Understanding Carbon’s New USSD Loan Code: CBN Approval Status, Requirements, and Interest Rates
As you seek new ways to access capital in Nigeria, Carbon’s new USSD loan code offers a convenient option to apply for quick, short-term financing. Before utilizing this service, you must understand key details. is this loan product approved by the Central Bank of Nigeria (CBN)? What are the requirements and interest rates? With mobile money adoption accelerating across Nigeria, Carbon aims to provide financial access with transparency on loan terms.
As you evaluate this offering for your personal or business financing needs, this article provides answers to critical questions on CBN approval status, borrower requirements, and interest rates to inform your lending decisions.
Introducing Carbon’s New USSD Loan Service
Carbon has recently launched a new USSD loan service in collaboration with major Nigerian banks. The USSD loan code *1303# can be accessed directly from mobile phones, allowing customers to apply for and access loans more conveniently.
CBN Approval and Requirements
Carbon’s USSD loan service has been approved by the Central Bank of Nigeria (CBN) and meets all regulatory requirements. To be eligible for a Carbon USSD loan, you must:
- You must be u too 18 years
- Have a steady source of income
- Provide a valid means of identification (e.g. Driver’s License, Voters Card, National ID, International Passport)
- Have an account with a licensed commercial bank in Nigeria
- Have a good credit history
Loan Amounts and Interest Rates
Through the USSD code *826#, Carbon offers unsecured loans ranging from ₦5,000 to ₦500,000 with flexible repayment tenors of 1 to 12 months. The interest rates charged on the loans are competitive and in line with CBN guidelines. The rates are:
- 5% monthly interest on loans below ₦100,000
- 3% monthly interest on loans from ₦100,000 to ₦500,000
There are no hidden charges and no penalties for early repayment of the loans. The total interest and principal due are clearly stated upfront before disbursement of funds.
Convenient Access and Fast Disbursement
The USSD code *1303# provides customers with a quick and easy way to access loans anytime, anywhere directly from their mobile phones. Applicants can get loan pre-approvals within minutes and funds are disbursed directly into their bank accounts within 24 hours of approval and signing the offer letter.
Carbon’s streamlined digital processes and proprietary credit scoring methodology enable fast turnaround times while reducing the hassles traditionally associated with borrowing money. Customers can apply for and get access to funds all at the click of a few USSD menu buttons.
The new USSD loan service from Carbon makes borrowing more convenient, transparent and accessible to salaried workers and SMEs in Nigeria looking for quick funds to meet their financial needs. For more details on the service or to get started with your loan application today, simply dial the USSD code *826# from your mobile phone.
Eligibility Criteria: Who Can Access Carbon’s Loans via USSD?
To access Carbon’s new USSD loan service, you must meet the following eligibility criteria:
Be a resident of Nigeria
Only residents of Nigeria are eligible to apply for and access Carbon’s loans via USSD. You will need to provide proof of valid identification, such as a national ID card, driver’s license, voter’s card or passport to verify your citizenship and residency.
Have a consistent source of income
You must have a consistent and verifiable source of income to qualify for a Carbon USSD loan. This could be from employment, business revenue or other legal income streams. Carbon will review your income statements or bank statements to confirm your income level and ability to repay the loan.
Meet the minimum age requirement
You must be at least 18 years of age to access a Carbon USSD loan. This is the legal age of consent to enter into financial agreements and contracts in Nigeria.
Have an active mobile money account
To receive loan funds and make repayments via USSD, you will need an active mobile money account with any of the major mobile money operators in Nigeria like Paga, OPay or PalmPay. Carbon transfers loan amounts directly to and collects repayments from your mobile money account.
Have a good credit score
Carbon conducts credit checks on all loan applicants to assess credit risk. Having a good credit score and clean credit history increases your chances of qualifying for a Carbon USSD loan. Those with poor or no credit history may face higher interest rates or be declined.
Meeting these eligibility criteria will qualify you to access fast, convenient loans from Carbon via USSD. Carbon aims to provide access to finance for as many creditworthy individuals as possible through their USSD lending channel. Please check Carbon’s website for any updates to their eligibility criteria.
Interest Rates and Repayment Terms for Carbon’s USSD Loans
When considering a USSD loan from Carbon, it is important to understand the interest rates and repayment terms to determine if the loan will be affordable and fit your needs. According to the Central Bank of Nigeria (CBN), Carbon’s USSD loans currently have interest rates ranging from 3-5% per month, which translates to 36-60% per annum. The exact interest rate offered depends on your credit score and repayment history. Those with a high credit score and good repayment history on previous Carbon loans will qualify for interest rates on the lower end of the range.
The loan terms for Carbon USSD loans are typically 3 to 12 months. The specific loan term offered depends on the loan amount. Smaller loan amounts, such as ₦5,000 to ₦50,000, usually have shorter terms of 3 to 6 months. Larger loans of ₦50,000 to ₦500,000 generally have longer terms of 6 to 12 months. It is important to only borrow what you can afford to repay within the loan term to avoid late fees and impacts to your credit.
Repayments for Carbon USSD loans are made through automatic deductions from your bank account or mobile money wallet. The repayment amounts and dates are predetermined based on your specific loan amount and term. For example, a ₦100,000 loan with a 6-month term may have 6 equal payments of ₦18,700 deducted from your account every 30 days. It is essential to ensure sufficient funds are available in your account each month to avoid missed or late payments.
In summary, Carbon USSD loans offer interest rates of 3-5% per month and loan terms of 3 to 12 months depending on the loan amount. Repayments are made through automatic deductions from your bank account or mobile money wallet. Borrowers should evaluate these rates and terms, their own financial situation, and repayment ability to determine if a Carbon USSD loan is right for their needs before applying.
How to Apply for a Carbon USSD Loan: Step-by-Step Guide
To apply for a Carbon USSD loan, follow these steps:
Check Your Eligibility
To qualify for a Carbon USSD loan, you must:
- Be between 21 to 65 years old
- Have a steady source of income
- Own a mobile phone with a registered SIM
- Have a verifiable BVN
Gather the Required Documents
You will need to provide:
- A copy of your means of identification (Driver’s License, National ID, Voter’s Card or Passport)
- Proof of address (Utility bill or Bank statement not older than 3 months)
- Your account statements for the last 3 months
- Your BVN
Apply via USSD
- Dial *822# on your phone
- Select ‘New Loan Application’
- Enter the requested details like your name, date of birth, gender, marital status, etc.
- Provide information on your employment, including your job role, company name, and monthly income
- Enter the details of the loan you want to apply for including the loan amount and preferred tenor
- Review and confirm the details of your application
- You will receive an SMS notification within 24 hours on the status of your application
Loan Disbursement
If approved, your loan amount will be disbursed into your provided bank account within 24 hours. The repayment period will commence immediately with repayments to be made in installment.
To stay up to date on any changes to Carbon’s USSD loan requirements, interest rates or codes, monitor the Central Bank of Nigeria’s website. By following the steps outlined here and meeting the minimum eligibility criteria, you will have a good chance of accessing quick funds through Carbon’s USSD loan service. Please note that additional terms and conditions may apply.
READ ALSO: How to Get Loans in Nigeria Without a Salary Account
Conclusion
You now have a full understanding of Carbon’s new USSD loan code and its CBN approval status. By reviewing the requirements, interest rates, and application process, you can determine if this new digital loan option is right for your financial needs.
As Carbon continues expanding its digital financial offerings across Africa, be sure to monitor any updates from credible sources regarding additional services, updated terms and conditions, and user experiences. Carefully evaluate all loan options to select the best choice providing affordable access to credit for your personal situation.
