You could come across loan sharks in Ghana, you should try as much as possible to avoid them when sourcing for a loan. Wrong decisions with a lender or financial institution can be detrimental when applying for a loan. Making thorough research on lenders or financial institutions is very important, as this helps you to avoid getting into the wrong hands amidst financial problems. If you are struggling with financial issues today, a loan shark is not a good idea for your financial challenges. Read on to see what you need to know about loan sharks in Ghana.

What are loan sharks?

Loan sharks are illegal lenders who usually target desperate families and loan-income individuals. Usually, they are always friendly at first, but borrowing from them can be detrimental. Also, a loan shark is an illegal money-lender whose business is to profit from lending money to people. They do not have a licence and have no regulation from any authorities. A loan shark might be a friend of yours or an acquaintance. There might even be someone around your area lending money to people. They always deal in cash and rarely provide any paperwork, but always demand very high interest rates. 

Read also: Who is a lender? Everything you should know

Why should you not consider loan sharks?

Loan sharks charge a very high interest rate on loans, they can charge as high as 100% interest on the principal amount. They always give loans at a very high price, which is very risky regarding loan repayment. One bad thing about loan sharks is that they can harass and threaten you on repayment. Mounting pressure on you to borrow more loans to pay for outstanding loans. This may lead you into spiral debt you can never repay.

How to identify a loan shark

When a lender/financial institution offers little or no paperwork, like a credit agreement repayment record or option. Then know that the loan is from a loan shark, as it means you need to sign a credit agreement before getting your loan. Also, when they refuse to give information on the interest rate or how much you need to repay. However, also note that when a lender collects documents like passports, driving licences and bank cards as security.  Loan sharks increase charges because there is no credit agreement during the application of a loan. Watch it when a lender refuses to allow you to settle your debt when due. They also threatened and intimidated their customers.

How to know whether a lender is legitimate

In Ghana, the Financial Conduct Authority (FCA) keeps records of all allowed lenders. Therefore, if a lender is not on the list as having a current authorisation to lend money. This is a sign for you not to borrow money from such a lender. Always check a lender on FCA before applying for a loan with any lender in Ghana. Although many loan sharks always engage in intimidation and even violence with their customers. However, they are not beyond the law in Ghana, so note that any lender harassing you is against the law.

Note: Some loan sharks will threaten you with prosecution and even send you to prison if you don’t pay up. But know that an unauthorised lender like a loan shark has no legal right to recover a debt with prosecution. This is because the loan shark is illegal.

How to report a loan shark in Ghana

You might wonder how you could report a loan shark when you see one. Whenever someone you think is a loan shark approaches you, report them to the police right away.

What are the alternatives to loan sharks in Ghana?

Faced with financial challenges, you may probably have poor credit. Maybe you just need a small amount of money for a short while. Rather than go to a loan shark, check out some instant loans in Ghana. Also, there are reputable lenders in Ghana you can turn to. Some lenders include:

1. Credit unions

You should borrow from a credit union, though they may tell you to become a member. Also, they may request you to save a specific amount of money before you can borrow.

2. Help from the government

If you are seriously in need of cash in Ghana, ensure you are getting all the entitlement due to you. However, not just anyhow entitlement, but the right entitlement.

3. Budgeting Loan from the Social Fund

Whenever you desperately need to borrow, you can apply for an interest-free budgeting loan from the Social Fund.

Note: Loan sharking is illegal, but when you borrow from a loan shark, you have not broken the law, but they have.

Check out the following related link:

• Best loan apps in Ghana 2021

Conclusion

Loan sharks in Ghana currently are making a killing in this current economic climate. However, according to sources within the banking industry, most banks have rather cut down interest on lending.

This means that the government must do much more to help the local economy. The government has to consider setting up a financial strategy that would help people from the low income group to have access to cheap credit. Although some of these funds are already in existence. But sadly, they lack proper management and disbursement. Meanwhile, those who have tried through funds set up previously complain of bureaucracy and excessive paperwork. 

However, if you cannot make repayments, loan sharks often threaten violence or request valuable items as an alternative to repayment. Sometimes, they force you to do favours for them, which may lead you into criminal activity. Instead of borrowing with loan sharks, you can always source loans from a legitimate financial institution.

You can buy a house in Ghana and pay monthly. You should know that one of the biggest purchases you will ever make is purchasing a home. Since owning a home represents security and money, many people strive to reach this goal. You might purchase a home in Ghana if you’re thinking about doing so. Ghanaian homes cost, on average, $11,000 less than most other nations. Additionally, there are advantages for foreigners who want to purchase real estate in the nation. This post will walk you through the procedure of purchasing real estate in Ghana while making monthly payments.

The History of Ghanaian Real Estate

The value of real estate in Ghana has skyrocketed in recent years. One of the fastest-growing economies in Africa is Ghana, and the rise in real estate values is evidence of this expansion.

In Ghana, the average cost of a home is roughly $11,000. (USD). Some people might think this is a hefty price. However, it is far less expensive than in other nations. For instance, a typical Norwegian property costs roughly $278,000 USD.

Additionally, there are incentives for foreigners who want to purchase real estate in Ghana. They may give foreign nationals preference when applying for visas and work permits. If they buy property worth more than $2 million, they can also be qualified for various tax exemptions. However, the government would not offer any incentives to foreigners who invest in real estate or land in metropolitan areas.

House Prices In Ghana

In Ghana, a home may cost anything from $11,000 to ‌$200,000. This is substantially less expensive than most other nations on the planet. In Ghana, a brand-new home costs, on average, $11,000. There are several investment loans for real estate you can consider taking to finance your purchase.

How to Find a House in Ghana

Finding a property is the first step in buying a house in Ghana. You should probably work with a real estate professional who can assist you in locating residences that suit your requirements. Getting referrals from friends or family members is the greatest approach to finding an agent. Once you’ve located a few agents, schedule appointments with them to see which one suits you the best.

When you’re ready to view homes, confirm that the realtor has access to the neighborhood you’re interested in. If they don’t offer this service in their package, you could have to pay extra for it. Once you’ve viewed a few homes, choose the one you like most, and your agent will assist you in drafting an offer on behalf of your business or yourself.

How to Make Monthly Repayment for Your House In Ghana

Calculating how much cash you’ll need each month if you’re purchasing a home on a payment plan is crucial. You’ll need to know the overall cost, the interest rate, and the payment schedule. There are alternatives to making the initial down payment on the house if you cannot afford to do so. Purchasing a house with long-term installment plans is one option. This implies that you can make monthly payments over several years until the total cost of your property has been settled.

This choice might be preferable to outright purchasing a house, depending on your income in Ghanaian cedi and US dollars. Offering an indirect mortgage from a different nation is an additional option for purchasing a home. This might be possible if you had sufficient funds in another nation or a dollar account. It’s crucial to remember that prices can change depending on the location and ownership of the property when looking at houses for sale in Ghana. Make sure the rates you agree upon with Ghanaian property sellers are just and reasonable so that both sides are content with the outcome of the discussions.

How Much Is a Downpayment on a House in Ghana?

They require a 20% down payment, and a 20-year loan term is the maximum. Besides that, they also require a processing fee. And it is 1.5% of the proposed loan amount for Ghanaians and USD250/GBP150 for non-resident Ghanaians.

Can a Noncitizen Buy a House in Ghana?

If you wonder if a foreigner can buy property in Ghana, the answer is “Yes”. In Ghana, there are no limitations on foreigners purchasing real estate. However, it is crucial to consider the nation’s land’s previously described categorization, as some land kinds cannot be privately owned.

How Much Can It Cost to Get a Two-Bedroom Apartment In Ghana?

You can buy house in Ghana and pay monthly. In Ghana, a two-bedroom apartment can range from GH₵2,000 to GH₵3,000. This spans a wide variety. Its location also influenced a two-bedroom apartment’s cost. You should budget between GH₵2,500 and GH₵3,500 if you want to rent a two-bedroom apartment in Accra. However, ‌expect to pay between GH₵1,500 and GH₵2,500 to rent a two-bedroom flat in Kumasi.

How Much is the Cheapest House in Ghana?

The most affordable price for a house in Ghana is GH₵21,756. While the most costly one is GH₵967,017,940. Verified real estate agents, homeowners, and well-known real estate developers have listed these homes.

Buying a House in Ghana and Paying Monthly: Pros and Cons

Buying a house in Ghana and paying for it on a monthly basis, often through a mortgage or installment plan, can be a viable option for those looking to invest in real estate. Like any other financial decision, buying a house in Ghana comes with both pros and cons. Below, we outline the pros and cons of this approach:

Pros

• Homeownership: Owning a house provides a sense of security and stability. It allows you to establish roots and create a permanent residence for yourself and your family.
• Long-Term Investment: Real estate often appreciates in value over time. Buying a property can be a valuable long-term investment, potentially offering a return on investment when you decide to sell.
• Monthly Payments: Paying for a house in monthly installments can make homeownership more accessible. It allows you to spread the cost over several years, reducing the need for a substantial upfront payment.
• Predictable Expenses: With a fixed-rate mortgage, your monthly payments remain stable, making it easier to budget and plan for other expenses.
• Tax Benefits: In some cases, you may be eligible for tax benefits or deductions related to your mortgage interest payments, potentially reducing your overall tax liability.
• Asset Ownership: As you make monthly payments, you gradually build equity in your home. This asset can be leveraged in the future for other financial opportunities.

Cons

• Interest Costs: Mortgages typically come with interest payments, which can significantly increase the overall cost of your home over the life of the loan.
• Financial Commitment: Buying a house is a long-term financial commitment. If you face unexpected financial challenges, keeping up with monthly payments can become a burden.
• Down Payment: While monthly payments are spread out, you may still need to make a substantial down payment initially, which can be a significant financial hurdle.
• Market Fluctuations: Real estate markets can fluctuate. The value of your property may not always appreciate as expected, potentially impacting your investment returns.
• Risk of Default: Failing to make mortgage payments can result in foreclosure, leading to the loss of your home and damage to your credit.
• Maintenance Costs: As a homeowner, you are responsible for maintenance and repair costs, which can be unpredictable and add to your overall housing expenses.
• Opportunity Cost: Funds tied up in your home could be invested elsewhere for potentially higher returns. Real estate investments may not always outperform other investment options.

Before deciding to buy a house in Ghana and pay monthly, it’s essential to carefully assess your financial situation, future plans, and overall objectives. Consider factors like your income stability, the local real estate market, and your ability to manage ongoing homeownership expenses. Additionally, consulting with a financial advisor and conducting thorough research can help you make an informed decision that aligns with your financial goals and lifestyle.

Conclusion

You must understand Ghanaian real estate history if you intend to purchase a home here and make monthly payments. Ghana’s government has been working to develop ways to control the market as house prices have been rising for some time. So, once you’ve found a home, make sure you’re prepared to make monthly payments to avoid any issues.

Online searches are the most effective approach to finding a home in Ghana, but if you prefer more specialized help, ‌consult your friends and coworkers. Be cautious when searching for a home because, after you purchase one, it may be nearly impossible to sell it.

There are online loans in Ghana without collateral you can access. Traditional lenders always compete with online loan platforms for customers. Online loan providers have a lot of benefits, which has led to their rapid client growth. Now, to begin with, internet loan lenders don’t require collateral, which discourages consumers from applying for bank loans. Therefore, online loans in Ghana without collateral are a lifeline for those without security for the money they need.

In Ghana, there is no shortage of lending apps, and if you have a smartphone, getting a loan is quick and easy. Simply register, submit a loan request, and receive your funds in minutes. Because of this, there is no need to make a lengthy trip to a bank where you will have to wait in line for a long time, only to be turned down for a loan because of a lack of collateral or another issue.

Online loans in Ghana without collateral

You need to know the best apps to use if you desire loans in Ghana without collateral. Always be careful to only download legitimate programs; otherwise, you risk giving your information to shady people. Here are some of Ghana’s top no-collateral online loans:

1. Fido

People who use the Fido money lending mobile application can get quick loans. You won’t need to visit a bank to withdraw money because they pay grants directly to your mobile money wallet when you want them. Furthermore, they won’t require collateral for you to access the Fido grant.

When registering, you must, however, present identification, proof of residency, and proof of work. Then, before disbursing the funds, Fido will decide whether you are eligible for the amount you asked.

2. CashGhana Limited

This is one of the best lending apps in Ghana, particularly for those who are employed. Employed individuals in the private and public sectors can receive a salary advance from CashGhana Limited. You are not obliged to have any collateral to get the short-term credit. You only need to present a legitimate national ID and a letter from your employer’s accounts office, thus the criteria are simple. They will transfer money to your account once you submit your application.

3. PayLater (Carbon)

PayLater brings together Accra-based private money lenders to offer Ghanaians smart cash grants via a mobile application. Following application submission, they deposit funds into your mobile wallet immediately. You must first create an account on the app by providing the ‌details to begin the process. After that, you apply for a grant. Then, you will receive the money in less than 5 minutes after they approve it. First-time borrowers can borrow GHS5 Ghana at a 5% interest rate.

4. MTN Qwik

Thanks to their partnership with AFB Ghana, online loans are available to MTN customers. To qualify for a credit, you should have made some purchases in your wallet for over 90 days. You may be eligible for immediate loans of up to GHS1,000 Ghana Cedis if you satisfy all the prerequisites.

The interest rate on this qwik loan is 6.9 percent, and the only prerequisite is that you regularly use MTN mobile money. To qualify for future loans, you must complete the repayment of the previous one.

5. Zidisha

Lenders and businesses come together in this microlending community. A Zidisha app, an ID, and recommendations from friends or family are what they need for you to apply for a grant. Entrepreneurs must post their loan applications and justify accepting the funding. Loans might be as small as $1 or as much as the requested amount. There is no interest charged for these grants; however, a service charge of 5% of the loan amount and a membership fee of GHS40 are subtracted.

6. OZE SME

It operates by forming alliances with other Fintech companies to obtain small company loans. You can apply for a credit of up to GHS10,000 Ghana Cedis by using the OZE business app. The current interest rate is 3% per month. You can spread your credit repayment into a year’s instalments. Being an OZE user who has been active for longer than a month establishes eligibility. OZE coaches will evaluate your applications first and then complete your loan process.

7. Pezesha

A website called Pezesha offers grants for businesses of up to GHS6,000. These include working capital, inventory, asset, and LPO financing. However, you must first submit an online application form with your identity information. It would just take two minutes to complete the loan application. Credit payback terms range from 3 to 12 months and are adjustable.

8. LendingPapa

Another rapid online loan application in Ghana is LendingPapa. Download the LendingPapa app from the AppStore to gain access to credit up to GHS1,000. You’ll need to create an account to access credit with LendingPapa, thus, simply having the app is not enough. You can verify your identity and submit your application through the account.

9. KiaKia app

One of the newest mobile loan apps in Ghana is called KiaKia. One of the quickest application processes it may let you know your status in a matter of minutes. KiaKia offers quick-repaying short-term loans as a bonus.

10. FairMoney Loan App

The FairMoney loan app is the software to use if you need quick credit for personal finances, car repairs, medical expenses, or any other emergency. The Nigerian company operates in Ghana and provides no-cost bank transfers.

Conclusion

Getting online loans in Ghana without collateral is a reality thanks to the many apps and websites dominating this space. For tiny firms without savings and personal situations, immediate mobile money loans are useful. Besides that, you can also borrow more because the limit rises when the credit is paid on time.

Related Contents:

• Fingertip loans in Ghana

To default on a loan means repayments are not made for a certain time frame. MTN Qwik loan defaulters are individuals who cannot pay up their loan on the due date. Few realise the need for repaying loans from MTN. Some cannot recognize that the responsibility of a borrower is to make repayment on time. Failure to do so can cause additional charges, blacklisting and denial of future loans. It is important you know that, “To accept to borrow is to agree to repay”. 

Read on and explore all you need to know about MTN Qwik loan defaulters.

What is MTN Qwik loans

The MTN Qwik loan is a short-term cash advance disbursed and repaid from your MTN mobile money wallet. They do not require active subscribers to provide security to get the loan. No paperwork, no time wasted, just a tap and your money is deposited into your MOMO account.

Who are the MTN Qwik loan defaulters? 

MTN Qwik loan defaulters are individuals who cannot pay off their MTN Qwik loans on the due date. Some refuse to pay up deliberately, while some cannot pay due to lack of funds. Either way, it affects your credit score. Defaulters can not get future loans until proven worthy for months and a higher credit score attained.

What you need to know about MTN Qwik loan defaulters

MTN users in Ghana go for MTN Qwik loans. Because it is very easy to get. You can get this loan anytime, anywhere. You can cash out with any merchant bank around you.

However, many cannot repay this loan. The consequences of defaulting is not only the penalty of 12.5% charge in the amount borrowed. But also a negative impact on your credit score, thus disqualification from the services for three months. 

The impact of late repayment depends on how often you have paid late and how long you took to make repayments. After many days of non-repayment of MTN Qwik loans, they will deduct any money that enters your wallet till they pay the loan off.

Features of MTN Qwik loans 

The following are features of MTN Qwik loans in Ghana:

1. Simple to apply
2. No saving required for loan application 
3. Loan duration of one (1) month
4. Minimum loan of GHS 50 and maximum of GHC 1,000
5. One loan at a time

Requirements for MTN Qwik loans

Below are lists of criteria you need to meet inorder to be qualified for the loan:

1. Be 18years and above
2. Be active MTN Ghana subscriber for not less than three (3) months
3. Register on the MTN mobile money service and actively using the wallet 
4. Repay all outstanding loans
5. Low MTN mobile money wallet disqualifies you from applying. 

Interest rate

A single principal amount with a fee of 6.9% interest rate is repaid.

MTN Qwik loans duration 

The loan duration for the MTN Qwik loans is 30 days or one month. 

How to apply for MTN Qwik loans 

Applying for MTN Qwik loans is straightforward. Follow the procedure below:

1. Dial *170# on your mobile phone
2. Choose option 5 which is financial services 
3. Select option 3 which is “Loans”
4. Choose option 1, “Qwik Loans”
5. Select also option 1 to “Get Loans”
6. Input your mobile money pin for the next option 
7. Select the loan amount and press send
8. If you qualify, an SMS will be sent to you and your cash to your MOMO account. 

What happens to MTN Quick loan defaulters?

MTN mobile lending service customers who fail to repay their loans on the due date will incur a 12.5% penalty on the outstanding amount. Repayments are automatically deducted from your MTN mobile money account. If your account balance is insufficient, future deposits will be used to settle the outstanding debt.

How to repay your MTN Qwik loans in Ghana

To repay your MTN Qwik loans, follow the steps below:

1. Deposit cash into your mobile money wallet before the due date. On the due date, they will automatically deduct the loan amount.

OR

2. Dial *170#, select 6, and follow the repay loan option prompt menu.

Frequently Asked Questions

Can I deactivate my MTN Qwik loan?

We may not be able to deactivate our Qwik loan account as MTN does not provide a way to do so. But if we do not wish to continue using the service, we can ask MTN to deactivate or delete our Qwik loan account.

Does MTN check credit scores?

Although MTN does not have a specific credit score requirement for its contract, they review your credit history before assessing your loan or contract application. You will more likely be granted an MTN qwik loan or contract if you have a good credit history.

Why can’t I borrow from MTN again

You may not qualify to obtain an MTN loan for several reasons namely:

• Having an outstanding loan balance.
• Whether we have been active users for a while.
• Paying previous loans very late.

Conclusion 

MTN Qwik loans defaulters should know that they can get back on track by repaying their loans. By doing so, they can restore your credit score as well. The platform makes it so simple that you do not need to pass through rigorous procedures before getting your loans. Also have means of repayment before applying to avoid defaulting.

Most times, people in the private sector struggle with low salary scales. As a result, this low income affects the economic and financial status of individuals or families. When you are about to take up investment, as a private worker, finance may be a limiting factor. As the money earned from salary is not always enough. The meaning of loans for private workers and how they work are in this article. Also, the loan requirements, minimum loan amount, and more are all-inclusive in this article.

What are loans for private workers?

Loans for private workers are the type of loans that private workers can get to meet their personal needs. However, the private workers earn little salary to meet up with their needs on a monthly basis. This type of loan ensures that private workers access funds in a very convenient and flexible manner.

Moreso, the private workers’ loan helps private workers make investments, fund their existing businesses and make purchases, and so on.

Meanwhile, private workers can get this type of loan from various banks and financial institutions.

What are the requirements for loans for private workers in Ghana?

There are always requirements to meet before getting a loan. Usually, most of these requirements give the lender enough information about the borrower. Therefore, for you to access loans made available for private workers in Ghana, you need to meet the following requirements:

1. Loan application duly filled
2. Ghanaian national identity
3. Work identity card
4. One passport photograph
5. Your tax card
6. Letter of employment confirmation
7. Your Bank Verification Number (BVN)
8. Pay dated cheque to cover the duration of the loan
9. Statement of account containing three months’ pay slip
10. Salary ranges from GHS500 and above
11. A colleague as a guarantor.
12. Equal monthly installments

What are the minimum and maximum loan amounts I can borrow for private workers’ loans?

You should know whether the minimum or maximum loan amount can meet your loan needs. Hence, this will help you decide whether to take the loan. Meanwhile, the minimum amount you can borrow varies with a lender or loan company and even the bank. However, the minimum amount to borrow is GHS1000. Whereas, the maximum amount you can borrow is GHS 200,000.

How can I apply for loans to private workers in Ghana?

For any loan, there are always one, two or even more ways to apply. Hence, ways of applying for the loan usually vary from one institution to the other.

To apply for the private workers’ loans you can:

1. Visit their office and request for the private workers’ loans. The financial institution can now direct you on how to go about it.
2. You can visit their website with your smartphone, tablet or personal computer.

When you visit their website, you can now expect to:

1. Fill in the loan application form correctly
2. Upload your required documents
3. Accept and sign the contract agreement
4. Submit
5. They process your application
6. They disburse money upon successful processing

Note: Loan application varies by lender or financial institution

What is the interest rate on private workers’ loans in Ghana?

There is no accepted interest rate on private workers’ loans in Ghana. However, the interest rates differ from one bank or financial institution to the other. This usually is the case with additional charges for banks or financial institutions.

Are there additional charges on loans for private workers?

The information about the additional charges is also important. However, it prepares the borrowers’ minds ahead of time. Also, it helps them in making the right decision in either accepting the loan or looking for another alternative. Some financial institutions have additional charges of 1% as management fees and 0.20% as credit life insurance. While some do not have additional fees.

How fast do they release the private workers’ loans?

The need for loans might not give us all the time we need. Therefore, we have to know how fast we can get the loan after applying for it. However, they disburse the private workers’ loans within 48 hours from the point of successful application.

What is the repayment term of the private workers’ loans?

They plan the repayment terms of the private workers’ loans for them to be flexible and convenient for the borrowers. Meanwhile, the repayment terms occur on a monthly basis, which could be up to a maximum of  24 months.

Various loans for private workers in Ghana

Enumerated below are the various loans you can source for in Ghana as a private worker. Hence, to help you improve your home structures, engage in business, and make an investment. It could also be for an emergency. However, loans made available for private workers in Ghana include salary loans, personal loans, working capital, revolving loans, work and pay loans, salary advance loans, SME loans and so on.

1. Personal loans

Personal loans provide borrowers with a monthly repayment strategy with low interest in meeting their personal needs. There are many financial institutions in Accra that offer personal loans to private workers. They include fountain fund loans, HFC loans, banks and so on.

What are the benefits of personal loans?

You stand to benefit from the following as a private worker when you source for personal loans:

1. The monthly repayment plan is up to 24 months.
2. It enables the self used and employees to access finance to sort their financial challenges conveniently.

2. Salary loans

The salary loan is the type of loan you source for as a private worker. Therefore, as agreed with the lender, you intend to pay back with your salary by installment. However, we know this as salary loans, therefore, the borrowers can use it for whatever purpose.

3. Salary advance loans

This is an instant loan product for individuals on payroll who meet the basic requirements of the bank. Also, Bank’s Risk Acceptance Criteria (RAC).

What are the minimum requirements for a salary advance loan?

Below is the list of the general requirements that pertain to salary advance loans:

1. You must have an account with that financial institution
2. The account must be active
3. Your BVN

What are the benefits of private workers’ loans?

Being a private worker gives you an edge to enjoying the following benefits for the loans.

These benefits include:

1. Easy and fast loan processing
2. Loans for various needs
3. There is no collateral required
4. Repayment can be up to 24 months

Note: Income determines your loan eligibility because the more the loan, the more the possibility of early repayments.

Conclusion 

You might experience one financial difficulty or the other as a private worker. Meanwhile, financial difficulties might make you worry on the verge of making you have sleepless nights. However, there are many loan companies and financial institutions available in Ghana to take care of those worries and sleepless nights.

However, having known today that you are eligible for private workers’ loans, it would be nice to try it.

Read also:

Types of loans in Ghana – Meaning and advantages

How to apply for a student loan in Ghana

How to get a loan from Stanbic IBTC bank

Most people will first reach for their mobile phones once an emergency occurs. This is not because they are in love with their mobile phones. But because they need to reach out to their loved ones, probably either to get or render help if need be. However, you can’t make calls without credit (airtime). Some mobile networks allow people to borrow credit from them. You can also borrow data from mobile networks like MTN, AirtelTigo, and Glo in Ghana. MTN offers credit that their customers who need it can borrow. The MTN package that borrows credit, how you can borrow and more are all-inclusive in this article.

How to Borrow Credit on MTN Using USSD Code

If you find yourself in a situation where you urgently need airtime but don’t have enough balance, borrowing credit from MTN via USSD code is a convenient solution. You can loan GHp50 or more from MTN depending on how much airtime you top up monthly. You must have less than GH¢4 to take an XtraTime loan in Ghana.

The following are the steps to borrow credit on MTN in Ghana:

• Dial *506# on your MTN mobile phone.
• Choose the desired credit amount by following the on-screen instructions.
• Verify your choice and use the credit to your advantage.
• A notification verifying the successful credit borrowing will be sent to you, together with any relevant service fees.

Requirements to Borrow Credit from MTN

To borrow credit from MTN using the USSD code, you need to meet the following requirements:

• You must be an MTN subscriber.
• Your SIM card must be registered and active.
• You must have a history of usage of the MTN number for at least 3 months and sufficient airtime recharge on your MTN number.

How can I borrow MTN data bundles in Ghana?

You can use your data bundles to browse the web, and download music and videos of your choice. Besides that, there are many things you can do with your data bundle on the internet.

The following are how you can borrow data bundles from MTN in Ghana:

1. Dial *506#
2. Choose 5. Then request a data advance
3. Choose any option from the data bundle you prefer
4. Confirm it by choosing 1.

How can I check my borrowed credit history?

While borrowing credits, always know that you have a credit history with MTN. The credit history will show your behavior regarding borrowing and repaying over time.

The following are how to check your borrowed credit history:

1. Dial *506#
2. Select the option ‘6’ (Menu)
3. Choose option ‘4’ (History)
4. Immediately, you will receive an SMS about your borrowed credit history.

Note: Have an active MTN SIM in use for 3 months or more to qualify for the credit. Besides that, they will charge you up to 10% of the credit you borrowed during repayment.

Conclusion

Airtime links people and their loved ones. Besides that, airtime can help you deliver a life-saving message to someone. Because of the lack of airtime subscribers experience some constraints. MTN offers credits to customers who qualify for them. And thereafter require them to pay back later. This is a cool initiative by MTN, isn’t it?

Other related articles:

MTN Xtratime in Ghana- How it works

MTN Qwik loan Review – What you should know

https://loanspot.io/gh/how-to-borrow-data-from-vodafone

Vodafone Cash Loan in Ghana

Quick loans in Ghana have redefined banking in a more innovative way. You would no longer need a guarantor or stand in a long queue to apply for a loan. Besides that, you will no longer dabble in long procedures of loan application in banks. Quick loans make loan applications seamless. What quick loan means, mobile money lending apps, and so on are all-inclusive in this article.

What is a quick loan?

A quick loan is the loan that offers both approval and funding within a few days of application. It could be as fast as the same day, depending on the lender’s operation. There are main types of loans that fall under this category. They include; personal loans, payday loans, auto title loans, and pawn shop loans. However, the major goal of quick loan is to provide fast solutions for cash emergencies. Hence, they also call quick loans emergency loans.

Also check out MTN qwik loan

What are the mobile money lending apps that can help me get a quick loan in Ghana?

There are mobile money lending apps that can help you access quick loans in Ghana. These apps were created by various loan companies in Ghana. With these apps, you can be one click away from getting a loan from a lender. Some lenders give instant mobile money loans without asking for any form of collateral.

Read also: mobile money loans in Ghana

The following are the mobile money lending apps that can help you get quick loans in Ghana:

1. Branch Loans App

Without collateral, the Branch loan app works 24/7. You can rely on it to get quick loans in Ghana. Besides that, you can access the quick loan directly into your account comfortably and with no stress.

2. Aella credit loan app

They created Aella credit loan platform to cater for company employees in their interest to access cash anywhere at the most affordable rates. It has now become one of Ghana’s finest mobile money lending apps. Today, you may turn to Aella Credit to seek quick loans to meet your emergency needs.

3. KiaKia Loan App

KiaKia is the recent mobile money lending app in Ghana. This mobile money lending app has a quick application process that helps you to know your status within minutes. Moreso, in Ghana, you can get short term loans to cover your unforeseen expenditures. Besides that, they do not require collateral before disbursing the loan.

4. FairMoney Loan App

The Fairmoney loan app provides quick loans for personal finance, health emergencies, vehicle maintenance, etc. Small business owners can also get quick loans from the Fairmoney loan app. As a small business owner, you can get a quick loan to expand your business. With the FairMoney loan app, you can request the loan in 5 minutes and get it in your bank account.

5. Carbon Loan App

The Carbon loan app (formerly known as Paylater loan app) comes with many cool and easy-to-use features. Besides giving you quick loans in minutes, you can unlock higher loan amounts and lower interest rates when you repay on time.

Note: They do not determine the above quick loans (from mobile money loan apps) by your equity. But they determine it by your creditworthiness.

Check out other loan apps in Ghana

What are the mobile money loan companies that can offer me a quick loan in Ghana?

The procedures for obtaining loans from banks in Ghana can be lengthy. Even though most banks will give you loans. And you might not have a guarantee that you will get the loan. Without savings or access to a bank account, an emergency can discourage your spending habits. Fortunately, mobile money loans in Ghana save the day.

The following are mobile money companies that can offer you quick loans in Ghana:

1. Fido Money Lending Limited
2. BloomKash
3. CashGhana Limited
4. First National Bank
5. GTBank QuickCredit
6. Izwe Savings & Loans
7. MTN Qwik Loan
8. Blue Financial Services Ghana Limited
9. Access Bank PayDay Loan
10. Ecobank Personal Loan
11. Direct Savings & Loans
12. Blue Horizon Microcredit
13. UMB SpeedApp
14. SRF Micro Credit
15. Stanbic Bank USSD Mobile Banking

When would I use quick loans?

Quick loans can often help you manage short term financial problems. Most times, these financial problems are unforeseen.

The financial problems include:

1. Home repairs
2. Donating to the cost of a loved one’s funeral
3. Vehicle breakdown
4. Payment of medical bills

When should I not use a quick loan?

Of course, quick loan products can be suitable for emergency situations. However, there are some situations when a quick loan option isn’t cool.

The following are situations you should not consider using a quick loan:

1. Repaying other forms of loans
2. Payment of bills such as gas, rent, etc
3. Company demanding payments
4. Entertainment
5. Luxury or non-essential purchases

What are the benefits of quick loans?

Quick loans come with so many benefits. Besides saving the stress and rigorous procedures of requesting a loan from banks. We will look at a few other benefits of quick loans.

The following are the benefits of quick loans:

1. In most cases, they transfer the fund on the same day
2. Most lenders encourage early repayment with no fees
3. There is online ‘e-signature’ process (in most cases)
4. Fast online application
5. There are quick loan approval decisions

Conclusion

It can tempt you to use some mobile money lending apps at once to get fast loans. But you need to know that an emergency can occur which could hamper a timely repayment of your loans. Because of this, ensure you can repay a loan before taking it. Most of the mobile money companies in Ghana also help to assess your affordability of the loan you request. They check your credit score to know whether you can repay the loan.

While it is cool to remain out of debt. It is also possible to use debt as leverage to meet your financial goals. Especially if you know what you are doing.

Other Related articles

• Mobile Money loans in Ghana – Everything you should know
• Best loan apps in Ghana 2021
• Mobile loans in Ghana – Meaning and where you can get it
• Loans in Ghana – Meaning and types of loans you can get
• Type of loans in Ghana you should know

Are you looking for a quick loan in Ghana? MTN provides a quick, easy, and convenient means of borrowing called MTN QwikLoan.

With MTN QwikLoan, Ghanaians can have quick access to funds without collateral. in this article, we will explore information on mtn QwikLoan, the requirements, how to apply, and repayment options.

About MTN QwikLoans in Ghana

MTN QwikLoan is a financial solution in Ghana that provides quick and convenient loans to MTN subscribers. It is a short-term cash loan that requires no collateral and it is paid into one’s MTN Mobile Money wallet. The loan does not require previous savings and is accessible. Consistent access to MTN Qwikloan depends on paying your loan on time.

What are the requirements for MTN Qwikloan?

MTN QwikLoan in Ghana has guidelines regarding eligibility for their loan. Eligibility test and confirmation is easier since it’s virtual.

The ability to meet the below requirements gives you an edge for a successful MTN Qwikloan application as a prospective applicant. The requirements for MTN Qwikloan in Ghana include:

1. You must be 18 years and above to apply.
2. You must own an MTN Ghana SIM card
3. There is a need to be an MTN service user for at least 90 days.
4. Also, you must be an active user of MTN Mobile Money services.
5.  Prospective applicants must have an active e-wallet.
6. If you are a constant user of MTN QwikLoan services, you must have a good credit score and history.

Note: If you are not eligible for the loan, it might be because you have a pending loan. It is always advisable to pay off an outstanding loan before requesting a new loan. Also, ensure that your MTN Mobile Money wallet is active.

How can I apply for MTN Qwikloan in Ghana?

Having found out whether you are eligible for MTN Qwikloan, the next question is how I can apply. The application for MTN Qwikloan depends on your details during your MTN registration.

Hence, to borrow money in Ghana using MTN Qwikloan, your mobile must be under your name.

You can apply using the following steps:

1. Dial *170# on your mobile phone.
2. Select the 5th option and click ‘Financial Service’.
3. Choose number 3 and select “Qwikloan”.
4. Select the option “Get a Loan” and choose the loan amount.
5. Then, select the “repayment plan.”
6. Input your Mobile Money PIN

Note: After the successful submission of the application, MTN will process your request. If your application is successful, you will get a notification via SMS. The notification is a confirmation of the loan amount and the repayment duration. 

What is the interest rate for MTN Qwikloan?

MTN Qwikloan has a competitive interest rate when compared to other loan facilities. The interest rate is 6.9% for a loan of 30 days duration.

Note: The interest rate on MTNQwikloan can increase to 12% when you do not repay within the agreed period. Also, if you default after the new extended period, MTN will ban you for 90 days. Meanwhile, you can avoid these penalties with part payment.

What is the amount I can borrow from MTN Qwikloan?

Borrowing from MTN QwikLoan for the first time has limited options. If you are new, you can only borrow GH₵ 20 or GH₵ 50. 

However, if you are a subsequent borrower and your credit score is good enough. You will have more chances of borrowing GH₵ 1000 limit.

How can I repay MTN QwikLoan?

The repayment of MTN Qwikloan is within 30 days from the set day of loan application and approval. Meanwhile, the repayment processes for MTN Qwikloan are straightforward.

The repayment process includes:

1. Manual repayment

This allows you to repay the loan in installments over 30 days. You can make this payment by having money in your MTN Mobile Money account. Then you dial *170# and follow the repayment options.

2. Automatic repayments

This type of repayment option does not require payment by installment. You can exhaust the  30 days and pay the loan using the automatic option. Also, automatic repayment does not require any process. However, you must have the loan amount and the interest in your MTN Mobile Money.

Can you apply for MTN Qwikloan on the same day you repay the one you borrowed before?

Having paid your loan, it takes a few days to approve another loan. Meanwhile, repaying your loan early enough is the key to raising your loan limits. It can raise your loan limit to GH₵ 1000.

Note: Failure to pay your loan on time will affect your MTN QwikLoan credit score. You regain your credit score by constantly using the MTN mobile money savings and loans for at least three months.

How can I check my MTN Qwikloan limit?

Your MTN Qwikloan limit usually changes after repaying previous loans.

You can check your MTN Qwikloan limit by:

1. You first dial *170# on your mobile phone.
2. Choose number 5, which is “Financial Service”.
3. Then click option 3, which is ‘Qwikloan’.
4. Click “Loan Limit”.
5. Finally, enter your Mobile Money PIN.

How can I increase my loan limit on the MTN QwikLoan?

If you are new to MTN QwikLoan, your limit is usually low. However, there are some things you can do to increase your limits.

First, consistently use MTN mobile money savings and loan facilities. The more you use MTN mobile money, the more your limit increases. For example, keep sending money using MTN Mobile money and encourage people to send your payment through MTN.

Second, you must make timely payments to MTN QwikLoan to increase your limits. Redeeming debt obligations is the best way to increase your borrowing capacity. If you make timely repayments within twelve months, you might reach the GH₵ 1000 limit.

Frequently Asked Questions

How can I qualify for the MTN Qwik loan?

To qualify for MTN qwik loan, we must:

• Be 18 years and above.
• Possess MTN Ghana SIM.
• Use MTN Mobile Money services actively and have a valid e-wallet.
• Have used the MTN services for over 90 days (3 months).
• Have a good credit score, for customers who have previously used the Qwikloan services.

How long does it take to qualify for an MTN Qwik loan?

After meeting the eligibility requirements for the MTN qwik loan, it will take us a few days to qualify for the MTN qwik loan. Besides that, we must have been active users of MTN for more than 90 days.

What is the loan application limit for the MTN Qwik loan?

You can typically borrow GH₵ 20 or GH₵ 50 from MTN qwik loan. However, we will have better chances to borrow up to GH₵ 1000 if we are subsequent borrowers and have a good credit score.

Is MTN qwik loan code the same as Momo loans?

No, the MTN qwik loan code is not the same as the Momo code. MTN qwik loan code is *170# whereas MTN Momo code is *671#.

Conclusion

MTN QwikLoan is that favorite quick and convenient loan that does not require collateral in Ghana. It makes banking less frustrating and cool because it involves a shorter process. It is a soft loan you can apply for today in Ghana with few requirements. Looking for an easy and quick loan with no collateral in Ghana, you can try MTN Qwikloan.

Read also:

USSD loan codes in Ghana – What you should know