In Nigeria’s rapidly growing fintech space, Carbon has become a leading name in digital banking and lending. From offering instant loans to providing high-interest savings plans, Carbon has evolved into a full-service financial platform. But how does it really stack up? This Carbon loan app review breaks down everything you need to know.
What Is Carbon?
Carbon is a Nigerian fintech company that began operations in 2012 under the name Onefi (OneFinance). Initially focused on short-term loans, the company rebranded to Paylater in 2016 and later adopted the name Carbon to reflect its expanded services.
Today, Carbon operates as a digital bank offering:
- Personal and SME loans
- Bill payments and money transfers
- High-yield savings and investment options
- Free credit reports for loan applicants
Check out: Best Loan Calculator in Nigeria
Founders and Ownership
Carbon was founded by brothers Chijioke Dozie and Ngozi Dozie. The company has raised over $15.8 million from notable investors including NET1 UEPS Technologies Inc., Lendable, and Google Launchpad Accelerator.
Is Carbon Loan Legit?
Carbon is a legit Lending company and operates as a recognized financial service provider in Nigeria, with full authorization and oversight from the Central Bank of Nigeria (CBN). It is regarded as one of the best loan apps in Nigeria.
Carbon Loan Features
| Feature | Details |
|---|---|
| Loan Amount | ₦1,500 – ₦1,000,000 |
| Interest Rate | 4.5% – % depending on credit score |
| Cashback | 10% – 100% on interest for timely repayment |
| Collateral | Not required |
| Credit Report | Free for new applicants |
| SME Loans | Up to ₦20,000,000 within 48 hours |
Before you apply for a loan with any app or bank, it’s smart to check what your repayments might look like.
Use our free Loan Calculator to see exactly how much you’ll owe each month.
How to Use the Carbon Loan App
To access a loan via Carbon:
- You can get the Carbon app by installing it from either the Google Play Store or the Apple App Store.
- Create an account using your personal details.
- Click on “Request a loan” and enter the amount and reason.
- Wait for approval, which typically happens within minutes.
- Once your loan request is accepted, simply enter your bank information to have the money sent to you.
Loan Repayment Process
Carbon automatically debits your account or linked debit card on the due date. If repayment is made via debit card, a 1% fee applies. You can also repay manually by transferring funds to your Carbon account and selecting the repayment option in the app.
Carbon Loan USSD Code
Carbon provides a USSD option designed for individuals who don’t use smartphones, making financial services more accessible.
Carbon Investment Options
Carbon provides three savings plans:
| Plan | Description | Interest Rate |
|---|---|---|
| Cash Vault | Lock bulk sums for capital projects | 15.5% |
| Goals | Save towards specific goals | Up to 9.5% |
| FlexSave | Flexible savings for spare cash | Variable |
Want to Know how much Tax leaves your Salary? Try this Personal Income Tax Calculator in Nigeria
Is a Loan from Carbon Right for You?
Carbon helped lead the way in bringing digital loan services to Nigeria. Its collateral-free loans, transparent terms, and user-friendly app make it a strong choice for looking for a personal loan or even a business loan in Nigeria. However, it’s worth comparing with other loan apps like Branch, FairMoney, or PalmCredit to find the best fit for your financial needs. Use this loan calculator to find out the best loan.
Carbon has proven itself as a reliable and innovative digital lender in Nigeria. With its strong regulatory backing, competitive interest rates, and diverse financial products, it remains a top contender in the digital banking space.
Frequently Asked Questions (FAQs)
How much can Carbon lend you the first time?
For first-time users, Carbon typically offers a modest loan amount—often starting from ₦1,500 to ₦20,000. The exact figure depends on your credit profile and financial history. As you repay loans on time, your borrowing limit increases, potentially reaching up to ₦1,000,000.
How long does it take to get a loan from Carbon?
Carbon loans are designed for speed and convenience. Once your application is approved, funds are usually disbursed into your Carbon account or linked bank account within minutes. The entire process—from application to disbursement—can take less than 30 minutes for eligible users.
How long does it take to get approved for a Carbon Quick Loan?
Carbon reviews loan applications almost instantly. In most cases, you’ll receive a decision within 15 minutes of submitting your request. If approved, the funds are deposited into your account shortly after confirmation.
Does Carbon require BVN?
Yes, Carbon requires your Bank Verification Number (BVN) during registration and loan application. This helps verify your identity, prevent fraud, and assess your creditworthiness. Your BVN ensures that your personal and financial details are securely matched to your account.
How do I pay back my Carbon loan?
Repaying your Carbon loan is simple and automated. On your due date, the repayment amount is deducted from your Carbon account or the debit/ATM card linked during your application. You can also make manual payments by selecting the “Make a Repayment” option in the app.
What happens if you don’t repay a Carbon loan?
Failure to repay your Carbon loan can lead to serious consequences:
- Legal action: Persistent default may result in debt recovery efforts, including court proceedings.
- Loan ineligibility: You may be disqualified from accessing future loans from Carbon or other financial institutions.
- Credit score impact: Your credit history may be negatively affected, reducing your chances of securing financial services elsewhere.
Is Carbon a Digital Bank?
Carbon operates as a digital banking platform serving customers across Nigeria, Kenya, and Ghana.
- Carbon Zero: A buy now, pay later product
- Savings plans with up to 15.5% interest
- Bill payments and money transfers