Last Updated on March 11, 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
nk for a certain period, usually between 3 to 6 months.
| Bank | Eligibility Criteria | Application Method |
|---|---|---|
| Access Bank | Salary account active for 6 months, minimum salary of ₦30,000 | USSD code *901*11#, QuickBucks app |
| Fidelity Bank | Salary account active for 3 months | Digital application |
| GTBank | Salary account active for 3 months | Mobile app, USSD |
| First Bank | Salary account active for 3 months | Mobile app, USSD |
| Union Bank | Salary account active for 3 months | Mobile app, USSD |
Here are some Nigerian banks that offer payday and salary advance loans:
- Zenith Bank:
- Offers a salary advance facility that allows customers to access up to 60% of their salary at a relatively low-interest rate.
- GTBank (GTCO):
- Provides the Quick Credit loan option, which allows customers to borrow up to ₦5 million with funds disbursed within two hours of approval.
- Access Bank:
- Offers Quick Bucks, a mobile app that provides multiple quick and low-interest loan options.
- Sterling Bank:
- Provides the Quick Loan (Specta) for both salaried and non-salaried individuals.
- UBA (United Bank for Africa):
- Offers Click Credit, which allows borrowers to get a loan of up to ₦5 million.
- FCMB (First City Monument Bank):
- Provides Fast Cash, a convenient, paperless credit facility with no collateral required.
- First Bank of Nigeria:
- Offers Personal Loan Against Salary to help cover pressing financial obligations before payday.
MFBs that offers payday and salary advance loan in Nigeria
Here are some Microfinance Banks (MFBs) in Nigeria that offer payday and salary advance loans:
- Lapo Microfinance Bank
- Nirsal Microfinance Bank
- Purple Money Microfinance Bank
- CIT Microfinance Bank
- AB Microfinance Bank
- Grooming Microfinance Bank
- Addosser Microfinance Bank
- Asset Microfinance Bank
- Bowen Microfinance Bank
- Capstone Microfinance Bank
- Cardinal Rock Microfinance Bank
- Cashconnect Microfinance Bank Ltd
- Cedar Microfinance Bank
- Chanelle Microfinance Bank
- Corestep Microfinance Bank
- Cowries Microfinance Bank
- Credit Afrique Microfinance Bank
- Credit Express Microfinance Bank
- Crossover Microfinance Bank
- Daylight Microfinance Bank
- Desmonarchy Microfinance Bank Limited
- Echo Microfinance Bank
- Edo Microfinance Bank
- Empire Trust Microfinance Bank
- Enrich Microfinance Bank Limited
- FFS Microfinance Bank
- Finatrust Microfinance Bank
- Finex Microfinance Bank
- First Option Microfinance Bank
- Flourish Microfinance Bank
- Fortress Microfinance Bank
- Giant Strides Microfinance Bank
- Global Initiative Microfinance Bank
- Glory Microfinance Bank
These MFBs cater to salary earners, providing them with loans that can be repaid at a later date
Advantages of payday loan
Payday loans can offer several advantages, especially in urgent financial situations. Here are some reasons why people might consider payday loans:
- Quick Access to Cash: Payday loans provide almost immediate access to funds, which can be crucial in emergency situations like medical bills, car repairs, or other unexpected expenses.
- Minimal Requirements: The application process is typically straightforward, with minimal documentation required. This makes it accessible even to those who might not qualify for traditional bank loans.
- Short-Term Solution: These loans are designed to be repaid quickly, often by the next paycheck. This short repayment period can be appealing for those who need a temporary financial bridge.
- No Credit Check: Many payday lenders do not perform a credit check, making it an option for individuals with poor or no credit history.
- Convenience: Payday loans can often be obtained online, making the process convenient and quick.
However, it’s important to note that payday loans often come with very high interest rates and fees. They should be used cautiously and only when absolutely necessary. If not managed well, they can lead to a cycle of debt.
What are the risks associated with payday loans?
Payday loans can be helpful in urgent financial situations, but they come with significant risks. Here are some of the key risks associated with payday loans:
- High-Interest Rates: Payday loans often carry extremely high-interest rates and fees, sometimes equivalent to an annual percentage rate (APR) of 400% or more. This can make the loan very expensive.
- Debt Cycle: Due to the short repayment period, typically two weeks, borrowers may find themselves unable to repay the loan on time. This can lead to borrowing additional loans to cover the original loan, creating a cycle of debt.
- Hidden Fees: Some payday loans come with hidden fees or charges that aren’t immediately apparent. These fees can add up quickly and make repayment even more difficult.
- Impact on Credit Score: If you fail to repay a payday loan, it can negatively affect your credit score, making it harder to obtain other forms of credit in the future.
- Limited Borrowing Amounts: Payday loans usually have a low borrowing limit, which might not be sufficient to cover larger financial emergencies.
- Aggressive Collection Practices: Some payday lenders may employ aggressive or harassing collection practices if borrowers default on their loans. This can add stress and financial pressure.
- Short Repayment Period: The short-term nature of payday loans means borrowers often have to repay the entire amount within a few weeks, which can be challenging for those already facing financial difficulties.
It’s important to carefully consider these risks before taking out a payday loan. If possible, explore alternative financing options that may be more affordable and have fewer risks.
