Getting a Loan without BVN is rare in Nigeria. Gone at the days when loan apps are just getting incepted, borrowers can get loan without a bank verification number (BVN).
Those loan apps use alternative methods to assess borrowers' creditworthiness and verify identity, such as analyzing transaction history or other government-issued IDs.
Nowadays, many of these online loan apps will promise good loan amount, good interest rate and longer repayment plan but won't fulfill any it. Infact, some of the loan apps will promise to not require a BVN just to get you to obtain the Loan.
However, during the loan application, you'll realize that your BVN will be required, which will be a frustrating moment if you're seeking for a Loan with NIN-only. In addition, short time repayment plan and high interest rate will also be imposed to the loan.
Hence, it's important to research each online loan apps thoroughly, as interest rates and loan terms can vary significantly.
While BVN is a common requirement for many financial and loan services in Nigeria, no loan apps will provide a way to access quick and instant cash without having to collect your sensitive personal information including NIN and BVN.
Why Loan apps need BVN
1. KYC and Identity Verification
BVN is a unique identifier that helps loan apps verify the identity of borrowers as part of Know Your Customer (KYC) requirements. This allows them to confirm the borrower's identity and prevent fraud.
2. Credit Assessment
Loan apps use the BVN to access the borrower's credit history and financial information, which helps them assess the creditworthiness and risk profile of the applicant. This informs their lending decisions.
3. Regulatory Compliance
The Central Bank of Nigeria (CBN) and other regulators require financial institutions, including loan apps, to collect BVN as part of compliance measures. This helps monitor and regulate the lending industry.
4. Loan Tracking and Recovery
BVN allows loan apps to track borrowers' financial activities and facilitate loan repayments. This helps them manage loan portfolios and recover funds if needed.
The Bottom Line
In a nutshell, likewise online banking apps, getting a loan from any online lender in Nigeria will definitely requires a bank verification number (BVN). That's to say 99.99% of online loan apps are loan apps with BVN in Nigeria.
You'll hardly see a lender or loan app that'll disburse loan amount without collecting your Bank Verification Number (BVN) and National Identification Number (NIN).
However, if you've once gotten a loan without BVN from any lender (either online or offline) in Nigeria, let's know the lender in the comments section. We'll research the information and fact check it.