Banking services

Fairmoney vs Renmoney and Palmpay; Which Is The Best Loan App?

Access to credit and loans can be a struggle for many people. With traditional banks, the loan application process is often long and onerous, especially for those with little or no credit history. This is where loan apps have become an attractive alternative. Designed to provide quick access to short-term loans, these apps have exploded in popularity across Africa.

In Nigeria, three of the most popular loan apps are Fairmoney, Renmoney, and Palmpay. But which one is the best option for borrowers? In this post, we’ll compare the features and services of these top loan apps to help you decide which is the right choice for your lending needs.

Overview of the Loan Apps


Launched in 2017, Fairmoney is a digital lending platform that provides instant access to short-term loans. Borrowers can apply for loans ranging from ₦1,500 to ₦500,000 (~$4 to $1200) and receive funds immediately if approved. Fairmoney uses an algorithm to assess creditworthiness based on transactional data and advanced phone metrics. There are no paperwork or collateral requirements. Loans have terms of 15 to 180 days with an APR of 13% to 25%. Fairmoney also reports customer repayment history to credit bureaus to help borrowers build their credit profiles. The app has over 1 million downloads on Google Play.


Founded in 2016, Renmoney seeks to provide Nigeria’s “missing middle” with access to credit. The “missing middle” are those who earn too much to qualify for microloans but are excluded from traditional bank lending. Renmoney offers personal loans from ₦50,000 to ₦5 million (~$120 to $12,000) with 3 to 24 month terms. Borrowers can prequalify in minutes and receive disbursement in just 48 hours. The online platform uses alternative data sources, not just credit scores, to assess creditworthiness. Renmoney’s loans have interest rates starting at 3% per month. The company also reports repayment history to credit bureaus. Renmoney has given out over ₦45 billion in loans.


PalmPay launched in 2019 and has quickly become one of Nigeria’s most downloaded finance apps. In addition to loans, PalmPay offers a wide range of financial services including bank transfers, bill payments, investments, and cryptocurrency. PalmPay offers short-term personal loans up to ₦100,000 (~$240). Customers can apply and get funds directly into their PalmPay wallet. PalmPay evaluates lending eligibility using customer transaction history and account balances. Interest rates start at 10% per month. PalmPay also helps customers establish their credit profiles for future lending. The app has over 1 million downloads on Google Play.

Comparing Key Features

Loan Amounts

• Fairmoney offers the widest range of loan amounts from ₦1,500 to ₦500,000. This makes them a good option both for small, emergency borrowing needs or more substantial financing.

• Renmoney caters to larger loans for the “missing middle”, ranging from ₦50,000 to ₦5 million. The minimum ₦50,000 loan makes them less ideal for those seeking very small loans.

• PalmPay currently offers loans up to ₦100,000. This positions them for small, short-term borrowing but not high ticket financing.

Verdict: Fairmoney provides the most flexibility with microloans starting at just ₦1,500 as well as larger loans up to half a million naira.


• Fairmoney advertises instant loan disbursement as soon as the same day for approved borrowers.

• Renmoney also highlights fast processing, with borrowers able to get funds in as little as 48 hours after approval.

• PalmPay allows customers instant access to funds directly in their PalmPay wallet.

Verdict: All three apps offer rapid access to funds once approved. PalmPay may have a slight edge by disbursing directly into the user’s wallet.

Ease of Application

• Fairmoney touts a quick, 3-minute application process with no collateral requirements.

• Similarly, Renmoney advertises easy prequalification in just minutes with no paperwork.

• PalmPay also features a fast application that only uses customer transaction data.

Verdict: All three platforms emphasize speed and ease in applying for loans. They are evenly matched in offering fast, streamlined application processes.

Interest Rates and Fees

• Fairmoney’s APRs range from 13% to 25% based on the loan term, amount, and customer profile. No late fees are charged.

• Renmoney’s interest rates start at 3% per month. Origination fees depend on the loan amount and term. Late fees apply after a 7 day grace period.

• PalmPay’s monthly interest rates begin at 10%. No specific origination fees or late fees are listed.

Verdict: Renmoney offers the lowest starting interest rate at 3% monthly. However, PalmPay’s 10% is also competitive for the short-term loans it offers. Fairmoney’s APR structure may make it more affordable for larger, longer term loans.

Reporting to Credit Bureaus

• Fairmoney reports customer repayment history to credit bureaus to help improve borrowers’ creditworthiness.

• Renmoney also reports payment behavior so customers can build their profiles and become eligible for better loan terms over time.

• PalmPay states that borrowers can establish their credit histories but provides no specific details on credit bureau reporting.

Verdict: Fairmoney and Renmoney are both clear that they report payment data to bureaus, giving borrowers a chance to build credit. PalmPay lacks transparency on whether/how they report loans.

Other Financial Services

• Fairmoney focuses specifically on providing loans. They do not offer other financial services.

• Similarly, Renmoney specializes in loans and does not provide banking, payments, investments or other services.

• PalmPay offers an array of financial services beyond loans such as digital banking, bill pay, investments, and crypto services.

Verdict: PalmPay is the most versatile app with a wide range of finance tools beyond just lending. Fairmoney and Renmoney concentrate specifically on loans.

Frequently Asked Questions

Which loan app has the fastest approval process?

All three apps advertise quick approval times. PalmPay may have a slight edge by disbursing funds instantly into the user’s wallet versus bank transfer for Fairmoney and Renmoney. However, all three aim to provide funds within 48 hours or less.

What are the minimum and maximum loan amounts for each app?

Fairmoney: ₦1,500 to ₦500,000
Renmoney: ₦50,000 to ₦5 million
PalmPay: Up to ₦100,000

Do these apps perform credit checks?

No, none of the three apps perform traditional credit checks. All use alternative data like account transactions, airtime purchases, and phone usage to assess creditworthiness. This enables lending even to first time borrowers.

How long does it take to apply for a loan?

All three boast quick and easy sign-ups in just minutes. Customers can pre-qualify and complete the application process quickly via mobile app with minimal data input.

How quickly must the loans be repaid?

Loan terms vary. Fairmoney offers 15 to 180 days. Renmoney has 3 to 24 month repayment terms. PalmPay loans seem to be for very short term needs.

Can I pay off my loan early?

Yes, all three apps allow for early repayment without penalties. This allows customers to reduce interest costs.

Do late fees apply?

Fairmoney does not charge late fees. Renmoney charges fees after a 7 day grace period. PalmPay’s policy on late fees is unclear.

Are there origination or processing fees?

Fairmoney does not charge origination fees. Renmoney’s fees depend on loan size and term. PalmPay’s fees are unspecified.

Will these apps help improve my credit?

Fairmoney and Renmoney report loan repayment history to help customers build credit profiles. PalmPay is vague on credit bureau reporting.

Can I access other financial services through these apps?

No for Fairmoney and Renmoney which focus solely on lending. Yes for PalmPay which offers a suite of digital banking and investment services.


When reviewing Fairmoney, Renmoney, and Palmpay, there is no definitive winner. Each loan app has strengths depending on the specific financial needs of borrowers:

Fairmoney excels in offering the widest range of loan amounts, from small microloans to larger sums. Their credit bureau reporting also helps customers build their profiles.

Renmoney is ideal for mid-sized to large loans with competitive rates. Their focus on the “missing middle” makes them a good fit for that underserved demographic.

PalmPay is strong for those wanting an all-in-one finance app with loans as just one offering. Fast access to funds in a mobile wallet is a key benefit.

In summary, Fairmoney is best for flexible borrowing needs and building credit, Renmoney suits larger mid-size loans with good rates, and PalmPay is ideal for those wanting a multifunctional finance app. The “best” loan app depends on each user’s specific priorities and situation. With all three platforms continuing to evolve, Nigerian consumers have more choice than ever for accessing the financing they need.

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