With over 5,000,000 users, and like Opay, PalmPay, and Moniepoint, FairMoney is a popular fintech app that provides access to banking, savings, investment, and loan services.
When it comes to loans, the process is similar to other loan apps-disbursement within about five minutes and no collateral required. However, it is important to note that their interest rates can be very high, in addition to other qualifying factors that determine loan approval.
In this guide, I will outline the factors that limit access to loans on FairMoney. I will also highlight the pros and cons, explain how the loan app works, and help you decide where to draw the line when using the app.
How the FairMoney Loan App Works
1. Get a Loan on the Same Mobile Device
The first step to getting a FairMoney loan is to install the mobile application on your device- either Android or iOS.
What do I mean by “Get a Loan on the First-Installed Mobile App Device”?
The first device you use to install the FairMoney app is the device from which you can request and receive a loan. For example, if you initially install the app on an Android phone and create your account there, you cannot log in on an iOS device and request a loan.
You must log back in on the Android device you used to create the account. The same applies if your first sign-up was on an iOS device.
If you lose your device, please contact customer support by email to enable access on a new device.
2. Provide Your BVN for KYC
After downloading the app, you must provide your BVN for KYC (Know Your Customer) verification to become eligible for loans.
3. Grant Access to Your Phone
You will need to grant the FairMoney app access to certain features on your phone, including your calendar, contacts, location, and more.
4. Accept the Loan Terms
You must accept the loan terms and conditions. I strongly recommend reading them carefully, as interest rates can go as high as 230% in some cases.
5. Interest on Overdue Loans
FairMoney charges penalty fees if you delay repayment.
Cons of Taking a Loan on FairMoney
- You cannot take a loan if you switch or log in from a different mobile operating system than the one used during registration.
- If your device is lost, you must email customer support to enable access on another device.
- Interest rates are high, especially for smaller loan amounts. Rates can reach up to 33%, with an APR ranging from 30% to 260%.
- There is a 1% management fee.
- New users cannot access loans above ₦100,000 – the limit is ₦70,000.
Pros of Taking a Loan on FairMoney
- The mobile app has a clean and user-friendly interface.
- Loans can be disbursed within five minutes.
- No collateral is required.
- The entire application process is completed online through the app.
- Higher loan amounts may attract lower interest rates, sometimes as low as 2.5%.
- The minimum repayment period is up to 60 days, compared to 30 days on some other apps.
- FairMoney offers personal loans of up to ₦3,000,000.
Why FairMoney Is Not Lending You Money
1. Multiple Devices
If you attempt to request loans using multiple devices, your application may be rejected.
2. Blocked Access to Phone Permissions
If you do not grant the app access to required features, such as your calendar, contacts, SMS, email, and location, you may not be eligible for a loan.
3. Mismatched Bank Profile
If there is a mismatch in your personal details (such as name, phone number, or BVN), your loan application may be declined.
4. Loan Repayment Defaults
If you have previously defaulted on repayments, future loan disbursements are not guaranteed.
5. Reported Profile to a Credit Bureau
If your banking profile has been reported for breaching the terms of service, your access to loans may be blocked. This may also affect your ability to obtain loans from other apps.
6. Insufficient Profile Information
If there is insufficient information on your phone activity (calls, SMS, etc.) for risk assessment, your loan application may be denied.
7. Low Banking Activity
If your bank account does not show consistent income or healthy cash inflow, your chances of approval may decrease.
Wrapping Up
With the above explanations, the question “Why is FairMoney not lending me money?” should now be clearer.
One important piece of advice: only take a loan if you truly need it. If you do, use it wisely and repay on time to remain eligible for higher amounts in the future. Late repayments can negatively affect your credit score.
Financial issues can quickly escalate due to repeated calls, recovery actions, and potential reporting to credit bureaus.
If the loan terms on FairMoney are not favorable, you may consider alternatives like Opay or PalmPay, which offer varying limits and conditions.
