Payday Loan: Banks Offering Payday Loans and Their Requirements

Last Updated on Mar 23rd, 2024

In the recent past, getting a payday loan from a commercial bank required a lot of paperwork and bureaucracy with the availability of collateral and a guarantor. This process usually took weeks or sometimes even months, thereby draining the loan applicant physically and mentally.

The emergence of fintech companies changed the landscape of how lenders offered loans in Nigeria. With the help of mobile technology, the fintech companies were able to disburse loans in minutes with no paperwork or guarantor. It led to fast exponential growth in the credit industry with the Credit Bureau of Nigeria and the administration of Bank Verification Number (BVN) playing significant roles respectively.

In a bid to compete with financial technology companies, Nigerian commercial banks are launching quick and accessible payday loan platforms. They offer easy and fast loans to their customers without collateral and with a very low-interest rate as their trademark.

In contrast to the old practice of granting loans with high-interest rate loans with loads of paperwork and a list of guarantors, among others, commercial banks now provide quick loans. One of the significant ways they offer these loans is through salary advances in fast and straightforward ways. They termed these payday loans.

What is a Payday Loan?

A Payday Loan is an amount of money lent at an agreed interest rate, and repayment is expected when the borrower receives his next salary.

Nigerian Banks with Payday Loan Offerings

1. Access Bank Payday Loan

With Access bank Payday loan, customers can enjoy the loan facility at low interest rates with no paperwork or collateral needed.

This loan service is available to both salary and non-salary earners. It helps meet the emergency needs of customers at any time before their next payday.

Access bank payday loan

Access Bank USSD Code

The Access Bank payday loan is a 24/7 service that requires neither your physical presence in the bank nor any paperwork. It is an unsecured loan. This means that you are not required to provide any collateral.

You can access this loan in minutes using the Access Bank payday loan code – *901*11# or *426*11#. You can also use other channels like the Access Bank Internet Banking platform, WhatsApp Banking, or the Access Mobile App.

2. GTBank Payday Loan

GTBank launched the GTBank payday loan and Quick Credit loan platforms to provide funds of up to N5m in a few minutes to its customers.

The salary advance payday loan is only available to customers whose salary account is domiciled in the bank. They must have received a salary from the same employer in the past three months.

The quick credit, on the other hand, is available to both salary and non-salary earners, and you can get between the sum of N10,000 and a maximum of N5m.

With no hidden charges, the bank charges an interest rate of 1.33% per month. This makes it a very cheap and competitive loan facility.

Requirements for Accessing a GT Bank Payday Loan

  • Applicants must earn a minimum of N25,000 for the public sector and N50,000 for the private sector.
  • Thirty days tenor for a salary advance platform. Renewable every month
  • For applicants who are not salaried earners, you must have had an inflow of a minimum of N20,000 to your account in the last six months.
  • Applicants should be at least 18 years of age.
  • Convenient repayment plan between 3 to 12 months

To apply for salary advance instantly, use the GT Bank payday loan code – *737*8*2# to begin but to confirm your eligibility and request for a quick credit loan immediately, dial *737*51*51#.

GT Bank Salary Advance and Quick Credit are readily available on all GTBank online and mobile banking platforms (Internet Banking, GTWorld, GTBank Mobile App, and Habari App).

3. Polaris Bank Salary Advance/Payday Loan

With Polaris salary advance payday loan, you can access up to 70% of your next salary in advance.

Loans can be processed and disbursed in less than 2 minutes using the Polaris USSD payday loan code *833*12#. See other USSD code for loans in Nigeria.

Disbursed funds can also be accessed 24/7 via ATM or your mobile device using USSD codes, PolarisMobile and PolarisXperience.

Requirements for Accessing The Polaris Payday Loan

  • Applicants must be in the employment of any reputable organizations in either the private or public sectors.
  • Customers’ salary accounts must be domiciled with Polaris Bank.
  • Other Terms and conditions apply.

4. Zenith Bank Payday Loan

Zenith Bank offers its customers the Zenith bank loan – a scheme designed to meet short-term expenses that may come up before the next payday. It is one of the top loan products offered by banks in Nigeria. Confirmed salary account holders of the bank can use the Zenith bank payday loan USSD code – *966# to access it.

Zenith bank payday loan

Zenith Bank Loan Eligibility

  • The salary and allowances of the customer must be domiciled in Zenith Bank.
  • The bank has an Indemnity clause in its loan contract, giving the bank the Right to set off in any other bank using BVN. Upon payment default, they have the right to deduct your loan amount due to the customer’s different bank accounts. You can learn more about professional indemnity insurance.
  • As an applicant, you can borrow up to 60% of your monthly salary.

Is It Advisable To Take A Payday Loan?

Payday loans are great for a quick fix. However, it is not advisable to make it a habit. They should not be a go-to solution for ongoing debts or recurring bills.

If you have a financial need, be sure to get all the facts before you consider borrowing against your next paycheck. It’s best to cross-examine your financial situation for smarter ways to free up any extra money or responsibilities before opting for a payday loan.

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