Is Carbon Loan Approved by CBN? Carbon Loan USSD Code, Requirements & Interest Rate

Last Updated on May 8, 2023

Carbon which was first called paylater is a fintech company in Nigeria that offers loans to people, allows them to transfer money, pay bills online and offers investment options in the form of high-interest savings.

Carbon is now one of the popular digital banks in Nigeria, but this wasn’t always the case. The company started out as Onefi (Onefinance) in 2012, a lending service providing short-term loans of up to N1,000,000 to consumers within 24 hours.

However, Onefi rebranded to Paylater in 2016 and some months later the company decided to settle on the new name.

See: GTBank Loan for Salary Earners (What You Need to Know)

Who Are the Owners of Carbon Loan

Carbon was founded by two brothers Chijioke Dozie and Ngozi Dozie. The company has gone on to raise $15.8 million from investors that include NET1 UEPS Technologies Inc., Lendable and Google Launchpad Accelerator.

Is Carbon Loan Legit? Is it Approved by CBN?

Yes, Carbon loans are legit. The company has been in operation since 2012 and has now transitioned into a full-suite digital bank licensed and regulated by the Central Bank of Nigeria (CBN).

The company is increasing its global presence with the company having around 90 employees with a presence in Mauritius, Nigeria, the United Kingdom, the United States, Canada, South Africa, and Kenya.

Carbon Loan at a Glance

• Collateral-free loans of up to N1,000,000
• Get cashback ( 10 – 100%) on interest paid once you repay on time
• 5% to 15% Interest rates
• A Free credit report for every new loan applicant.

How Much Can You Borrow from Carbon?

You can get up to ₦1 million via a Carbon loan. But on your first try, it is usually very low. As you pay back, you get access to bigger amounts.

How Does Carbon Loan App Work?

Carbon offers personal and SME loans in Nigeria.

Personal loan amounts from this company can get up to N1,000,000 and you can access business loans of up to N20,000,000 within 48 hours to grow and expand your business.

For its’ SME loans, it charges a fixed 5% fee on the amount disbursed for new applicants and 4% for returning customers with zero hidden fees.

Interest rates on personal loans are competitive and vary depending on your credit standing.

Also See: How to Check NIRSAL Loan with BVN

Carbon Loan App Download

To get a loan, download the Carbon app from the Google Play Store or Apple App Store.

How to Get a Carbon Loan

To access a carbon loan follow these steps:

• Download the App from Google Play Store for Android or App Store for iOS.
• Then create an account by providing your personal details
• Then apply for your loan by clicking on the “Request a loan” option
• Next, enter the amount you want to borrow and your reasons for seeking the loan.
• Next, you’ll be informed if your loan application was successful or not
• If your loan was approved, you’ll be asked to provide your card details and the funds will be credited into your account.
• When you’ve paid back your loan in full, You can apply for another loan immediately at a higher amount and at a lower rate.

How to Repay a Carbon Loan

Repaying your loan at Carbon is quite easy and works automatically. On the due date of the loan repayment, the platform automatically debits your account by the amount you owe. it will be deducted from your Carbon Account or the account linked to the debit/ATM card you provided during your loan application. But you should know that if repayment for your loan is done from your debit card, you will incur a 1% fee on all your repayments.

Checkout: How to Repay Migo Loan

How do I Fund my Carbon Account?

• By Making a Direct Transfer to your Carbon account – please send money using the following details.
• Account Name: Your name
• Bank: CarbonAccount Number: Your Carbon account number which you can find on the app home page, at the top left, just beneath the customer’s account balance.
• Once your account is funded, launch your app, in the menu section, select ‘your loans’, then click the ‘make a repayment’ option.
• Select your Carbon account as the means of repayment and your account is immediately updated, once payment is successful.

Carbon Loan USSD Code

Carbon also provides a USSD service for its users. The Carbon loan USSD code is *1303#. The code can be used on both MTN and 9mobile platforms by dialling *1303#.

Also See: USSD Codes for Loans in Nigeria

Is Carbon Right for you?

Carbon is one of the pioneers of digital lending in Nigeria, so they have a good history of providing collateral-free loans to Nigerians, so accessing a loan from this company shouldn’t be difficult as long as you have a good credit history.

However, Carbon isn’t the only company offering good loan options in Nigeria. You can find other loan apps in Nigeria offering instant loans at low interest,. You can also find great investment options other than Carbon in our investment platforms in Nigeria guide.