Learn How To Borrow Money From MTN QwikLoan In A Few Simple Steps
Traditionally, borrowing money in Ghana has always been a long and bureaucratic process. The lending institution, for example, must ask for proof of collateral during the process. Fortunately, it’s easier, faster, and more convenient to borrow money from MTN QwikLoan.
Before getting money from MTN QwikLoan, you need to know how to apply for loan, loan requirements and terms. With these three things in mind, it will be easier for you to apply for and get a loan. Also, knowing the repayment terms helps to avoid being listed as a default. The best part is that you can accomplish all the steps using the MTN shortcodes.
How to qualify for MTN QwikLoan
As a loan facility, MTN QwikLoan has guidelines regarding who is eligible for the loan and who is not. Since the service is virtual, it is easier to know if you are eligible for credit and, if not, what to do to qualify.
To be eligible for MTN QwikLoan, you must:
- Be 18 years of age and over.
- Have an MTN Ghana SIM card
- You must have used MTN services for more than three (3 months) or 90 days.
- Be an active user of MTN Mobile Money services and own an active e-wallet.
- Must have a good credit rating, if you have used QwikLoan services before.
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If you are eligible for the QwikLoan, read on to apply and possibly repay the loan. If you are not eligible for QwikLoan, these suggestions may help improve your chances of qualifying.
How to apply for MTN QwikLoan
The platform is based on your MTN Registration details. Therefore, in order to borrow money from MTN in Ghana, your mobile must be in your name.
To request the MTN QwikLoan, follow these steps.
- On your phone, dial * 170 #
- Go to option 5 and click on “Financial service option”.
- Choose option 3 and select “QWIKLOAN”.
- Click on the first option “Get a loan” and enter the loan amount.
- Choose the “repayment plan”.
- Enter your Mobile Money PIN code
After the application process, MTN will take some time to assess your application. If the request is accepted, you will receive an SMS confirming the loan amount and the repayment term. The confirmation SMS will also include an interest rate of 6.9%.
However, if you were not eligible for the loan, there are a few things you should assess. First, if you have an outstanding loan, it is advisable to pay it off before applying for a new loan. Second, you need to make sure that the MTN Mobile Money wallet is active.
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How much can I borrow from MTN QWIKLOAN?
If this is the first time you want to borrow money from MTN QwikLoan, your options are limited. In most cases, you can only borrow 20 GH ₵ or 50 GH ₵. However, if the loan is your subsequent application and your credit score is better, you have a good chance of getting the limit of GH1000 ₵.
If you don’t pay off your loan on time, it affects your MTN QwikLoan credit score. In this case, you must regain the credit rating by consistently using savings and MTN loans for more than three months.
How to reimburse MTN QwikLoan
After the 30 days, you must repay MTN QwikLoan. Just like in applying for a loan, the repayment processes are simple and straightforward.
The reimbursement options include:
1. Manual refund
The first and best option is manual reimbursement. This option allows you to repay the loan in installments over 30 days. To make partial payments, you must have money in your MTN Mobile Money account. Dial * 170 # and follow the refund steps.
2. Automatic refunds
Alternatively, you can wait 30 days and pay off the loan through the automatic option. As the name suggests, you don’t need any process. However, you must have the borrowed amount and the interest on your MTN Mobile Money.
After paying off your MTN QwikLoan, can you apply for a new loan on the same day? Unfortunately no. The platform takes a few days to approve another loan. However, being on time with your repayments is the key to increasing your loan limits and possibly reaching the limit of GH1000 ₵.
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How to check the QwikLoan MTN limit
After the loan is repaid, 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 on option 3 which is “QWIKLOAN”.
- Go to “Loan limit”
- Enter your Mobile Money PIN code
How to increase your loan limit on MTN QwikLoan
MTN QwikLoan has policies that determine loan limits. As mentioned earlier, the loan limit for new applicants is low. However, there are two ways you can increase your loan limit.
First, keep using MTN’s mobile money savings and lending facilities. MTN mobile money has redefined banking services and using the platform further 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. Paying off on debt is the surest way to increase your borrowing capacity. If you make repayments on time for a year, you can hit the GHG 1,000 mark ₵.
MTN QwikLoan Interest Rate
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 1000 GH ₵, you will pay 1069 GH ₵ after 30 days.
However, the interest rate changes if you default on your payment. For example, if you do not repay the loan after the agreed period, you pay a 12% interest rate against 6.9%.
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Conversely, if you default on payment after the new extended period, you may get more MTN penalties. In this case, the most severe penalty is missing on MTN loan offers within the next 90 days. The 90-day ban is subject to change, however.
To avoid these high penalties and interest rates, you can make partial payments before the 30-day deadline. For example, if you have a 1000 GH loan from MTN QwikLoan, you can make partial payments of 250 GH ₵ every week and avoid penalties.
These steps contain everything you need to know how to borrow money from MTN QwikLoan. Although the processes are subject to MTN QwikLoan terms, they follow Ghanaian banking rules. In addition, the interest on the loan meets industry standards.
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