First impression of FairMoney digital bank’s instant loan app
Fairmoney is a digital bank that makes it easy to apply for a loan and have it delivered to your bank account within minutes. The features of Fairmoney loan app are quite similar to other instant loan apps except for some noteworthy features. The simplicity of the application, instant loan disbursement with no collateral needed, and a flexible repayment plan are fascinating.
This review tells you my impression of the FairMoney loan app. I guide you through five phases which are installation, integration, loan application. Next, I give my final thoughts on the app.
Download size of FairMoney bank loan app on google play store is 16MB. Small download size is good for faster download on potential user’s devices and less internet bandwidth. It has over 5 million downloads and has a 4.4 rating.
Registration and integration
Two things stood out while I was signing up on the FairMoney loan app. First, the advantages of the application are perfectly illustrated with illustrations. Second, the fact that FairMoney MFB is licensed by the Central Bank of Nigeria and deposits are insured by NDIC. This creates trust in the minds of users. The use of bright colors, friendly user interface and nifty app tricks is also commendable.
In line with the mandatory tiered KYC requirement of banks and OFIs, registration for the FairMoney loan application was gradual and comprehensive. So, without going to a bank branch, I was able to open a full-service Tier 2 bank account.
- I entered my phone number
- FairMoney sent my number one OTP
- then, automatically detected the OTP
This way, he was able to verify that I was indeed the holder of the telephone number. Phone number verification is the primary means of user identification and serves as the user’s account number in its database.
After verifying my number, it asked me for my bank account PIN which will be used to securely login to my account. Then I entered my BVN (which is optional, as users can continue without BVN) to speed up my account setup.
Then I had to allow the app to access my location and device for identity authentication to enable security. I also took a selfie to verify my identity. Then my account was created. Users who wish to upgrade their account to Level 3 must submit their residential address. These users had access to a daily transaction limit of up to ₦1,000,000. But to do this, the user needs to contact customer support via [email protected]. I think this is too much of a hassle as just providing a link on the app to submit my address should solve this problem. As a reward for joining, I was given ₦90.
On the FairMoney loan app, users can take out a loan, save, send and pay bills (airtime, data, electricity, internet or cable TV). Using any of these services will help the user establish their credit rating.
Getting a loan from a traditional bank is one of the daunting tasks anyone can do. To obtain a loan from a commercial bank, I would like:
- enter the bank branch.
- Convince the banker that I won’t default.
- Provide guarantees.
With platforms like FairMoney lending apps, the process is entirely different. I can access loans between ₦1,500 and ₦1,000,000 with repayment periods from 61 days to 18 months at monthly interest rates ranging from 2.5% to 30% (APR from 30% to 260% ).
A typical example of a FairMoney loan
Borrow ₦100,000 over 3 months
Interest (total loan cost): ₦30,000 (30% rate)
Three monthly repayments: ₦43,333
Total amount payable: ₦130,000
Representative: 120% APR
To get my first loan in 5 minutes, I clicked a button on the home screen. I have completed the form requesting personal information such as my first name, last name, email address, gender, date of birth, marital status, highest level of education, home address, and than the state and city I live in.
Next, I entered my job details such as job status, job category, employer name, start day, payday, and monthly salary. Next, I filled in my loan details with information such as the amount I needed, the purpose of the loan, and how I found out about FairMoney.
After these, I had to agree to the terms of the loan which included certain conditions:
I could apply for larger loans, get discounts, and spread my payment over installments if I repaid on time. Conversely, late payments resulted in an automatic debit, higher interest, and the defaulter being reported to the credit bureaus.
I clicked accept and submitted. Then I gave my consent to FairMoney to collect the following information
- Geolocation to make sure I am in Nigeria.
- List of contacts to perform a better risk assessment.
- SMS to validate my income for credit profiling.
- Apps installed to gauge my habit of using financial apps.
- Accounts to contact me by email.
- Storage to assess my habits and be able to make better credit scores.
- Calendar to better assess my application and offer me the best offers.
I gave them permission and they started processing the loan. I received feedback on loan offers available to me within 10 minutes (maybe due to my poor internet connection). I qualified for a loan of ₦35,000. The interest rate was ₦5250 and I had to repay within 2 weeks. After accepting the loan offer, my account was credited within 6 minutes.
Another thing about FairMoney…
I think digital credit banks offer slightly better deals than their competitors.
How quickly FairMoney advances loans. Before crediting digital banks like FairMoney, I would have to walk into a banking hall to apply for a loan. Submit warranty. Then wait months for the loan to be processed. But now all I have to do is log into my FairMoney loan app and apply for a loan. And in 10 minutes I have the money in any bank account of my choice.
There are other features of the FairMoney app that I haven’t been able to experience. Like saving, sending and paying bills.
However, I am having trouble with some things on the app. Every time I try to log in I have to verify my phone number and it requires an OTP code to be sent to my registered phone number. It may take a few minutes, which can be frustrating.
Also, the issue of granting FairMoney access to my contact list is not sufficient. According to FairMoney, they do this to perform a risk assessment. I am not comfortable with the idea of revealing my credit history/details to my contacts.
Nevertheless, competition in the field of credit loans is intensifying. FairMoney has put a solid foot forward in my opinion. For me, their 100 free bank transfers and flexible payment plan are winners for me. You can visit FairMoney.io to learn more about what they build.