FairMoney vs Carbon: which loan app is better in 2025 and how does Irorun compare?

Back when banks used to be the only way to get a loan in Nigeria, getting one felt like applying for a visa: plenty of paperwork, long queues, and a waiting game you couldn’t afford to play. But over the past few years, apps like FairMoney, Carbon, and Irorun have turned lending on its head. Today, with just a smartphone, you can get a loan in minutes.

But not all loan apps are created equal. Some are genuinely helpful, licensed, and transparent. Others? They’ll spam your entire contact list, call your boss, and still charge you sky-high interest.

In this article, we’re putting three of the most talked-about apps: FairMoney, Carbon, and the rising underdog, Irorun, side by side. If you’re wondering which one to use in 2025, let’s break it down by features, reliability, repayment policies, user experience, and more.

FairMoney started as a mobile lending app but has grown into a licensed microfinance bank (FairMoney MFB), regulated by the Central Bank of Nigeria (CBN). The app is available only on Android and has crossed over 10 million downloads on the Google Play Store. It offers personal loans, SME loans, savings accounts, bill payments, and virtual cards.

Key features

• Loan amounts: ₦1,500 to ₦3,000,000 (up to ₦5 million for business customers)
• Interest rates: Monthly interest from 2.5% to 30%, depending on credit profile and repayment history
• Loan tenure: 1 to 12 months
• Savings interest: Up to 30% annual interest for fixed plans
• Disbursement: Instant transfer to your bank account once approved
• Requirements: Android phone, BVN, valid ID, linked ATM card

Pros

• One of the few loan apps that doubles as a licensed bank
• Easy in-app savings options with high interest returns
• Transparent pricing with clear repayment terms
• Loans get larger and cheaper over time with good repayment behavior
• Offers cards and utility bill payment services

Cons

• No iOS app; iPhone users are left out entirely
• Some users complain about being forced to link their ATM cards even before getting approved
• Lower-tier users often get short loan tenures (as little as 7 days)
• Limited offline customer support channels

FairMoney works best for Android users looking for an end-to-end financial app: loans, savings, bills, and virtual banking, all in one place.

Carbon (formerly Paylater) was one of the first players to pioneer app-based lending in Nigeria. Over the years, it has evolved into a full-fledged digital bank, offering everything from loans to savings, investment, bill payments, debit cards, and free transfers. Carbon operates on both Android and iOS, giving it a wider reach than FairMoney.

Key features

• Loan amounts: ₦2,500 to ₦1,000,000
• Interest rates: From 4.5% to 30% per month, depending on your risk profile
• Loan tenure: 1 to 12 months
• Savings & investment: Offers Carbon Save and Carbon Grow for users to earn up to 15.5% per annum
• Cards: Virtual and physical debit cards with 1% cashback on POS transactions
• Disbursement: Instant to your bank account
• Requirements: Smartphone, BVN, valid ID, ATM card (for first-time users)

Pros

• Available on both Android and iOS
• Transparent pricing and improved credit scoring over time
• Cashback incentives on card spend (POS only)
• Offers more than just loans: digital banking, savings, investment, cards
• Simple user interface with a transaction history log for better financial tracking

Cons

• Interest rates can be high for new or low-score users (APR can go as high as 195%)
• Some users report delays in receiving debit cards
• Customer support is largely app-based and response times can be slow
• Requires linking ATM cards and validating bank account

Carbon is ideal for users who want more than a loan, those looking for an everyday digital financial solution. If you use your card often, the cashback bonus adds extra value.

Unlike FairMoney and Carbon, Irorun focuses on keeping lending ethical and user-friendly. The name "Irorun" means "ease" or "peace of mind" in Yoruba, and that’s exactly what they aim to provide. Irorun is fully licensed, does not shame users over late repayments, and keeps its terms simple. It doesn’t have savings features, cards, or bill payments for now. Instead, it focuses purely on lending, with a philosophy of respect and trust.

Key features

• Loan amounts: ₦5,000 to ₦50,000
• Interest rates: Monthly rates start at 5%
• Repayment terms: Flexible, based on borrower history
• Disbursement: Funds go to Irorun Wallet, and then can be withdrawn to any bank
• Repayment: Through app or via wallet deduction
• Requirements: Phone number, BVN, ID. No excessive data permissions required.

Pros

• No harassment or contact shaming even on defaults
• Friendly, minimalist interface designed for first-time borrowers
• Repayment flexibility: borrowers can choose to forgo overdue penalties after covering their principal and agreed interest
• Perfect for users new to credit or recovering from bad experiences with predatory apps

Cons

• Loan amounts are small, not suitable for high-value needs
• No iOS app as of now
• Doesn’t yet offer additional financial services like savings or cards
• Still growing; less visibility compared to FairMoney or Carbon

Irorun is best for people looking for a safe, respectful, and non-aggressive way to borrow, especially if you’re testing out digital credit for the first time.

It all boils down to your needs and values. Use FairMoney if you’re focused on getting larger loans and want a full-featured digital banking app with high-interest savings. But only if you’re on Android. Go with Carbon if you want cross-platform access, banking tools, and rewards like cashback. Just be ready to handle higher interest rates if you’re new. Try Irorun if you care more about ethical treatment, small but fast loans, and not having your phone contacts used against you. It’s ideal for those who’ve had negative experiences with other loan apps. No matter which you choose, remember: Loan apps are tools, not permanent solutions. Borrow responsibly. Understand the terms, repay on time, and avoid borrowing for consumption.