Recently, there has been an increase in the number of instant loan services in Nigeria. which is really exciting. I think the introduction of the BVN played a major roll in encouraging these services. lenders don't have to worry too much about fraud, thanks to BVN. And each person can now have a credit score, to help lenders determine who is most likely to pay back a loan. In this article, I talking about an online loan service called FairMoney.

What Is FairMoney

FairMoney is an online lender that offers instant loans to eligible individuals without the need for collateral. No paperwork is needed when getting a loan from as the process is automated. It typically takes less than 5 mins to get a loan from them.

How Does FairMoney work

It works the same way as every other instant loan service. It checks your credit score and uses the information you provided during registration to determine if you meet its requirements to obtain a loan.

It does this by comparing the information you provided and those found in your bank. Your BVN is used to confirm your identity and to determine if you have any unpaid loans from other lenders.

It rewards early payment of loans with discounts. This means, if you pay before the loan deadline, you will get a discount for your loan. The earlier you pay, the better your discount. Late payment, however, will attract a late fee.

It also uses your bank account history and phone number to determine how much loan should be given to each person. All of this is automated and when using the App, you will have to accept its Privacy Policy. Basically given them access to the data on your phone. Which includes your SMS, Call Logs, location, etc. All of these are used to verify your identity and to ensure that you have a good credit score.

See Also: How To Get Instant Loan On 9mobile Without Collateral via Kwikcash

How To Get A Loan From FairMoney

In other to get a loan from this lender, you will need to have it's App installed on your Phone. The FairMoney app is available for download on the Play Store. After downloading the app, you will be required to sign up either through Facebook or by using your mobile number.

If you are signing up with your Facebook account, ensure that the details on your Facebook, like your name, age, etc. correspond to that on your bank.

If you choose to use your phone number, you will need to confirm that you own that number via an OTP(One Time Password). An OTP will be sent to your number. Which you will need to enter into the app. You will also be required to set a password.

After signing up, click on Apply. you will then need to answer a bunch of questions, although I found the questions to be a bit too long, you will only need to do this only once as your answers will be saved on the platform.

These questions include your Contact details, Personal Details, Work details, Guarantor details and loan purpose(optional).

Next, you will have to accept FairMoneys' privacy policy Which gives it access to your call log, SMS, location, etc.

After all this, you will then need to provide Your BVN number. This will be used to confirm your identity and to check if you have any unpaid loans from other lenders.

If FairMoney determines that it is okay to give you a loan. They will make you an offer. Which depends on the details that were collected from you. The loan interest rate ranges from 10% - 30% per month.

Sometimes, you may not qualify for a loan. In this case, you might not be eligible to get a loan. You can still apply for a loan later when you meet the requirements. As at the time of writing this article FairMoney loan offer Ranges from N1,500 – N150,000.

Here is a summary of how to get a loan on FairMoney

  • Download the FairMoney App
  • Sign up with your Facebook or Phone Number
  • Answer a few question questions
  • Confirm your identity
  • Accept Loan Offer

How To Payback your FairMoney Loan

To Payback your Loan, open the FairMoney app and click on pay. You can also do a bank direct transfer if you prefer. You can find their account details on the FairMoney website.

They also allow you to pay in installment if you prefer to spread your payment. If you use the bank transfer method, you will have to take a screenshot of your proof of payment and send it to them via E-mail.

Early Payment of loans is rewarded with discount and higher loan offers. To get a higher loan offer, you need to have made a number of early payments, such that the system trusts you enough to offer you a higher amount.

What If I Don't Pay My FairMoney Loan

If for some reason you are unable to pay your loan. Then there are some consequences for late payment.
Some of the consequences of Not paying your FairMoney Loan include

  • Payment of an additional 1.5% each day
  • You may be reported to the National credit bureaus
  • Your bank account may be automatically debited to payback your loan
  • Your FairMoney account may be suspended.

In my opinion, I will suggest that if you know you are unable to pay your loan, avoid taking a loan altogether. Whether its from FairMoney or any other lender for that matter. Because if you happen to default. It may ruin your credit score. This can have long term consequences and prevent you from getting a loan in the future.
If you have any question, please ask them in the comment below.

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