Whether you're looking for a quick loan to cover an unexpected expense or a convenient platform to manage your finances, FairMoney offers a range of solutions to meet your needs.
But a common question for first-time users arises: how much can you borrow from FairMoney for the first time?
This blog post delves into this question, exploring factors that determine your loan amount and providing insightful information to guide your first borrowing experience with FairMoney.
Understanding Loan Limits for First-Time Borrowers
Your first-time loan limit on FairMoney is determined by a combination of factors, including:
- Creditworthiness: FairMoney analyzes your credit history using a proprietary algorithm to assess your risk as a borrower. This assessment involves factors like your past borrowing behavior, repayment history, and current financial situation.
- Income: FairMoney considers your income to determine your ability to repay the loan. This information helps them assess whether the loan amount you request is feasible within your financial capacity.
- Employment status: Your employment status plays a role in determining your eligibility and loan limit. Salaried individuals typically have higher loan limits compared to self-employed individuals.
- Loan purpose: FairMoney may consider the loan purpose when determining your limit. For instance, loans for business purposes may have different limits compared to personal loans.
While these are the key factors, FairMoney's internal credit scoring system also plays a role in determining your first-time loan limit. This system considers additional factors like your bank account details, spending habits, and other relevant information to create a comprehensive credit profile.
Average Loan Limits for First-Time Borrowers
FairMoney offers first-time loan limits ranging from N1,500 to N40,000. However, the specific amount you are eligible for depends on the factors mentioned above.
Here's a general guideline for first-time borrowers:
- New users with limited credit history: N1,500 - N10,000
- Users with some credit history and stable income: N15,000 - N25,000
- Users with excellent credit history and strong financial standing: N30,000 - N40,000
It's important to note that these are just estimates, and your actual first-time loan limit may vary.
Tips to Increase Your First-Time Loan Limit on FairMoney
Here are some helpful tips to increase your chances of getting a higher first-time loan limit on FairMoney:
- Build a positive credit history: Make timely payments on your bills and loans, even if they are small.
- Maintain a stable income: Having a consistent source of income increases your reliability as a borrower.
- Use FairMoney actively: Regularly using FairMoney for savings, bill payments, and other financial services demonstrates responsible financial behavior, which can improve your credit score within the app.
- Apply for a smaller loan amount: Starting with a smaller loan amount and repaying it on time can build your credit history and allow you to qualify for higher loan limits in the future.