When I first heard about digital lending apps in Nigeria, I was very skeptical. Having struggled with financial issues in the past, I wanted to be certain any lending platform I used was legitimate and followed the proper regulations. That’s why I decided to thoroughly research Branch Loan, one of the most popular lending apps, to see if it was a viable and responsible option.
In this article, I will breakdown everything you need to know about Branch Loan, including how to download, sign up, check interest rates, understand their loan codes, and determine if it is really a legitimate and Central Bank of Nigeria approved lending platform. By the end, you’ll have a full understanding of whether Branch can be a helpful tool for your own financial needs or if you need to look elsewhere.
What is Branch Loan?
Branch Loan is a digital lending platform that allows users in Nigeria to apply for and receive short term loans directly from their smartphones.
Founded in 2020, they have quickly grown to become one of the largest lending apps in the country. Branch differentiates itself from other lenders by offering a completely digital, hassle-free application and approval process that can have funds deposited into a user’s bank account within minutes once approved.
Downloading and Signing Up for Branch Loan
To get started, you will first need to download the Branch Loan app from the Google Play Store or Apple App Store.
Once downloaded, open the app and follow the onboarding process to set up your profile. You will be asked to provide your name, phone number, address, bank account details, and employment information. Branch will also need access to some permissions on your phone like contacts, camera, and location to verify your identity. Once your profile is completed, it is time to submit your first loan application.
How to apply for Branch Loan app
To apply for a loan, go to the “Apply” section of the Branch app. Here you will see they provide loans ranging from 30,000 to 300,000 Naira. Select the amount you need and your preferred loan duration which can be anywhere from 5 to 30 days.
You will then need to provide details on what the loan is for like bills, rent, emergencies etc. Branch uses this plus your credit history to instantly decision your loan application. Decisions are made within seconds!
Branch Interest Rates & Fees
While Branch offers convenient service, you do not want to take out loans without understanding the full cost. Their interest rates vary depending on your creditworthiness but generally range between 2-5% per month.
On a 100,000 Naira 30-day loan, for example, the totalrepayable amount with interest would be around 105,000 Naira. There are no hidden or additional fees either. Branch is fully transparent about rates upfront so you know exactly what is owed. Just be sure not to miss repayment deadlines to avoid penalties.
Once approved, you can check your loan status and transaction history in the Branch app. Here you will see codes associated with any funds sent or received. For instance, an “LA” code means the loan amount was disbursed while “IR” refers to an interest repayment installment. Being able to track installments and due dates helps keep you on top of your loan responsibilities. Simply remember – the sooner a loan is repaid, the less interest accrues.
Is Branch Loan Legitimate?
As Branch Loan operates within Nigeria’s regulatory guidelines for digital lenders, it can be considered a legitimate lending platform. While no lending platform is without risks, Branch Loan appears to be operating legally and helping many Nigerians access small, short-term loans responsibly. Just be sure to only borrow what you can comfortably repay on time.
Conclusion
In conclusion, Branch Loan offers a simple, digital-first way to apply for and receive small loans directly from your phone. While interest rates are higher than traditional banks, they are fully disclosed upfront with no tricks.
By carefully reviewing loan amounts, dates and educating yourself on all terms, Branch can be a reliable option when in need of emergency or short-term funds. Always remember to repay on time to avoid any penalties and protect your credit health long term. Let me know if you have any other questions!
FAQs
Is the branch loan app approved by CBN?
Yes, Branch International Financial Services Limited, the company behind the Branch loan app, is one of the digital lending apps that has been fully approved by the Federal Competition and Consumer Protection Commission (FCCPC) to operate in Nigeria.
What happens if I’m unable to repay branch loan on time?
If a payment is missed, Branch will first send payment reminders via app notification, calls and SMS. If the loan remains unpaid after 7 days, a small penalty fee of 1% interest per week on the outstanding amount will be charged until repayment. It is best to avoid late payments by setting calendar reminders ahead of due dates. Non-payment of several loans could also impact future credit approval amounts or terms.
