How to Get a Loan from OPay: A Comprehensive p Guide

In Nigeria, unexpected financial needs can arise anytime. Whether it’s an emergency medical bill, a sudden car repair, or a pressing business expense, having access to quick and reliable financial assistance can be very important. OPay, a leading mobile wallet platform in several countries, offers a convenient solution through its diverse loan products.

This comprehensive guide will walk you through the process of obtaining a loan from OPay, covering everything from eligibility requirements to repayment options.

Who is OPay?

OPay is a leading financial services company operating primarily in Nigeria, with a mission to make financial services more inclusive through technology. They are “Beyond Banking”, offering a wider range of services than a traditional bank might.

Here’s a quick overview of OPay:

• Who they are:
  • Founded by Opera Norway AS Group
  • Over 35 million registered app users and 500,000 agents in Nigeria
• What they do:
  • Mobile-based platform for various financial services:
    • Payments and transfers: Send and receive money easily
    • Bill payments: Pay utility bills and other recurring expenses
    • Loans: Access microloans and other financial products
    • Savings: Earn interest on your saved money
    • Debit card: Get a reliable debit card with no charges
  • Aim to simplify finances and payments for individuals
• Their mission:
  • Deepen financial inclusion through technology
  • Enable shared prosperity
• Headquarters: Lagos, Nigeria

Note: Although OPay is currently focused on the Nigerian market, they operate in other emerging markets as well.

If you’d like to learn more about OPay, you can visit their website: https://www.opayweb.com/

Also read: How to fund my Momo agent wallet

What Loan Products Does OPay Offer?

While OPay previously offered individual loan products through its app, specifically Okash, these features have been removed as of January 2020 due to concerns and backlash regarding their lending practices.

However, OPay currently offers merchant loan products through its mobile application. These loans are targeted specifically towards businesses and not individuals. Here’s what you need to know:

• Loan amounts: Short-term loans range from ₦2,500 to ₦1 million and long-term loans go up to ₦5 million (Nigerian Naira).
• Interest rates: Short-term loans have a 3% interest rate, while long-term loans can reach up to 15%. Interestingly, OPay claims lower interest rates for more active users on their app.

It’s important to remember that using any loan product comes with inherent risks, and it’s crucial to carefully consider your financial situation and understand the loan terms before applying. Additionally, since individual loan products are no longer offered, any information you find online about them might be outdated or irrelevant.

What is OPay Merchant Loan?

OPay Merchant Loan is a short-term (daily) or long-term (28-42 days) loan program offered by OPay specifically to registered merchants who use the OPay app for their business transactions. It provides merchants with quick access to funds to help them grow and expand their businesses, with loan amounts ranging from N2,500 to N5,000,000.

What are the different types of loans available on the OPay Merchant Loans?

There are two types of loans available on the OPay Merchant Loans on OPay and they are:

Short and Long-term loans.

How does a Short-term loan work?

Short-Term Loans enables you to select a loan amount up to your pre-approved credit limit. The short-term loans are usually due by midnight on the day after the loan was paid into your wallet with a flat fee of 0.3%. As a merchant, you can access up to N1 million daily with the OPay merchant loan.

How does the Long-term loan work?

The long-term merchant loan gives you the option of borrowing funds within a 28–42 days timeframe, enabling you to select a loan amount up to your pre-approved credit limit.

Eligibility Requirements for OPay Loans

To be eligible for an OPay loan, you must generally meet the following criteria:

OPay Loans are currently only available for merchants who use the OPay Point-of-Sale (POS) system for transactions. Here are the identified requirements:

• Active OPay Merchant Account: You must have an active merchant account on OPay. This implies you have a registered business and are using the OPay system for your sales.
• Minimum Transaction History: You need to be using the OPay POS system for at least 60 days before applying for a loan. This allows OPay to understand your business activity and determine your creditworthiness.
• Merchant Level: Different merchant levels (Regular, Gold, and Platinum) come with varying loan eligibility and interest rates. 

To apply for a Merchant Loan, follow these simple steps:

1. Login to Your OPay Merchant Account: Open the OPay app and log in to your merchant account.
2. Navigate to “Merchant Loan”: On the homepage, locate and click on the “Merchant Loan” icon.
3. Review Terms and Conditions: Understand the loan terms and conditions presented and agree to them.
4. Specify Loan Amount: Enter the desired loan amount in the provided field.
5. Submit Application: Once details are filled, submit your application.

OPay promptly reviews your loan application and communicates the decision within 24 hours.

Upon approval, the loan amount is disbursed directly to your OPay wallet.

Eligibility

Borrowing from Opay is a straightforward process, primarily hinging on meeting essential eligibility requirements:

1. Nigerian Citizenship: To access Opay loans, you must be a Nigerian citizen.
2. Registered Opay Account: A crucial prerequisite is having a registered Opay account.
3. Valid BVN: A valid Bank Verification Number (BVN) is a non-negotiable requirement.
4. Identification Document: You must possess a valid means of identification, such as a National ID card, driver’s license, or international passport.

Meeting these criteria opens the gateway to applying for a loan with Opay.

How to Apply for an OPay Loan (Using the OPay App)

1. Download and Install the OPay App: If you haven’t already, download the OPay app from the Google Play Store or App Store and create an account.

2. Locate the “Loans” Section: Open the app and navigate to the “Loans” section. This might be a dedicated tab or banner within the app interface.

3. Choose easmoni

4. Enter Loan Details: Specify your desired loan amount and preferred repayment period.

5. Provide Additional Information: You will be prompted to provide additional information, such as your Bank Verification Number (BVN) and employment details.

6. Review and Submit Application: Carefully review the loan terms, including interest rates and fees, before submitting your application.

7. Await Approval: OPay will assess your application and notify you of the decision within a short timeframe.

Alternative Application Method (USSD Code):

For users without smartphones or internet access, OPay offers an alternative application method through a USSD code. Dial *955# using your registered OPay phone number and follow the prompts to initiate the loan application process.

How to apply for OPay merchant loan?

Follow these easy steps to access the OPay Merchants Loans;

• Launch the OPay User App and update the app if you do not have the ‘Merchant Loan’ on your OPay homepage.
• Click on ‘Merchant Loan.’
• Review and agree to terms of service.
• Click on ‘Merchant Loans Credit Limits.
• Select the loan type you want to apply for and follow the process to complete the loan application.

Repayment Options for OPay Loans

OPay doesn’t directly offer loans, but partners with a microfinance bank, Blue Ridge Microfinance Bank, to provide loans to merchants only, not regular users.

Here’s what you need to know about OPay Merchant Loan repayments:

Repayment Methods:

• Manual Repayment: You can manually repay your loan partially or in full through the OPay app.
  • Go to “My Account” -> Merchant Loans -> Select the loan -> Click “Repay.”
  • You can then choose to pay from your OPay wallet, another OPay account, or an external card.
• Automatic Repayment: If you don’t manually repay by the due date, OPay will automatically deduct the remaining balance from your OPay merchant wallet until the loan is fully paid.

Frequent asked questions

How will I get the Loan when it has been approved?

Once your loan has been approved, you will get the agreed amount in your OPay wallet.

How can I Increase my loan limit?

You can increase your loan limit by actively using the OPay app or POS to perform transactions like; withdrawals, transfers and bill payments.

How do I repay my OPay Merchant Loan?

Once you have received the funds for your OPay Merchant Loan, you’ll repay them any time. When you visit the “My Account” page for your OPay Merchant Loans account, you’ll see any outstanding loans listed. You can simply click “Repay” to see the options available for repayment. OPay will begin to automatically deduct the remaining balance from your OPay merchant wallet until the full amount of money owed is fully paid if you do not meet up with the timeline.

What is an OPay merchant?

An Opay merchant is a business owner who has registered their company with Opay and enabled it to accept customer payments. The merchants can use the Opay app to process payments, receive notifications, and manage their businesses.

How do I register as a merchant with OPay?

It’s really easy! Go to Google Play and download OPay. Then, follow the instructions to register your account. After setting up your account, send an email to [email protected] requesting for an OPay merchant registration form.

Which bank owns OPay?

Opera Norway

OPay Digital Services Limited is a company founded by Opera Norway AS Group with footprints in emerging markets across Asia, Africa and Latin America in countries like Mexico, Nigeria, Egypt and Pakistan.

What is the full name of OPay?

Yes, Opay is the short name but the full name is Opay Microfinance Bank Limited. As a microfinance bank, OPay focuses on providing financial services tailored to the needs of individuals and small businesses. This includes services like savings accounts, loans, and digital payment solutions.

How to earn money on OPay?

Refer friends and family: OPay offers referral bonuses to users who invite others to use the app. Once someone signs up using your referral code, you and the person you referred can earn a bonus.

Which is better between OPay and Moniepoint?

Opay PoS is reliable in network connectivity with automatic reversals in place in the event of downtime. Moniepoint boasts 99% uptime in network connectivity.

Is OPay approved by CBN?

OPay is licensed by CBN and all deposits are insured by NDIC

How much can I receive in my OPay Tier 2 account?

The daily limit for tier 2 is 200,000 naira.

Is it safe to keep money on OPay?

Opay, Kuda, Palmpay , moniepoint are few fintech companies licensed by Cbn and NDIC (Nigeria Deposit Insurance corporation). That means your money is well secured as the same as conventional banks.

Which country is Opay from?

Factbox

APP NAME:	OPay
DEVELOPER:	OPay Digital Services
COUNTRY:	Nigeria
RELEASE DATE:	August 2018
PLATFORMS:	Android, iOS

Is OPay for Nigeria only?

No! Nigeria is not the only country using OPay as a payment service. Some countries in Asia, South America and Africa are also using the Opera Group fintech company.