Before taking a loan from Okash, it’s important to know the key details about their terms, fees, and interest rates. This guide will explain everything you need to understand so you can make smart choices when borrowing.
What is Okash?
Okash is a mobile loan app that helps Nigerians get small loans for short periods. It’s managed by Blue Ridge Microfinance Bank Ltd. and offers a fast way to get money for emergencies or unexpected costs.
Is Okash Registered with the CBN?
Yes, Okash is registered with the Central Bank of Nigeria (CBN). Blue Ridge Microfinance Bank Ltd., which operates Okash, is licensed by the CBN, meaning they follow the rules set by Nigeria’s financial authorities.
What Are the Interest Rates on Okash Loans?
The interest rates for Okash loans can change based on how much you borrow and how long you take to repay it. Generally, the rates range from 36.5% to 360% APR (annual percentage rate). Below is an example if you borrow NGN 3,000:
| Loan Term | Interest Rate (APR) | Interest (NGN) | Total Repayment (NGN) |
|---|---|---|---|
| 15 days | 9.1% | 273 | 3,273 |
| 30 days | 18.2% | 546 | 3,546 |
| 91 days | 27.3% | 819 | 3,819 |
Important Points to Note:
- Daily Interest: Okash calculates interest daily, not yearly. Even if you pay back the loan early, you still pay the full interest.
- Service Fee: There is a one-time service fee of 4% added to the loan.
- Loan Amounts: Interest rates might vary depending on the amount you borrow.
Key Okash Terms and Conditions
Before borrowing from Okash, make sure you understand the following terms:
- Eligibility: You must be between 20 and 55 years old, have a valid Nigerian phone number, a bank account, and a BVN (Bank Verification Number).
- Fees and Interest: Okash will charge a fee and interest on top of the loan. The total cost is shown when you apply for the loan.
- Repayment and Late Fees: If you miss a payment, Okash will charge you extra fees. Continued non-payment can lead to reporting to credit bureaus and possible legal action.
- Privacy: Okash uses your personal details for things like verifying your identity and scoring your credit. They might share your data with credit bureaus or legal authorities if necessary.
- Service Termination: Okash can stop offering their service to you at any time, without warning.
Does Okash Call Your Contacts?
Okash used to contact people in your phone’s contact list if you didn’t repay a loan, but they stopped this practice after facing backlash and new Google Play Store rules. However:
- Emergency Contacts: While Okash says they don’t call your contacts anymore, they may still message emergency contacts you provided during the loan application.
- Unofficial Calls: Some users claim that Okash agents still contact their contacts unofficially, even though this goes against the app’s policy.
Things to Remember Before Borrowing from Okash
- Read the Terms: Don’t skip the terms and conditions. Take time to go through the entire document so you fully understand what you’re agreeing to.
- Borrow What You Can Afford: Only take loans you are sure you can repay comfortably. Borrowing beyond your means can lead to financial stress.
- Explore Other Options: If possible, consider other ways to get money, like asking family or applying for a loan from a traditional bank.
- Seek Help If Needed: If you’re struggling to repay a loan, don’t hesitate to reach out to a financial advisor for guidance.
Final Thoughts
With this information, you should be able to make a more informed decision about borrowing from Okash. Always remember that loans should be used for urgent needs and not become a habit. Borrow wisely to avoid unnecessary stress later on.