How to Apply for an Okash Loan and How to Check Approval – Nigeria

Okash loans have become an increasingly popular financing option in recent years. As more consumers seek flexible and convenient ways to borrow money for various needs, online lenders have stepped in to provide a stream of new loan products to meet this demand.

While they may sound obscure, Okash loans are essentially unsecured personal loans offered by online lending platforms. 

How Okash Loans Work

Okash loans are unsecured personal loans offered online with flexible terms. Here are some key things to know about how they work:

• No collateral required: Unlike secured loans like auto loans or mortgages that require an asset as collateral, Okash loans do not require you to pledge any asset. This makes them easier to qualify for but also riskier for lenders since they have no collateral to repossess in case of default.
• Quick application online: The entire application and approval process is done digitally via the lender’s website or mobile app. You can usually apply in minutes by providing basic personal and financial details.
• Funds disbursed quickly: Once approved, funds from an Okash loan are disbursed fairly quickly, sometimes within 24 hours, directly into your bank account. This makes them ideal when you need cash fast for an unexpected expense.
• Flexible terms: Okash loans come with customizable terms that allow you to choose a loan amount, repayment period, and monthly payment amount within set limits. Terms can generally range from 3-36 months.
• Competitive interest rates: While interest rates vary based on the lender and your creditworthiness, Okash loans often have lower rates than other alternatives like credit cards. Rates typically range from about 5-36% annual percentage rate (APR).
• No prepayment penalty: You are free to pay off the loan balance early without any penalty if your financial situation improves. This gives you more flexibility than most other loans.

This flexibility and online convenience are some key reasons for the fast growth in the popularity of Okash loans in recent years. Both consumers and lenders have embraced the benefits of the digital model.

How to apply for an Okash loan

Now let’s walk through the actual application process step-by-step:

• Choose a lender – Do your research to pick a reputable online lender that offers Okash loans. Look at factors like rates, fees, loan amounts, terms offered, customer reviews, etc.
• Visit the lender’s website – Go to the lender’s website or open their mobile app and click “Apply”.
• Provide basic personal details – Fill in your name, address, date of birth, SSN, contact information, etc.
• Enter financial information – Provide details of your income, current employer, existing debts, and monthly debt payments. You may need to upload payroll stubs or bank statements.
• Select loan amount and term – Pick the loan amount you need within the lender’s eligible range as well as the preferred repayment period.
• Review and submit an application – Carefully review all the information you’ve provided and submit if accurate.
• Approval decision – The lender will review your application and credit report to make a decision. Approval is usually instant but may take 1 business day.
• Sign loan agreement – If approved, electronically sign the loan agreement and promissory note.
• Funds disbursement – Once signed, funds are promptly deposited to your bank account, sometimes within 24 hours.
• Start repayment – Begin making monthly installment payments as agreed on the scheduled due dates.

The entire process, from application to funding, usually takes only a couple of days at most. The online, digital workflow makes it highly convenient and competitive with other personal loan options.

How to check your Okash loan approval status

When you apply for an Okash loan, you’ll want to know the status of your application and whether you’ve been approved or denied as soon as possible. Here are a few ways to check the status:

• Check your online account – Log into your account on the lender’s website. Usually, the status will be displayed there as soon as a decision is made.
• Mobile app notifications – Many lenders notify you of approval/denial decisions via push notifications on their mobile apps if you apply using the app.
• Email updates – You’ll typically receive an email from the lender informing you that your application has been approved or denied.
• Call the lender – If you don’t see anything online or via email after a day, give their customer support line a call during business hours. An agent can look up your file status.
• Check your credit report – A hard credit inquiry from the lender will show if they pulled your report to make a decision. Multiple pulls may mean denials elsewhere.

The best way is to keep an eye on your online account or enable notifications. In most cases, you’ll know the result instantly or within a day at the most. Speed and transparency are priorities for online lenders.

Now that we’ve walked through the key aspects of Okash loans, the application process and status checking, let’s address some frequently asked questions people have:

FAQs about Okash loans

How much can I borrow with an Okash loan?

Loan amounts approved for Okash loans vary from lender to lender but generally range from $1,000 to $50,000. The exact amount you qualify for depends on factors like your income, existing debts, credit history, and the lender’s individual lending policies. Most online lenders allow you to choose an amount within their specified limits during the application.

What is the minimum credit score required?

While credit requirements differ slightly by lender, you typically need a minimum credit score of about 600 to qualify for an Okash loan. The best rates are offered to borrowers with scores of 660 or higher. If your score falls significantly below 600, approval chances diminish considerably. Credico, for example, may approve scores as low as 550, but rates will be higher.

How long does it take to get the money after approval?

Once approved, funds from an Okash loan are deposited pretty quickly, often within one business day. Some lenders can disburse the loan on the same day if you apply and are approved before a specified cutoff time. Instant funding makes Okash loans more time-sensitive than loans from banks. The entire process, from application to receiving money usually takes 2-4 business days maximum.

Can I use an Okash loan to consolidate other debts?

Yes, debt consolidation is a common and suitable use of Okash loan funds. Consolidating multiple credit cards or personal loans into a single loan, often at a lower interest rate, can help simplify repayment and reduce costs through interest savings over time. Just make sure to pay off the old accounts once the Okash loan disburses to avoid late fees and further interest accrual.

What fees are typically associated with Okash loans?

While interest rates vary based on creditworthiness, Okash loans typically have the following standard fees:

• Origination Fees: Up to 5% of the loan amount
• Late Payment Fees: $25-40 for missed payments
• Non-Sufficient Funds (NSF) Fee: $25-35 for bounced payments
• Prepayment Penalty: None (you can pay off early without a fee)
• Collection Fees: Additional charges may apply if an account is past due

Besides these charges, there are no prepayment or overhead fees. Read all documents carefully to understand all costs involved before signing.

Additional tips for getting approved for an Okash loan

Here are a few extra tips that can help boost your chances of approval for an Okash loan:

• Check your credit report for errors and dispute any inaccurately reported items. Errors hurt scores.
• Pay down credit card balances and don’t max out existing revolving credit lines. Lower utilization ratios look better.
• Avoid applying to multiple lenders simultaneously, as multiple hard pulls can slightly ding your credit.
• Provide complete documentation of your income, like recent pay stubs, if requested. Clear income proof gives lenders confidence.
• Explain any past defaults, late payments, or collections in the “Additional Comments” section if applicable.
• Start with smaller, reputable online lenders first before applying to a storefront or subprime lenders, as approval odds are higher.
• Have backup plans ready in case they are denied, like a co-signer, reducing the loan amount, or searching for other financing options.
• Accept the loan terms offered rather than try to negotiate if approved to avoid a potential counteroffer or revocation of approval.
• Set reminders to pay on time to avoid late fees and maintain a positive payment history for future loans.

Following these best practices will optimize your profile and presentation of your financial situation to lending decision-makers. With responsible use, Okash loans can indeed provide a good borrowing option when you need funds fast.