PayDey offers a convenient personal loan service in Nigeria, up to N50,000 don’t require collateral or a downpayment.
These loans are usually short-term and have very high interest rates.
PayDey loans should not be used to finance your lifestyle or pay off long-term debts. While short-term loans can be helpful for emergencies, they are more expensive than long-term loans. Therefore, you should use them with caution.
The app received mixed reviews from Google Play Store users after its first month. It uses a loan program to gather information about potential customers, including phone records, banking transaction alerts and BVN in order to determine each borrower’s credit score.
You will be able to get higher amounts if you keep your bank transaction messages up and have no outstanding debts from other loan apps.
It’s easy to apply. Just download the app from Google Play store and provide some information about you. The algorithm will analyze your data, calculate your credit score, and offer you a loan within a few hours.
You should note that simply binding your ATM card to N30 doesn’t guarantee you get a loan.
The N30 that was charged to attach your ATM card to your bank account is refundable. However, it can take up to 7 to 12 days for the money back to your bank account.
Your BVN is tied to your credit score. If you have an outstanding loan from another lender or have not paid other lenders on time, your application will be denied.
Credit scores are a record of all your borrowings and cash transactions.
To download the app, you must agree to allow it access to your phone contacts, SMS to view your banking transaction records, and apps on your smartphone to see how other loan apps are used.
Is PayDey a legit loan app or a scam?
PayDey is a legitimate loan app that offers micro loans up to N50,000. However, it has high interest rates and bugs that make registration difficult. Before you apply for an online loan, be cautious. Before you apply for an online loan in Nigeria, make sure to read reviews from other customers.
These loan applications are not registered with the CBN nor any other government agency in Nigeria. They are responsible for your transactions and you cannot seek redress for bad customer service.
Its availability on Google Play store does not guarantee that transactions made on it are secure. You are responsible for your security when using loan apps in Nigeria through the play store.
It takes time to disburse loans once approved. Some customers may take days or weeks to see alerts.
For new users, the loan term is only 7 days.
For small amounts of loan, very high interest rates
High rejection rate
PayDey Loan App: What are other borrowers saying?
Although the registration process is simple and straightforward, users may prefer a shorter review period before disbursement.
Ademola Omolola wrote: “This app is great I hope I get my loan easy access and no wasting time I hope they disburse money Pls try them they are nice.”
Oluwaseun Olaniyi wrote,”Excellent app. There is no time wasted. Rapid disbursal Reasonable interest rate Well done.”
Felicia Amadasun wrote: “Fast Disbursement am giving to you 3star because it is not yet credited. When I see it, I will complete the 2 stars keep using this app nice one.”
Be aware of your repayment plan when taking out a loan. The app may attempt to auto-debit you on the due date for the first installment of a 60-day loan. It might also charge you overdue fees before the end 60 days.
To prevent automatic debit, you can change the password for your ATM card. The app is known to auto-debit customers after they make payments via bank transfer.
Most of these apps are loan sharks and may threaten to send you messages calling your family members a fraudster if you default on your payment. If you have other options, it is better to avoid these apps.
What is the interest rate?
paydey offers the following services: Lending term: You will be asked to repay the loan in 91-365 days. Maximum loan amount: NGN 1,000 – NGN 100,000. Interest rates: Rates up to 2.5% per Month and as high as 30% per Annum
Example: Maximum loan amount: N10,000 Lender term: 91 days Lender interest = 10,000 x 2.5%x3 = 750 Repayment amount: 10,000 + 10,000 x 2.5%x3 = 10,750 Monthly repayment amount = (10,000 + 10,000)/3 = 3,583
As an example, the interest rate and tenure are lower if you borrow for the first time. By keeping good records and repaying the loan on time, you can increase your amount.
What are the requirements?
You can be a Nigerian citizen or resident.
At least 18 years of age
A monthly income source.
Attach your ATM card to the account
Give details about two of your closest relatives, including their telephone numbers.
You have a high credit score and no outstanding loans from any other lenders.
Maintain an active bank account
Your BVN must have your phone number.
You must have a valid ID card issued by the government.
What happens if I fail to repay my loan on time?
Late loan repayments are subject to a 2% daily fee. Therefore, it is important to adhere to the due date. You will be able to get larger loans if you repay the loan on time. You will not be eligible to receive larger loans or any other loan products if you make late repayments. You will be reported to First Central Credit Bureau if you are late with your payments. The First Central Credit Bureau could blacklist you, which may impact your ability to borrow money from other lenders.
Mr Olawale Olokede is a registered loan officer and worked for over 10 years as a senior financial consultant for accounting, finance and business management firms in Nigeria. Mr Olawale Olokede implemented and supervised financial and loan solution to Lagos based small and medium scale businesses after lecturing at the Lagos Business school. He is channeled his writing skills and passion for blogging to set up Lending Naija with over 50 reviews on different loan application and downloads.