Is FairMoney Worth It? My Personal Experience
By Tunde Adeyemi
When it comes to money matters in Nigeria, one thing all of us can agree on is this: e no easy. Whether it’s facing an unexpected emergency, handling small business needs, or just trying to make ends meet before salary drops, sometimes you need extra funds quickly. That’s where loan apps like FairMoney come in. But is FairMoney really worth all the hype? Let me gist you about my personal experience with this app and share my honest thoughts.
What Exactly is FairMoney?
FairMoney is a mobile app that offers quick loans to Nigerians without the usual stress of visiting a traditional bank. All you need is your smartphone, a BVN (Bank Verification Number), and a few minutes to apply. As of today, they claim to provide loans ranging from ₦1,500 to ₦1,000,000 with repayment periods up to 18 months, depending on the loan type.
On paper, this sounds fantastic, right? But as we all know, paper and reality are two different things.
My First-Hand Experience
Let me start by saying I’m not new to the world of loan apps. I’ve used a few others before, so I had a basis for comparison when I downloaded FairMoney. Signing up was relatively smooth. They didn’t ask for too many documents—just my BVN and some basic personal details—but e get one wahala: the app required me to give access to my phone contacts, SMS, and other private information. Honestly, I dey fear small, but I went ahead anyway because I really needed the money for a family emergency.
After registering, I applied for a small loan of ₦10,000. Within minutes, my loan offer came through, but here’s the interesting part: they approved only ₦6,500 out of the ₦10,000 I requested, and they deducted a service fee upfront. I ended up receiving around ₦5,700 in my bank account. This thing pain me, but I was desperate, so I accepted it.
The repayment period was two weeks, and the interest rate was higher than I expected. For the ₦6,500 loan, I had to repay around ₦7,300. If you calculate it, the interest rate was about 12% for just two weeks. Compare that to annual interest rates offered by traditional banks, and you’ll see how expensive these loans are.
The Good
FairMoney has its strong points, no doubt. Here are a few things I liked about the app:
Speed of Disbursement
Once my loan was approved, the money landed in my account almost instantly. No stories, no delays. For someone in urgent need, this was a lifesaver.
User-Friendly Interface
The app is simple to navigate. Even if you’re not tech-savvy, you’ll find it easy to use. Everything is straightforward—loan application, repayment, and even tracking your past transactions.
Flexible Loan Offers
One thing I appreciate is that as you repay your loans on time, your credit limit increases. After paying back my first loan, I was offered a higher amount with slightly better terms.
No Human Wahala
Unlike banks where you have to queue or explain your life story to somebody before getting a loan, FairMoney is purely digital. No embarrassment, no “oga, come back tomorrow” kind of drama.
The Bad and the Ugly
But not everything about FairMoney is rosy. Naija no be place where you take things at face value, so here are some issues I had:
High Interest Rates
Let’s be frank—FairMoney’s loans are expensive. If you’re not careful, the high interest rates can trap you in a cycle of borrowing to repay previous loans. For people who don’t fully understand how compounding interest works, this can lead to serious financial trouble.
Privacy Concerns
This one is a major red flag for me. FairMoney, like many other loan apps, requires access to your phone’s contacts and messages. While they claim this is for credit scoring purposes, it feels invasive. Worse still, I’ve heard stories of some loan apps (not necessarily FairMoney) sending embarrassing messages to people’s contacts when they default. I didn’t experience this personally, but the possibility alone is scary.
Short Repayment Periods
Most of the loans come with very short repayment periods—two weeks to one month. For people who rely on monthly salaries, this can be stressful. If you miss the deadline, the penalties are steep, and your credit score takes a hit.
Hidden Fees
FairMoney deducts service fees and other charges upfront, which reduces the actual amount you receive. They don’t make this clear enough during the application process, in my opinion.
Who Should Use FairMoney?
To be fair (pun intended), FairMoney isn’t a bad app—it’s just not for everybody. If you’re in urgent need of cash and have no other options, it’s a decent solution. But if you’re looking for a long-term financial partner or a business loan with low interest rates, you’re better off exploring other options like LAPO Microfinance Bank or even traditional banks.
FairMoney works best for short-term, emergency needs. Maybe your car broke down, or you need money for a hospital bill. But if you’re thinking of borrowing to fund a big business idea or long-term project? Abeg, look elsewhere.
What I’d Like to See Improved
FairMoney has potential, but there’s room for growth:
Lower Interest Rates
If they can reduce their interest rates or offer more competitive terms, they’ll attract more customers.
Better Transparency
The app should make all fees and charges crystal clear during the loan application process. No hidden surprises.
Privacy Assurance
I’d like to see them address privacy concerns more seriously. Maybe they can use less invasive methods for credit scoring.
Well, FairMoney delivers on their promise of instant loans, but it comes at a cost—literally. For me, the app served its purpose during my time of need, but I wouldn’t make it my go-to financial solution.
If you decide to use FairMoney, my advice is simple: borrow only what you can afford to repay, and don’t use it as a long-term financial crutch.
So, over to you now—have you used FairMoney before? What was your experience like? Let’s talk in the comments!