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Whether you need N50,000 tomorrow or an urgent N2,000, Irorun is one of the top loan apps in Nigeria, helping you borrow money online easily, and with low interest.

At Irorun, we understand your needs and, as you continue to repay your loans, we reward loyal customers with higher loan limits up to ₦50,000, low interest rates, and exciting perks like birthday gifts and bonuses for referring friends to borrow easily and meet their financial needs with us.

We reward our loyal customers with special perks, including interest-free loans for a limited time, so you can meet urgent needs without worrying about high interest rates.

With only a few clicks on your smartphone, you can
pay all of your bills and top up your airtime at the
lowest possible cost.

We will never misuse your data, resort to shady debt collectors, or harass your friends and family. If you are having issues with your repayment just reach out to us. We are always here to help.

Loans in Nigeria are easier to get than ever, yet often harder to live with once the repayment cycle begins. Apps promise speed and simplicity, but what many borrowers discover is that the interest sometimes stack faster than their income grows. That tension has made low-interest loans a daily calculation of survival.

What stands out in this environment is how sharply needs differ. A trader may only need a small amount  to restock goods without losing all her margin to charges. A graduate managing NYSC allowance wants credit that won’t double before payday arrives. Small business owners look for financing that can grow with them rather than eat into their profits before they’ve even scaled. For each of these groups, interest rate is the deciding factor between progress and a setback.

This is why low-interest loans have become a filter for trust. Nigerians are less swayed by the promise of “instant approval” and more by whether a platform will respect their repayment ability. The lenders that meet this test are few, and knowing where to find them is the difference between borrowing that works for you and works against you.

## Understanding the cost of borrowing

The interest rate shown on a loan app is rarely the full story. A ₦10,000 loan advertised at 10% might look like it will cost just ₦1,000, but once you add a ₦400 processing fee, the actual cost rises to ₦1,400, 14% in effect. If  the repayment date is missed, penalties push that even higher. Some lenders also use very short tenors, like 7 to 15 days, which makes the annual percentage rate (APR) skyrocket when calculated over a year. 

For example, a ₦5,000 loan at 15% for 10 days costs ₦750, but repeated over 12 months that translates to an APR above 500%. This gap between the advertised rate and the true cost is why so many borrowers end up repaying far more than they expected. The only way to stay ahead is to read terms carefully and always calculate the total repayment.

## Low-interest loan apps in Nigeria

Here’s a clear look at the loan apps  transforming Nigeria’s digital loan market with low interest rates:
- **Irorun**: Built to reward trust and consistency, Irorun starts users with small loans from ₦1,000 and grows access up to ₦500,000 for loyal borrowers. Interest reduces over time from about 10% for first loans to as low as 0% for “Supreme” users. Fees are transparent, disbursement is instant, and repayment is flexible..
- **Branch**: This lender offers ₦2,000 to ₦1 million, with interest that varies by risk profile (17%–40% monthly). It is well regarded for its quick approvals and straightforward terms, but its rates can be high for new or higher-risk borrowers.
- **Carbon**: Provides ₦2,500 to ₦1 million at 4.5%–30% monthly interest. Beyond loans, it doubles as a financial hub with investments, payments, and bill settlement in one app. This makes it a more comprehensive option for users who want multiple services in a single platform.
- **Okash**: Ranges from ₦3,000 to ₦1 million but charges 3%–15% daily, which can escalate annual rates to 360%. Its approval rate is rapid with minimal requirements, making it attractive in emergencies, though the costs are steep.
- **Palmcredit**: This loan app offers ₦10,000 to ₦300,000 with monthly interest between 14% and 24%. It is known for fast disbursement, but like Okash, the compromise is higher borrowing costs compared to more affordable apps.
- **Migo**:This Integrates with banks and telecommunications companies, allowing loans with minimal paperwork and interest starting at about 5%. Its value is in reaching users who may not have access to formal financial services, expanding credit inclusion.
- **Kuda**: This app functions as a digital bank and extends overdrafts and loans up to ₦150,000. The charges are flexible and relatively low, making it appealing for users who want both banking and borrowing in one place.
- **QuickCheck**: Offers ₦1,500 to ₦500,000 with interest ranging from 2% to 30% monthly. It uses AI to assess risk, allowing quick approvals and strong security features. It is a reliable choice for borrowers seeking smarter, more transparent credit.
- **KwikPay and sycamore**: A loan app that is a newer entrant but competitive which offers clear terms, transparent pricing, and flexible repayment structures. They cater to users looking for alternatives to the bigger players, with flexibility for urgent needs or more structured borrowing.

## Tips for getting the best low-interest loans in Nigeria

Securing a loan with low interest is more than just finding an app that advertises cheap rates. Borrowers can take deliberate steps to improve their chances of accessing the best offers and using them wisely. Here’s how: 
- **Improve your creditworthiness**: Lenders often reward reliable borrowers with better rates. Paying bills on time, reducing outstanding debts, and avoiding multiple concurrent loans can make you appear less risky.
- **Pick suitable loan terms**: A loan should match your financial reality. Shorter repayment periods may reduce total costs, while longer terms offer flexibility but may increase the amount you pay in the long run.
- **Compare fees beyond interest rates**: Some loans with low advertised interest carry hidden charges like processing fees, late penalties, or insurance costs. Reviewing the full fee structure helps avoid unpleasant surprises.
- **Use loans purposefully**: Borrowing should align with clear financial goals such as investing in education, a business, or urgent expenses, rather than covering impulse spending. Purposeful borrowing helps ensure repayment discipline.
- **Leverage app features**: Many loan apps provide repayment reminders, auto-debit options, and credit score tracking. Taking advantage of these features reduces the risk of late payments and builds a positive borrowing history.

## Smart borrowing beyond low rates

Getting the best low-interest loan in Nigeria goes beyond spotting a low rate on paper. It requires understanding your credit profile, carefully comparing terms and hidden fees, and using the loan responsibly to achieve a clear financial goal. By also taking advantage of app features like reminders and flexible repayment options, borrowers can avoid unnecessary strain. In the end, the smartest loan is the one that fits into your long-term financial stability.


Where to get loans with low interest in Nigeria

Have you been struggling with navigating loan repayment?

All that struggle is about to be history

In this article, we’ll show you 4 ways to repay loans on Irorun.

Let’s dive in, shall we?

## Fund your Irorun virtual account via debit card
To use this method, you need a valid Mastercard or Visa card (unfortunately, Verve cards are not accepted) alongside a unique link created for you.

When you click on this link, you’ll be redirected to a payment gateway page where you’ll be required to input your card details which include: card number, card expiry date and CVV (the three-digit number on the back of your debit card).

Once that is done, a confirmation email or message will be sent to you with a code to verify that yes! you are the one making the transaction (the email or phone number will be the one connected to your card/bank account).

Read more: [10 interesting facts about loans
](https://irorun.com/blog/10-interesting-facts-about-loans)

## Bank transfer to your Irorun virtual account
This might just be the most common method of funding an Irorun wallet account (right after using a debit card, of course).

This method is quite easy. When you originally log in to your Irorun web or mobile app as you, your Irorun-issued virtual account detail is on your dashboard (AKA Sparkle account).

Copy this account detail and input it into your bank app to make the transfer. The details given to you will include an account name and an account number unique to your Irorun account.

As long as you use the virtual account created for you upon your registration, you will be able to make transfers for your loan repayment.

Read more: [What does it mean when your loan is pending?
](https://irorun.com/blog/what-does-it-mean-when-your-loan-is-pending)

## Fund your Irorun virtual account via USSD
This method is a lot like the bank transfer method but without the use of the bank app. Every bank has a unique USSD code that allows you to carry out bank transactions (transfers, bill payments, buying airtime etc.) without the bank app and need for data.

First, you copy your virtual account number from your dashboard when logged in and then you make a transfer to that account using your respective bank USSD code.

This method is great for individuals who can’t access mobile data and are short on time.

Read more: [What’s next for the newly adopted student loan act?
](https://irorun.com/blog/whats-next-newly-adopted-student-loan-act)

## Use the payment link
This fourth option is a combination of all three(3) options above. All Irorun users are assigned a unique link that is either used to make loan payments directly or indirectly as in friends and family. Here’s how others can help you pay back your Irorun loan.

Once this link is clicked, the user is shown three(3) options with which to make payments. These options are:

- Pay with bank transfer: Once you choose this method, you’ll be given your Irorun wallet account details to make a bank transfer.
- Pay with card: This method redirects you to a payment gateway page where you are required to input your card details.
- Pay with USSD: With this method, you’ll be required to make a bank transfer to your Irorun virtual account using your bank’s associated USSD code.

Read more: [4 Financial scams to watch out for
](https://irorun.com/blog/4-financial-scams-to-watch-out-for)
…

Now that you’re well acquainted with how to repay your loan. Let’s find out what could possibly go wrong if one fails to pay back their loan and also the benefits of timely loan repayment.

## Woes of avoiding your loan obligation
- A formal report will be made to the credit bureau and one ends up on a hard-to-wipe-off blacklist
- Court charges and multiple fines to pay, which end up being more of a financial constraint
- Ruined reputation and thus make it increasingly hard to get loans from other lenders
- Credit score takes a hit (as much as 110 points from just one missed payment) and this lowers one’s chance of getting favourable loan terms (large loan amounts and low-interest rates) and loans from other lenders in general
- Accumulation of extra debt in the form of late payment fees or prepayment fees (depending on your perceived offence).

Read more: [What happens when you take out a loan but don’t use it?
](https://irorun.com/blog/what-happens-when-you-take-out-a-loan-but-don%E2%80%99t-use-it)

## Benefits of timely loan repayment
- Credit score gets a boost which increases chances of favourable loan terms
- One gains a trustworthy reputation in the lending world, this increases the chance of lenders willing to trust you with their money
- One attains a more stable financial position allowing them to save up money, and have all debts cleared off while maintaining a good standard of living
- Less feeling of anxiety and stress (no more hide and seek with lenders).

Read more: [5 facts Irorun first-time users should know
](https://irorun.com/blog/5-facts-Irorun-first-time-users-should-know)
…

As always, we’re available to answer all your loan-related questions and assist you in applying for your first loan. Send us a message at [support@irorun.com](mailto:support@irorun.com) and let’s get you started!

4 ways to repay loans on Irorun

For generations, Nigerians have relied on community-based contribution systems like ajo in the southwest, esusu among the Yoruba, or adashe in the north. The idea was simple: a group of people came together, contributed fixed amounts daily or weekly, and rotated payouts to each member until everyone had taken their turn. It was savings, credit, and community trust rolled into one.

These systems were the backbone of many households and businesses. Traders used them to restock goods, workers relied on them to pay rent or school fees, and families leaned on them for weddings or emergencies. Unlike banks, there was no collateral, no paperwork, and no intimidating bureaucracy. Just trust, discipline, and the promise that your turn would come.

## Where daily contributions fall short
As practical as they were, contribution systems had serious weaknesses. Trust could be easily broken if a member defaulted or disappeared after collecting their share. Payouts were not always timely, and the fixed cycle meant that emergencies couldn’t always wait for your turn. Record-keeping was usually manual, which made mistakes common. And with urban migration, changing jobs, and increasingly busy lives, many people no longer have the tight-knit communities required to sustain traditional ajo or adashe.

For today’s rapidly changing Nigeria where emergencies don’t wait and cash flow is unpredictable, these gaps became too costly. This is where loan apps have started filling the void.

## The rise of loan apps as the new “digital contribution”
Loan apps in Nigeria rose to solve the same problems that contribution groups were meant to address: quick access to cash without collateral and with minimal barriers. With just a smartphone, Nigerians can now borrow small or medium sums in minutes, repay in flexible terms, and even build a digital credit record.

Where ajo depended on human trust, loan apps depend on technology and data. Instead of a physical collector coming to your stall or office every day, an app records your borrowing and repayment automatically. And instead of waiting months for your turn, the money arrives instantly when you need it.

This shift explains why many traders, workers, and even students who once relied on contributions are now turning to loan apps as their first option.

## Why Nigerians are making the switch
- **Instant access to cash**: The biggest draw is speed. With contributions, you had to wait for your cycle. With a loan app, your emergency is covered immediately. That difference matters when you need to pay school fees tomorrow or replace stock in your shop before customers move elsewhere.
- **No risk of default from others**: In contribution groups, one person’s irresponsibility could collapse the system. Loan apps remove that communal dependency. You are in control of your own borrowing and repayment without relying on others.
- **Flexibility of amounts**: Traditional ajo contributions required fixed daily or weekly payments, which could be difficult when income was irregular. Loan apps let you borrow only what you need and repay according to your situation.
- **Digital record-keeping**: Instead of manual notebooks, everything is tracked digitally. This not only prevents disputes but also helps borrowers build a credit history that can unlock higher limits over time.
- **Wider reach**: Loan apps don’t require physical presence or a known circle of friends. A factory worker in Lagos, a trader in Kano, or a teacher in Aba can all access credit at the same speed.

## The cultural adjustment
Still, the transition hasn’t been completely smooth. Many Nigerians remain wary of digital platforms due to stories of predatory interest rates and public shaming tactics by disreputable loan providers. Contribution systems felt safer because they were rooted in trust and familiarity.

This cultural hesitancy explains why the best loan apps are those that balance speed with transparency. Nigerians want the reliability of ajo with the efficiency of technology. They want to know the rules upfront, avoid hidden fees, and feel confident that their data is safe.

## Irorun and the future of digital borrowing
Among the growing number of loan apps, Irorun has managed to capture this balance. For people used to contributions, Irorun feels familiar because it provides the same small, everyday loans that ajo and esusu once covered; only faster, safer, and without dependence on a group.

With loan amounts ranging from ₦1,000 to ₦50,000, disbursed almost instantly, it is especially useful for individuals who need quick relief for daily expenses. Repayment is structured in a way that fits Nigeria’s common salary or income cycles, reducing the stress of defaults. And for consistent users who repay on time, Irorun unlocks higher credit limits, turning what begins as emergency support into a reliable financial partner.

This makes Irorun more than just a loan app. It is, in many ways, the modern ajo: digital, efficient, and trustworthy. By keeping things simple and transparent, it has become a natural bridge for Nigerians moving from traditional contributions to modern credit solutions. [Apply for a stress-free loan now
](https://irorun.com/)

How loan apps are replacing daily contributions (‘ajo’, ‘esusu’, or ‘adashe’) in Nigeria

Have you ever wondered why interest rates may vary with each loan? And sometimes you immediately conclude “you’re being cheated.”

Well, that’s definitely not the case. No responsible lender is out to cheat you of your money. But certain factors could influence a lender’s decision on your interest rate.

Let’s jump right in 

## Type of loan
The type of loan you take out also affects your interest rate. Unsecured loans tend to have a higher interest rate than secured loans, this is because secured loans usually have collateral (usually a valuable item pledged to secure a loan) as a fallback in cases of the borrower being unable to pay their debt.

## Tenor of loan
Tenor refers to the length of time until the loan is due. For example, when you take out a five-year loan, you have a five-year tenor. Once you’re three years into repaying the loan, you have a two-year tenor.

In general, the longer your loan term, the less your interest rate will be. Loans with shorter terms usually have higher interest rates than loans with longer terms. In addition, loans for asset finance usually have lower interest rates.

## Operational expenses
Not all lenders are born equal. Some are manual and their cost per loan is high because of the human factor. This cost is passed to borrowers as fees and interest rates.

However, lenders with good tech and therefore a lower cost of operation usually charge a lower interest rate..

## Credit history and credit score
At this point, we might sound like a broken record with the number of times we mention “credit history” and “credit score” but the truth of the matter is, they hold a lot of importance in the lending world.

Your creditworthiness and history with other lenders can determine if you deserve a high or low-interest rate. It’s almost like being a devoted customer in your favorite store, if you go there enough times they’ll start to give you little benefits like a discount.

With a clean credit history and a good credit score, you have the opportunity of getting lower interest rates which reduces the amount you’d have to pay back. Really, won’t you prefer to have a 5% interest rate on your loan than, say, a 7% interest rate?

## Current employment history
Your current employment history also affects a lender’s decision on your interest rate. It’s generally believed that persons who have a noticeably stable job with high income seem more likely to repay loans as against someone who constantly changes jobs or has a low income and as such the former receives better interest rates.

If there’s a noticeable peak in your current employment status, your lender can determine how well you can handle a large loan with a high or low-interest rate, without default. Job stability is therefore essential if you wish to apply for a large loan.

## Debt-to-income rate
You may have come across this phrase in your search for more information about lending. The debt-to-income ratio is a measure of debt settlement to income, that is, how much debt you have to pay against your monthly income. When salary come, how much you go use pay bills and wetin remain after?

It’s highly advisable to calculate and be certain of your debt-to-income ratio before deciding to take out a loan with any lender. Someone with a high debt settlement, greater than their income is most likely to be rejected for a loan or given a high-interest rate.

## Economic inflation
A surge in economic inflation can have a rebound effect on the lender’s interest rate causing it to be higher than what it would normally be.

Economic inflation refers to the general exaggerated increase in the prices of goods and services. Remember that your lender is first a business owner and so loan interest rates could increase because they need to keep their business afloat as well.

Inflation affects a lot of services(of which lending is a part) in an economy, as such adjustments will be made accordingly, a lender isn’t going to remain stagnant while the economy is changing and causing a negative ripple effect in their business.

…

Now that we’ve shared these highly coveted *secrets* with you, send us a message at support@irorun.com and let’s get you started on your first loan!

What influences the interest rates for loans?

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Irorun Blog

Where to get loans with low interest in Nigeria

4 ways to repay loans on Irorun

How loan apps are replacing daily contributions (‘ajo’, ‘esusu’, or ‘adashe’) in Nigeria

What influences the interest rates for loans?

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