Traditionally, borrowing money in Ghana has always been a long and bureaucratic process. The lending institution, for example, must request proof of collateral during the process. Fortunately, it is easier, faster, and convenient to borrow money from MTN QwikLoan.
Before you get money from MTN QwikLoan, you need to know how to apply for the loan, the requirements, and the borrowing terms. With these three things in mind, you will find it easier to apply and get a loan. Besides, it helps to know the repayment terms to avoid being listed as a defaulted. The best part is that you can accomplish all the steps using MTN shortcodes.
How to qualify for MTN QwikLoan
As a loan facility, the MTN QwikLoan has guidelines regarding who qualifies for the loan and who does not. Since the service is virtual, it is easier to know whether you are eligible for the credit and, if not, the steps you should take to qualify.
To qualify for the MTN QwikLoan, you must:
- Be 18 years and above.
- Have an MTN Ghana sim card
- You must have used the MTN services for more than three (3 months) or 90 days.
- Be an active user of MTN Mobile Money services and have an active e-wallet wallet.
- Must have a good credit score, if you have used the QwikLoan services before.
READ ALSO: Find your MTN number in a few simple steps
If you qualify for the QwikLoan, read on to apply, and eventually repay the loan. If you do not qualify for QwikLoan, these suggestions can help improve your chances of qualifying.
How to apply for MTN QwikLoan
The platform relies on your MTN registration details. Therefore, to borrow money from MTN in Ghana, your mobile must be under your name.
To apply for the MTN QwikLoan, follow these steps.
- On your phone, dial *170#
- Go to option #5 and click “Financial Service Option.”
- Choose option #3 and select ‘QWIKLOAN.’
- Click the first option “Get a Loan” and go the loan amount.
- Choose the “repayment plan.”
- Enter your Mobile Money PIN
After the application process, MTN will take some time to evaluate your request. If the application is successful, you will get an SMS confirming the loan amount and the repayment period. The confirmation SMS will also include a 6.9% interest rate.
However, if you did not qualify for the loan, you should evaluate a few things. First, if you have a pending loan, it is advisable to pay it off before requesting a new loan. Second, you should ensure that the MTN Mobile Money wallet is active.
How much can I borrow from MTN QWIKLOAN?
If you want to borrow money from MTN QwikLoan for the first time, you have limited options. In most cases, you can only borrow GH₵ 20 or GH₵ 50. However, if the loan is your subsequent application and your credit score is better, you have high chances or getting the GH₵ 1000 limit.
If you fail to pay your loan on time, you affect your MTN QwikLoan credit score. In this case, you must regain the credit score by consistently using the MTN mobile money savings and loans for more than three months.
How to repay MTN QwikLoan
After the 30 days, you must repay MTN QwikLoan. Just like in the loan application, the repayment processes are simple and straightforward.
The repayment options include:
1. Manual repayment
The first and best option is manual repayment. This option allows you to pay the loan in instalments over the 30 days. To make partial payments, you must have money in your MTN Mobile Money account. Dial *170# and follow the repayment steps.
2. Automatic repayments
Alternatively, you can wait for 30 days and pay the loan through the automatic option. As the name suggests, you do not need any process. However, you must have the borrowed amount and the interest on your MTN Mobile Money.
After repaying your MTN QwikLoan, can you apply for a new loan on the same day? Unfortunately not. The platform takes a few days to approve another loan. However, being timely with your repayments is the key to raising your loan limits and probably reaching the GH₵ 1000 limit.
How to check MTN QwikLoan limit
After loan repayment, the MTN QwikLoan limit may change. You can check your limit by following these steps.
- On your gadget, dial *170#
- Select #5, which is “Financial Service Option.”
- Click option #3 that is ‘QWIKLOAN.’
- Go to “Loan Limit”
- Enter your Mobile Money PIN
How to increase your loan limit on the MTN QwikLoan
The MTN QwikLoan has policies that determine loan limits. Like mentioned earlier, the loan limit for first-time applicants is low. However, you can increase your loan limit in two ways.
First, continue using MTN mobile money savings and loan facilities. The MTN mobile money has redefined banking, and using the platform more increases your borrowing limit. For example, send money from this platform and encourage people to send your payment through MTN.
Second, make timely payments to MTN QwikLoan. Honouring debt obligations is the surest way of increasing your borrowing capacity. If you make timely repayments for a year, you may reach the GH₵ 1000 mark.
MTN QwikLoan interest rates
MTN QwikLoan has a relatively low-interest rate compared to most banking institutions. The standard interest for all loans is 6.9% for 30 days. In this case, if you borrowed GH₵ 1000, you will pay GH₵ 1069 after 30 days.
However, the interest rate changes if you default payments. For example, if you do not pay the loan after the agreed period, you pay a 12% interest rate as opposed to 6.9%.
Conversely, if you default payments after the new extended period, you may get more MTN penalties. In this case, the harshest penalty is missing on MTN loan offers in the next 90 days. The 90-days ban is, however, subject to change.
To avoid these penalties and high-interest rates, you can make partial payments before the 30-day deadline. For example, if you have a GH₵ 1000 loan from MTN QwikLoan, you can make partial payments of GH₵ 250 every week and avoid penalties.
These steps contain everything you need to know how to borrow money from MTN QwikLoan. While the processes are subject to MTN QwikLoan terms, they meet the Ghanaian banking rules. Besides, the interest on the loan is within the industry standards.