In the face of the ongoing challenges confronting Nigerians, many of us often find ourselves in urgent need of quick cash to address our immediate needs. That’s where Palmpay comes in. As one of the leading fintech platforms in Nigeria, Palmpay allows you to easily and quickly access loans of up to 200,000 Naira without any collateral and with or without a BVN, all from the comfort of your home to cover your personal and business needs.
In this article, I will be showing you the steps on how to borrow money from Palmpay. I’ll cover everything from the requirements for borrowing money from Palmpay to how much you can borrow from Palmpay. I will also discuss the interest rates on Palmpay loans, repayment options, and what happens if you default on your Palmpay loan, giving you all the information you need to make an informed decision about using the Palmpay loan app.
How to Borrow Money From Palmpay
If you are looking for a quick and short-term loan to cover your immediate needs, the following steps will guide you on how to borrow money on Palmpay app:
- Step 1: You need to download the PalmPay app and create your Palmpay account.
- Step 2: Log in to your PalmPay account through the mobile app. Once you are logged in, go to the homepage.
- Step 3: Click on the “Loans” tab located at the bottom of the homepage.
- Step 4: Find the “Flexi Cash” option within the Loans section and select “Borrow Now.”
- Step 5: If you’re a new user, you will have to fill out the loan application form. Make sure you are providing accurate details about yourself, including your name, phone number, and address.
- Step 6: Once your loan application is completed, you will see your current borrowing limit. However, you will be able to specify the amount you wish to borrow. The interest rates for any amount you select will be automatically displayed.
- Step 7: After selecting the amount you want to borrow, review the information you’ve provided in the loan application. Once you’re satisfied, click “Submit.”
- Step 8: Once you have submitted your loan application, PalmPay will review it. You can expect to receive notification of the loan’s approval or rejection within 5 minutes.
- Step 9: If approved, you will receive your fund within 5 seconds in your Palmpay account, or whichever bank account you specified in your loan application.
How to Borrow Money From Palmpay Without BVN
The Palmpay loan app is one of the few loan platforms that allow Nigerians to easily access quick loans without requesting for their Bank Verification Number (BVN).
However, you must know that there is a limit to how much you can borrow without your BVN. If you are looking to borrow small amounts, you can conveniently borrow on Palmpay without your BVN. But if you are looking to borrow huge funds, you must submit your BVN.
The following steps will guide you on how to borrow money from Palmpay without BVN:
- Step 1: Download the Palmpay app and create your Palmpay account.
- Step 2: Navigate to the ‘Loan’ section and select ‘Flexi Cash’.
- Step 3: Fill out the loan application form by providing your name, address and phone number. If you are asked to enter your BVN, simply click ‘Skip’.
- Step 4: You will see your loan amount limit, enter the amount you wish to borrow.
- Step 5: Review all the information about your loan, the loan amount, the interest rate, and the receiving account, and click ‘Submit’.
- Step 6: Once approved, you will receive your funds in your account within 5 seconds.
How to Borrow Money from Palmpay on iPhone
Borrowing money from Palmpay on iPhone is very easy. You don’t have to worry about getting an Android phone to borrow money from Palmpay because Palmpay is also available to iPhone users.
The following steps will guide you on how to get a loan from palmpay on iPhone:
- Step 1: Go to your app store and download the Palmpay mobile app.
- Step 2: Once your app is downloaded, open the app and create your Palmpay account.
Step 3: Log in to your Palmpay account on your mobile app.
- Step 4: At the bottom of the homepage, click ‘Loans’.
- Step 5: Once you are in the Loans section, select ‘Flexi Cash’ and click ‘Borrow Now”.
- Step 6: Fill out the loan application form by entering the required details.
- Step 7: Your available loan limit will be displayed, enter the amount you want to borrow.
- Step 8: Review all the information about your loan and click ‘Submit’.
- Step 9: If your loan is approved, you will receive your funds in your account within 5 seconds.
What are the Requirements for Palmpay Loans?
Not everyone can borrow money from Palmpay. To get a loan from Palmpay, you must meet the following requirements:
- Be a citizen of Nigerian and currently reside in Nigeria
- Have a functioning mobile phone, whether Android or iPhone
- Have an active PalmPay account
- Be 22 years old and above
- Have a valid BVN (optional)
- Have a valid means of identification (optional), like NIN, Driver’s License, or international passport.
While the BVN and means of identification are optional, they can help support your loan application and increase your credit limit.
What is Palmpay Flexi Credit Limit?
With Palmpay, you can access quick loans from as low as 1,000 up to 200,000. However, it is important to note that for every Palmpay account, there is a maximum amount you can borrow.
How much loan you can borrow from Palmpay depends on several factors, like your creditworthiness, usage history and verification status.
- Creditworthiness: During your loan application, Palmpay will do a background check on your credit history from Credit Bureaus in Nigeria to assess your creditworthiness based on factors such as your income, existing debts, and credit history. A positive credit history, indicating timely payments and responsible financial behaviour, can increase your likelihood of qualifying for higher loan amounts.
- Usage History: Palmpay also considers your usage history on the platform, including your transaction activity, frequency of app usage, and adherence to Palmpay’s terms and conditions. A consistent and active usage history may demonstrate your engagement with the platform and your reliability as a borrower, potentially influencing how much loan you can borrow.
- Verification Status: Verified users typically have access to higher loan limits compared to unverified users. Palmpay may verify your identity using your phone number, linking a bank account, or providing BVN or NIN as needed.
How Much Interest Will I Pay on Palmpay Loans?
Palmpay charges between 0.8% to 1.5% of your loan amount as the daily interest rate, which sums up to 15% to 18% of your loan amount. So how much interest you will pay on your palmpay loans will depend on your loan amount and the length of your loan.
If you apply for a 10,000 loan for 16 days, you may be charged an interest of 100 (1%) for the 16 days, which amounts to an interest of 1,600 (16% of 10,000).
It is also important to note that your interest rates will be determined by your credit score. If you have a strong credit score which reflects your responsible financial behaviour, you will get lower interest rates on your Palmpay loans. On the other hand, if you have a lower credit score, you will get high interest rates on your Palmpay loans.
What Happens If I Don’t Pay Palmpay Loans?
Failing to repay your Palmpay loans comes with numerous consequences that can be avoided by simply repaying your loans on the agreed-upon due date. If you fail to repay your loans by the due date, the following consequences may occur:
- Reporting to the Credit Bureau: If you fail to repay your PalmPay loan as agreed, PalmPay may have no choice but to report you to the Nigeria Credit Bureau. Once reported, you’ll be blacklisted, meaning you won’t be able to access loans from any financial institution in Nigeria until you settle your loan with accrued interest.
- Interest Rate Increase: Failure to pay off your loan on time may result in PalmPay increasing the interest rate of your loan by 20%.
- Negative Impact on Credit Score: Defaulting on your PalmPay loan payment negatively affects your credit score, potentially hindering your ability to access loans from Palmpay or other loan platforms in the future.
- Phone Blocking: If you fail to repay your PalmPay loan, the phone used during the loan application may be blocked. PalmPay has a security plugin that can restrict phone usage if loan repayment is not made.
- PalmPay Account Blocking: Another consequence is that your PalmPay account may be blocked, preventing you from borrowing money from PalmPay in the future.
- Risk of Arrest: PalmPay agents have previously arrested loan defaulters for failing to repay their loans. If you fail to pay your loan, you risk being arrested as your information, including your BVN, can be used to track you down.
How to Pay Back Your Loan on Palmpay
With Palmpay, repaying your loans is very easy. You can easily repay your loans before or on your agreed due date. You can choose any of the following methods to conveniently repay your Palmpay loans:
1. Repay Using Your PalmPay Balance: If you have money in your PalmPay account, you can use it to repay your loan effortlessly. To do this:
- Simply navigate to the ‘Loans’ section of the Palmpay app and click on the “Repay” button.
- Then initiate your repayment using your available PalmPay balance”.
- You can confirm by entering your Palmpay account pin.
However, if you don’t manually repay your loan before the due date, PalmPay will automatically deduct the loan amount from your account balance by the due date.
2. Automated Direct Debit (ADD): Another option for repaying your PalmPay loan easily is using the Automated Direct Debit that allows Palmpay to automatically remove your loan from your bank account. To set this up, simply set up automated loan repayments using your bank account details, such as a Debit (ATM) card.With ADD, you can easily ensure timely payments of your Palmpay loans without manual intervention.
Does Palmpay Give Loan?
Yes, Palmpay offers a loan service, also called Flexi Cash, that offers accessible and low-interest loan options to Nigerians who are faced with financial crises.
If you are looking for a quick and short-term loan to cover your immediate personal or business emergencies, the Palmpay loan app is your best bet. Palmpay loans allow you to access quick cash at low interest rates, without collateral and with or without your Bank Verification Number (BVN).
The loans are designed to be short-term (15 to 30 days), specifically to help you cover your financial needs till your next payday. You can get your loan decisions within 15 seconds, and if approved, you will receive your loans within 5 minutes.
Palmpay loan service is available 24 hours a day and 7 days a week. You can borrow from as low as 1,000 up to 200,000 via your mobile phone.
Can I Borrow Money from Palmpay?
Yes, you can borrow money from Palmpay. However, you must meet the requirements for Palmpay loans. You must be 22 years and above, a Nigerian citizen residing in Nigeria, and must have a functioning mobile phone and a Palmpay account.
Palmpay USSD Code for Loans
The Palmpay USSD code for Loans is *652#.
To use the Palmpay USSD loan code:
- Dial *652# from your phone number linked to your PalmPay account.
- Choose the “loan” option.
- Simply follow the prompts to apply for and receive your loan in your Palmpay account.
How Much Can I Borrow From Palmpay For The First Time?
With Palmpay, the maximum amount you can borrow for the first time is 10,000 Naira. Palmpay has a low borrowing limit for its first-time users. But with each loan you take, and every early repayment, your loan limit is increased up to 100%.
Therefore, it is safe to say you the flexibility to apply for and receive loans ranging from as low as 1,000 Naira up to 200,000 Naira.
How Can I Contact Palmpay?
If you have any issues or concerns concerning your Palmpay loans and want to contact Palmpay customer service, you can reach them through the following:
- Email: [email protected]
- Customer Care Number: 018886888
- Website: www.palmpay.com
Conclusion
Knowing how to borrow money from Palmpay is crucial knowledge that can prove invaluable when you require financial assistance. Whether it’s for school expenses, food and groceries, business, or family emergencies, Palmpay loans offer a convenient solution to access quick cash when needed.
With just a mobile phone and internet connection, you can securely obtain a legitimate loan from Palmpay, knowing that they are authorized by the CBN and insured by the NDIC.