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Paga Loan: How to Borrow Money on Paga App, Paga Loan Codes and USSD Codes

When I first heard about Paga loan, I was intrigued but also skeptical. As a university student living in Lagos, there were times when small financial emergencies would come up and I didn’t have the funds to cover them. I wanted to know if Paga loan could be a feasible short-term solution. 

My initial experience applying for a Paga loan was straightforward. I downloaded the Paga app, registered with my phone number and email, and linked my bank account. Within the app, I selected the “Loan” option and was able to apply for up to N30,000 based on my transaction history and repayment capacity. I received a notification that my application was approved and the funds were deposited directly into my bank account! It was impressive how simple and quick the process was.

Getting a Paga loan helped me cover an unexpected school bill without having to ask family for money. While convenient, I also realized I needed to carefully manage my repayments to avoid excessive interest charges. In this article, I’ll provide a detailed guide on how Paga loans work and give you tips to use them responsibly.

What is Paga Loan?

Paga Loan is a digital short-term credit service offered by Paga, a leading fintech company in Nigeria. It allows individuals to easily access small loans ranging from N5,000 to N500,000 directly from their mobile phone. Some key things to know:

  • Loans are processed instantly once approved with funds deposited directly into your linked bank account. 
  • Repayment periods range from 1 to 6 months depending on the loan amount.
  • Interest rates range from 2%-5% per month which works out to annual rates of 24%-60%.
  • Late or missed payments result in penalty fees on top of interest charges.
  • Applicants’ creditworthiness is determined based on their Paga transaction history and CBN blacklist check.
  • Loan applications can be made directly within the Paga app or via USSD codes without paperwork.
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In summary, Paga loan provides a convenient option for bridging short-term cash flow gaps. However, it’s important to only borrow what you can comfortably repay to avoid unwieldy debt.

How to Apply for a Paga Loan

There are two main ways to apply for a Paga loan – via the Paga mobile app or USSD codes:

Via the Paga Mobile App

1. Download the Paga app from the Google Play Store or Apple App Store if you don’t already have it. 

2. Register for a Paga account by providing your phone number, full name, and email.

3. Link your bank account details to your Paga profile for loan disbursement and repayment.

4. Go to the “Loan” section on the app menu and select the amount you want to borrow. 

5. Review the interest rate and repayment details before submitting your application.

6. Provide additional details like employment info if requested. 

7. You’ll receive instant notification on approval with funds deposited to your bank account.

Via USSD Codes 

1. Dial *242*11*Loan Amount e.g. *242*11*5000 from your phone.  

2. Select option 1 to apply for a loan.

3. Provide your name, phone number and bank details.

4. Review the loan amount, interest rate and repayment plan.

5. Select “Yes” to accept and the loan will be instantly approved and dispersed to your bank account.

So in summary, Paga loans can be quickly accessed either via the app’s intuitive interface or basic phone USSD codes for feature phone users.


For safe, instant access to small amounts of digital credit, Paga loan serves an important need for many Nigerians. By following responsible usage guidance and being aware of alternatives, it can help bridge temporary cash flow issues without long term debt implications if managed prudently. Overall, Paga loan provides a valuable financial inclusion solution when utilized carefully for short term needs.

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What is the code for Paga loan?

The USSD code for Paga loan is *242#.

Is there a penalty for early loan repayment on Paga?

No, there is no penalty for prepaying or settling your Paga loan earlier than the agreed repayment period. In fact, it reduces your total interest cost. You can generate a loan repayment code within the app to make a full or part prepayment at any time.

In conclusion, I hope this comprehensive guide has equipped you with valuable insights into how Paga loans work as well as tips for benefitting responsibly from the convenience it offers. Please feel free to let me know if you have any other questions!

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