Review: Palmcredit app needs more clarification on its interest rates and deductions

Palmcredit is one of the loan apps that provides easier access to loans compared to commercial banks in Nigeria. While many of them have come under heavy criticism in recent times, especially due to their unconventional means of loan collection, many Nigerians continue to patronize them for emergency fund needs.

In fact, the operation of loan applications such as Palmcredit has been the saving grace for many Nigerians facing financial difficulties. Yet, all has not been rosy for users when it comes to the features of the app that gives them access to instant loans.

But first, the Palmcredit app has a lot going for it. One is the fact that the app is very lightweight at 9.6MB hence quick to download and takes up less space on users’ phones. The blue and white design of the app is also beautiful and the interface is quite easy to navigate.

It is no surprise that the app has been downloaded over 5 million times by Nigerians looking for easy and instant loans. Surprisingly, the app is not available on the Apple Store which means only Android users can use it.

Access credit on the app

To access the credit on the application, you must register on the application after downloading. When registering, you will need to provide:

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  • Your personal information
  • Your biometric verification number (BVN)
  • Your bank account details
  • Your phone number
  • your occupation

Also, you may need to verify your phone number. Palmcredit will send a code to your mobile phone. All you have to do is enter the code in the app to complete the verification process.

After these, you can then apply for a loan. According to the company, users can get an instant loan ranging from NGN 10,000 to NGN 300,000 and the app offers flexible repayment between 91 days and 365 days.

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Interest rate

Palmcredit’s monthly interest rate ranges from 4% to 4.7%, while loan interest rates range from 14% to 24%. The annual percentage rate (APR) on a Palmcredit loan is 48% to 56%.

User complaints

Although this app continues to meet the financial needs of many Nigerians, the user experience on the app has not been 100% smooth. Some of the user complaints include unauthorized debits on their accounts and an app showing debt even after the lender has repaid their loans.

Some are frustrated that their accounts were debited even after their loans were paid off, while customer service kept changing days to resolve the issue. For others, their grouse is that the app has failed to deliver on its promise to extend its credit limit beyond N35,000 despite being loyal users for over two years and the promise applying for a loan of up to N300,000 for its clients.

The app is also criticized for raising its interest rate arbitrarily. However, the app’s customer service response to such complaints was that “the interest rate is generated by the system based on your credit score.


Based on the large number of downloads at over 5 million and a rating of 4.3 by 171,947 app users, it’s safe to say that Palmcredit meets the needs of its customers. However, the app will need to be more transparent about its loan offers. Users should also be familiar with its interest rate mechanism in advance, rather than explaining terms after loans have been taken out and deductions have been made.

Lance B. Holton