salary advance loan with any other following microfinance bank in Nigeria.
In Nigeria, several major banks offer payday and salary advance loans to their customers. These loans are designed to provide short-term financial relief to salaried employees who may need funds before their next paycheck.
The banks that offer these services include Access Bank, Fidelity Bank, GTBank, First Bank, and Union Bank. Each of these banks has specific eligibility criteria and application processes, but they generally require the applicant to have an active salary account with the bank for a certain period, usually between 3 to 6 months
To apply for a salary advance loan, customers typically need to use digital channels such as mobile apps or USSD codes provided by the bank. For instance, Access Bank customers can apply using the QuickBucks app or by dialing a specific USSD code.
The process is designed to be quick and convenient, often allowing for loan approval and disbursement within 24 hours. However, applicants must meet certain criteria, such as having a minimum monthly salary and a good credit history, to qualify for these loans
Here’s a well-sourced list of Nigerian banks and licensed microfinance banks (MFBs) that offer payday or salary‑advance loans:
Commercial Banks Offering Salary/Payday Advance Loans
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Access Bank
Offers a range of salary‑linked products under the QuickBucks platform, including:-
Salary Advance: Up to 200% of your monthly salary (max ₦5 million), repaid over 6 months at 10% monthly interest, plus 1% management fee and credit life insurance.
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PayDay Extra (PDLE): Up to 100% of salary (max ₦2 million), repayable over 90 days, with similar fees.
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GTBank (Guaranty Trust Bank)
Offers Quick Credit, providing up to three months’ worth of salary (₦10,000 to ₦5 million) disbursed in under two minutes. Interest is about 1.75% per month. -
Zenith Bank
Provides Salary Advance loans to its salary account holders—up to 60% of monthly salary, at about 2.16% per month (26% per annum), with a 1% flat management fee. -
Access Bank (PayDay Loan)
Instant loan for salary and non-salary earners, with up to 31 days tenor, no collateral or documentation required. -
First Bank
Offers FirstAdvance, a salary advance for customers via the FirstMobile app (₦50,000–₦500,000, ~2.5% monthly interest, 30‑day tenor). -
Polaris Bank
Loans up to 50% of monthly income; intended for civil servants and employees of reputable firm -
UBA (United Bank for Africa)
Offers Click Credit, a salary-based personal loan without collateral (₦50,000–₦1 million, ~2% monthly, up to 12 months) -
Stanbic IBTC
Offers a revolving salary advance facility—once repaid, you can reuse it.
Microfinance Banks Offering Salary/Payday Advance Products
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Indulge Microfinance Bank
Salary Advance: For those earning ₦50,000–₂ₘₙ; 30-day tenor; flat 3% interest; no processing or management fees. Salary must be domiciled with the bank. -
Addosser Microfinance Bank
Salary advance for Lagos-based employees earning at least ₦65,000 net. Loan range: ₦70,000–₥1.5 million; tenor up to 12 months; optional collateral substitute accepted. -
Consumer Microfinance Bank
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Salary Advance: Up to 50% of net monthly salary; maximum tenor of 6 months. Requires salary domiciliation.
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Pay Day Loan: Overdraft of up to 70% of net salary, repaid on payday, for customers with salary domiciled at the bank.
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Assets Microfinance Bank
Offers two products:-
SALO Mini: Basic salary advance with quick turnaround.
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SALO Max: ₦500,000–₥5 million loans; 5% reducing interest; admin fee 1%; tenors between 30 and 360 days.
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Lovonus Microfinance Bank
Provides salary advance to government and private employees who domicile their salary through the bank. -
Aztec Microfinance Bank
Offers Aztec Salary Loan, a pay‑day loan for salary earners with no collateral required; includes e-banking. -
Prestige Microfinance Bank
Prestige Salary Advance: Loans up to ₦2 million, repaid within 6 months; 4% monthly interest plus 4% upfront fee; 48-hour turnaround. -
Alpha Kapital Microfinance Bank
Salary advance up to 100% of salary; tenor up to 6 months; 5% monthly interest with 5% upfront fee, no collateral; 48-hour processing. -
CIT Microfinance Bank
CIT Salary Advance: For emergency needs between paydays with accessible requirements; available nationwide.
Quick Summary Table
| Institution Type | Banks/MFBs Offering Salary/Payday Advance |
|---|---|
| Commercial Banks | Access Bank, GTBank, Zenith, First Bank, Polaris Bank, UBA, Stanbic IBTC |
| Microfinance Banks | Indulge MFB, Addosser MFB, Consumer MFB, Assets MFB, Lovonus MFB, Aztec MFB, Prestige MFB, Alpha Kapital MFB, CIT MFB |
Advantages of payday loan
Payday loans can be useful for short-term financial emergencies when accessed responsibly. Here are the key advantages of payday loans:
1. Quick Access to Cash
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Most payday loans are disbursed within minutes to hours.
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Useful in emergencies like medical bills, rent, or urgent repairs.
2. No Collateral Required
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Payday loans are unsecured, meaning you don’t need to pledge assets or property.
3. Minimal Documentation
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Usually requires just a valid ID, BVN, salary slip, or proof of income.
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Fast approval because there’s no lengthy paperwork.
4. Available to Low Credit Score Borrowers
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Many payday lenders don’t require high credit scores, making them accessible to people who may not qualify for traditional bank loans.
5. Flexible Usage
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You can use the money for any purpose—medical emergencies, school fees, rent, utility bills, etc.
6. Short-Term Commitment
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Loans are usually repaid on your next payday or within 30–90 days.
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No long-term debt burden.
7. 24/7 Application via Mobile Apps
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Many payday loans are available through online platforms and apps, allowing you to apply anytime, from anywhere.
8. May Improve Creditworthiness
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If reported to credit bureaus (like CRC or CreditRegistry in Nigeria), timely repayment can improve your credit history over time.
Use With Caution
While payday loans have these benefits, they also come with high interest rates and short repayment windows. Misusing them can lead to a debt trap.
What are the risks associated with payday loans?
Payday loans may offer quick cash, but they come with significant risks that borrowers need to understand before applying.
1. High Interest Rates & Fees
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Payday loans typically come with very high monthly interest rates (often 10%–30% or more).
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Annual Percentage Rates (APRs) can exceed 300%.
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Some lenders also charge processing fees, insurance premiums, or late fees, which add up fast.
2. Short Repayment Period
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Most payday loans must be repaid within 7–30 days.
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This short timeline puts pressure on your next paycheck and may lead to financial strain.
3. Debt Trap
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If you can’t repay on time, you may need to roll over the loan or take another one to cover the first.
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This cycle can lead to ongoing debt and heavy penalties, often called the “debt spiral”.
4. Negative Impact on Credit Score
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Defaulting on a payday loan can:
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Hurt your credit score (if reported to credit bureaus).
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Limit future access to loans from banks or regulated lenders.
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5. Aggressive Debt Collection Practices
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Some unregulated or illegal lenders may:
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Harass borrowers through calls, messages, or threats.
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Contact your employer, family, or friends, which is unethical and sometimes illegal.
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Nigeria’s FCCPC has warned against such practices.
6. Lack of Regulation (in Some Cases)
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Not all payday loan providers in Nigeria are CBN or FCCPC licensed.
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Borrowing from unlicensed lenders increases the risk of:
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Data misuse
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Fraud
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Illegal interest rates
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7. Invasion of Privacy
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Some apps request excessive phone permissions—accessing your contacts, messages, and photos.
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If you default, some may abuse this data to shame you publicly (this is illegal under Nigeria’s NDPR).
8. Hidden Charges
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Some lenders don’t fully disclose:
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Total repayment amount
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Insurance or admin fees
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This makes it hard to understand the true cost of the loan.
When to Avoid Payday Loans
Avoid them if:
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You already struggle to repay other debts.
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You’re relying on them for non-emergency needs (like shopping or entertainment).
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You haven’t read and understood all the terms and fees.
