Is Carbon Loan Legit? How does it Work? Interest rate, Carbon Loan App Download, FAQs

Carbon Loans, formerly known as PayLater, is a reputable and licensed digital microfinance bank operating under the Central Bank of Nigeria (CBN) guidelines. 

With over 1 million downloads and a strong presence in the Nigerian market, Carbon Loans has earned a reputation for its transparent loan terms, competitive interest rates, and commitment to customer satisfaction.

With Carbon Loan, gone are the days of lengthy paperwork, endless queues, and hidden bank charges. Carbon's user-friendly app and transparent loan terms have made it a popular choice for individuals and businesses alike. But is Carbon Loan legit? How does it work? And what are the interest rates?

Is Carbon Loan Legit?

Yes, Carbon Loan is a legitimate and reputable financial institution. It is a registered microfinance bank under the Central Bank of Nigeria (CBN), ensuring that its operations adhere to strict regulatory standards. 

Carbon Loan has gained the trust of thousands of Nigerians, and its positive reviews speak volumes about its reliability and commitment to customer satisfaction.

How does it Work?

Applying for a Carbon Loan is a straightforward process that can be completed entirely through the Carbon app. The first step is to download the Carbon app from the Google Play Store or Apple App Store. Once installed, open the app and create an account.

You will be asked to provide your basic information, such as your name, phone number, email address, and Bank Verification Number (BVN). This information is used to verify your identity and assess your creditworthiness.

Carbon Loan uses a proprietary algorithm to assess your creditworthiness and determine your eligibility for a loan. This process may involve uploading additional documents, such as bank statements or a passport photograph.

Once your application has been reviewed, you will receive a loan decision within minutes. If approved, you will be able to access your loan funds almost instantly.

You can make repayments for your loan through the Carbon app. Carbon offers flexible repayment plans, allowing you to choose the option that best suits your financial situation.

Interest rate

Carbon Loan offers a range of interest rates to suit the needs of different borrowers. The specific interest rate you receive will depend on your creditworthiness and the loan amount you borrow.

The Carbon Loan interest rate ranges from 1.75% to 30% per month, with an equivalent monthly interest rate of 1 to 21%. This means that if you borrow N10,000, you could pay anywhere from N175 to N3,000 in interest per month.

The Annual Percentage Rate (APR) is a more comprehensive measure of the cost of a loan. It takes into account the interest rate, as well as any fees or charges associated with the loan. Carbon's APR ranges from 23% to 60.8%.

Carbon Loan App Download

Downloading the Carbon Loan app is a simple process and can be done in a matter of minutes. Follow these steps:

  • Visit the Google Play Store or Apple App Store.
  • Search for "Carbon loan app."
  • Click on the "Install" button.
  • Once installed, open the app and create an account.
  • Provide your basic information and complete the verification process.

That's it! You're now ready to apply for a Carbon Loan and access the financial assistance you need.

Requirements To Borrow Loan From Carbon App

To ensure a smooth and hassle-free loan application process, Carbon has established specific eligibility criteria for borrowers. These requirements assess the borrower's financial standing and ability to repay the loan responsibly.

  • Age Requirement: Applicants must be at least 18 years old to enter into a financial contract and assume legal responsibility for the loan.
  • Valid Identification: To comply with Know Your Customer (KYC) regulations, borrowers must provide valid identification documents, such as a government-issued ID, passport, or driver's license.
  • Accurate Contact Information: A valid email address and a working mobile phone number are essential for receiving loan updates, account verification, and essential communication.
  • Active Bank Account: Loan disbursements and repayments are processed through an active bank account registered in the borrower's name.
  • Positive Credit History: A good credit history demonstrates a borrower's financial responsibility and may improve loan approval chances and potentially lower interest rates. However, those with limited or no credit history may still be eligible for loans.
  • Steady Income Source: To ensure loan repayment capacity, borrowers must have a stable source of income, such as regular employment, business profits, or verifiable sources of revenue.
  • Residential Address: Providing a current residential address helps establish the borrower's location and aids in identity verification.
  • Acceptance of Terms and Conditions: Borrowers must agree to abide by the Carbon app's terms and conditions, which outline the loan agreement's regulations and responsibilities.


Is Carbon Loan safe?

Yes, Carbon Loan is a safe and secure platform. It uses industry-standard encryption methods to protect your personal information and financial data.

What are the requirements for applying for a Carbon Loan?

To apply for a Carbon Loan, you must be a Nigerian citizen, 18 years of age or older, and have a valid Bank Verification Number (BVN).

How long does it take to get a Carbon Loan?

The approval process is very quick, and you can expect to receive a decision within minutes.

What are the repayment options for Carbon Loans?

Carbon Loan offers flexible repayment plans, allowing you to choose the option that best suits your financial situation.

What happens if I miss a Carbon Loan payment?

Late payments may incur additional fees and could affect your creditworthiness. It's important to make repayments on time to maintain a good credit history.

What is the interest rate on Carbon loan?

The interest rate on Carbon loan ranges from 1.75% to 30% per month, depending on the loan amount and repayment period. The Annual Percentage Rate (APR) ranges from 23% to 60.8%.

How much can I borrow from Carbon loan app for the first time?

For first-time borrowers, the loan amount that can be approved by Carbon can range from N10,000 to N1 million. The specific amount that is approved will depend on the borrower's creditworthiness, income, and other factors


Carbon Loan has emerged as a convenient and accessible financial solution for individuals and businesses in Nigeria. 

Its user-friendly app, transparent loan terms, and competitive interest rates have made it a popular choice for those seeking quick and reliable financial assistance.

This post has covered everything you need to know about how legit it is.

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