Have you ever found yourself in a situation where you need a little extra cash to cover an unexpected expense? We've all been there, and it can be pretty stressful. But what if I told you there's a simple way to get a quick loan without all the hassle of traditional banks? Borrowing money in Nigeria has never been easier, thanks to Opay. How to borrow money from Opay?
In this article, I’m going to walk you through the steps on how to borrow money from Opay, so the next time life throws you a curveball, you'll know exactly what to do. Ready to learn how? Let’s dive in!
What is OPay?
OPay is a fintech mobile money operating company founded by Zhou Yahui in 2013, with headquarters in Ikeja, Lagos State, Nigeria. It was formerly known as Paycom Nigeria Limited and was licensed by the Central Bank of Nigeria in 2018.
OPay offers a wide range of financial services as follows:
- Mobile money transfers
- Bill payments
- Airtime top-ups
- Savings accounts.
The company aims to promote financial inclusion by providing accessible and affordable financial solutions to Nigerians, particularly the unbanked population.
As of 2021, OPay had over 5 million users in Nigeria and continues to grow rapidly. The company has also expanded to other African countries, such as Egypt, where it received approval from the Central Bank of Egypt to operate and issue prepaid cards. Read this article for more information on OPay’s current valuation.
OPay operates through a network of agents and merchants who provide services such as cash deposits, withdrawals, and bill payments.
The company offers POS terminals with low transaction fees to merchants, who can create online or POS merchant accounts.
How does the OPay loan service work?
The OPay Loan App Service simplifies the borrowing process through a user-friendly mobile application.
To get started,
- Download the OPay app from the Google Play Store or Apple App Store,
- Register an account, and
- Complete the necessary verification steps, including linking your Bank Verification Number (BVN).
Once verified, submit your application. Specify the desired loan amount and repayment terms. You can do this on the loan section of the OPay app.
OPay collaborates with trusted loan partners like EaseMoni and Okash to facilitate these loans. The platform does a quick assessment of your application and evaluates your creditworthiness using advanced algorithms.
Interested to know more about the partnership between EaseMoni and OPay? Check out this article.
If the loan is approved, the money will be deposited into your OPay wallet. You can access this fund immediately.
How to make the repayments?
You can repay the loan through the OPay app. Here you have two options:
- You can use the OPay balance for repayment or,
- Link a bank account for automatic deductions.
How to borrow money from OPay and what criteria does it consider for loan approval? Let’s discuss this in the next section.
How to borrow money from OPay: Eligibility Requirements
You must meet some specific requirements to be eligible for an OPay loan. Here are the key eligibility criteria:
- You must be a citizen of Nigeria.
- You must be at least 18 years old to apply for a loan.
- You must have a valid and active OPay account. If you don’t have one, download the OPay app and complete the registration process.
- You must have a verifiable source of monthly income.
- You must possess a valid Bank Verification Number (BVN). OPay uses the BVN to verify your identity and assess your creditworthiness. The BVN should be linked to an active bank account, preferably for at least three months.
- You must provide a valid form of ID, such as a National ID card, driver's license, or international passport.
- Your OPay account must be at least Tier 2 or above. This requires additional verification steps, including linking your BVN and providing identification.
- A positive credit history on the OPay platform can enhance your chances of loan approval. Maintain a good repayment record to increase their borrowing limits over time.
Suppose you meet the above eligibility requirements. Your next question would be “How to get a loan from OPay?”. Read the next section.
How to borrow loan from OPay? A Step-by-step guide
Follow the below steps to borrow money from OPay:
Step 1: Install the OPay App
- Visit the Google Play Store or Apple App Store and search for the OPay app. Then download it.
- Open the app and create an account by providing your mobile number. You will receive an OTP (One-Time Password) for verification. Enter the OTP to confirm your number and set a secure password.
Step 2: Access the Loan Feature
- Tap on the "Finance" button located at the bottom of the app interface.
- Choose "Okash," a subsidiary of OPay, to proceed with the loan application. This platform facilitates the loan process.
Step 3: Download and Install the Okash Loan App
- Download the Okash app directly from the Play Store and install it.
- Open the Okash app and register an account by providing the necessary personal information.
Step 4: Apply for the Loan
- Select the desired loan product that suits your financial needs.
- Fill in all required information, including the loan amount and repayment terms, then submit your application. You may receive a verification call if necessary.
Step 5: Approval and Disbursement
- Monitor the app for updates on your loan application status.
- If approved, you will receive an SMS notification regarding your loan status.
- Review and electronically sign the loan agreement to finalize the process.
- The approved loan amount will be disbursed to your OPay account shortly thereafter, allowing you immediate access to funds.
If you need further assistance on how to borrow money from OPay, watch this video.
Types of loans offered by OPay
OPay offers a variety of loan types to meet the diverse financial needs of its users. The primary loan options available through the OPay platform include:
1. Personal Loans
Personal loans through OPay are designed for individual users who need quick access to funds for personal expenses. These loans typically range from ₦5,000 to ₦100,000.
The application process is straightforward. You can apply for the loan through the OPay app. The amount available may increase over time based on your repayment history and creditworthiness.
2. Merchant Loans
Merchant loans cater specifically to OPay's business users, particularly those operating as POS agents. These loans can be classified into short-term and long-term options.
- Short-term Loans: These loans provide quick access to funds, usually with a repayment period of one day, and can go up to ₦1 million.
- Long-term Loans: These loans are available for amounts ranging from ₦1 million to ₦5 million, with repayment terms extending from 28 to 42 days.
Read this article for more information on merchant loans.
3. Other loans
- Cash Loans: These are short-term loans that provide users with immediate access to cash, which can be used for personal or business purposes.
- Airtime Loans: OPay users can borrow airtime to make calls or access the internet when they have insufficient funds in their accounts.
- Store Loans: These loans are specifically designed for OPay's merchant partners, allowing them to purchase inventory or invest in their businesses.
OPay Interest Rates
OPay offers a range of interest rates for its loan products, which vary depending on the specific loan service utilized.
The primary loan services associated with OPay are Easemoni and Okash, each with distinct interest rate structures.
Easemoni Loans:
The interest rates for loans through Easemoni typically range from 5% to 20%. The exact rate depends on factors such as:
- The loan amount,
- Duration, and
- The borrower’s creditworthiness.
Okash Loans: For loans processed through Okash, the interest rates are generally lower, starting from 3% and potentially going up to 30%, depending on the terms of the loan and the borrower’s profile.
OPay does not directly set these interest rates; the lending partners determine them based on the borrower’s credit score and repayment history.
A higher credit score may lead to more favorable rates, while a poor repayment history could result in higher charges.
Failure to repay loans on time can lead to increased interest rates and additional penalties, which may further complicate your financial situation. Therefore, you need to understand the OPay loan terms and manage repayments diligently to avoid incurring extra costs.
How to borrow money from OPay? Summary
OPay offers a convenient and accessible solution for customers to borrow money in Nigeria. You must understand the eligibility requirements and loan types available, to make informed decisions that align with your financial goals.
Repay your loans on time to improve your credit history and lower interest rates in the future. Visit the OPay website for more information about the app.
FAQs
1. Is OPay a wallet or a bank?
You can add money to your OPay wallet and transfer it to your bank accounts for free. Additionally, you can pay bills, top-up data, and borrow loans. So, OPay acts as a one-stop payment platform for many of your financial transactions.
2. How much can I borrow from OPay for the first time?
Typically you can borrow ₦100,000 for the first time. However, this amount varies depending on your credit score, financial history, and the specific loan product.
3. What are the interest rates for OPay loans?
OKash loans may have interest rates ranging from 3% to 30% depending on the loan duration and amount, while EaseMoni's rates can range from 5% to 20%. The interest rate may vary depending on the loan product too.
4. What will happen if I don’t repay the OPay loan on time?
Late OPay payments can result in additional charges and it lowers your credit score. If you don’t repay the loan for a long time, OPay can take legal action against you.