Paylater Interest Rates - What's your experience?


Hi All,

If anyone here has used Paylater, I’d like us to compare interest rates on loan offers.

I decided to check them out today as I’m taking a general look at financial deepening and access to credit in Nigeria.

I entered a 300k loan request upon registration at a monthly income level > 160k

My own observation, given the offer (see screenshot) I was presented with, is that the rates may be too expensive (perhaps because of the lack of collateral) to encourage financial deepening and growth in the credit industry. Also, notice that the app totally ignores my 300k request.

Learning about your experiences may turn up a different view of things however.

Anyway, for now, I would prefer a focused/targeted solution, perhaps to the hundreds of thousands (unverified statistic) of young Nigerian professionals (Analysts, Lawyers, Consultants, etc) as it’ll invariably increase spending and lead to greater investment in the economy.

I think something like device financing should already be too easy for this group at this point but I’ve not come across any innovative/accessible/seamless plan yet.

Just thinking, maybe the BOI should look into this as part of their economic growth initiatives (demographic access to credit).


40% interest in 2 months is shocking :astonished: I assumed the interest rate would be between 4-5% per month.

If you have a decent and steady salary, you might be better off just going to a microfinance bank in Nigeria. Some don’t require collateral for small loans.


Very shocking indeed.

The Lagos State Employment Trust Fund provides loans of up to ₦500k (for Micro businesses) and ₦5mm (for SMEs) at a fixed interest rate of 5%.


Exactly. I believe LSETF are for business loans, and will need more paperwork etc. Even at that, the yeye banks don’t even charge that much interest per annum talk less about 2 months.

Some of these startups are taking advantage of the fact Nigerians are ill informed regarding finance (and investment) options because they consider Nigerian banks almost useless. I blame the banks for this. There is not enough literacy about finance from financial institutions in Nigeria.

@the_long_game Just go to the nearest Microfinance bank near you. You can even try your bank.


I think the longer the repayment period the higher the interest. I took 10,000 with interest of 1,500. I was offered higher loan amount with longer repayment periods and higher interest, but i declined.


The interest rate charged by lenders is a function of the risk they take.
Most of the new lenders aren’t banking institutions with depositors funds available to finance new loans, instead a lot of them are regulated moneylenders who have to source funds from the market.
The new online based lending startups also don’t usually require collateral which again increases the risk burden they face.
Btw the LSETF is funded primarily by the state, which allows if to charge relatively low interest rates on loans disbursed to businesses in Lagos.
Checkout StartCredits if you require interest rate information and loan requirements of lenders in Nigeria.