Is Palmcredit Safe? How Much You’ll Repay If You Borrow ₦50,000 Today

Mobile loan apps like Palmcredit have become a lifeline for Nigerians in need of urgent cash. With just a few taps on your phone, you can access quick loans without collateral. But here’s the catch — while Palmcredit is considered more “mild” compared to notorious loan sharks, its high interest rates and repayment system can still trap you in financial stress if you’re not careful.

Before borrowing, you need to fully understand Palmcredit’s interest rate, repayment model, and potential risks, so you don’t end up paying back double the amount you borrowed.

Palmcredit Loan Review

• Category: Mild Loan
• Interest Rate: About 33% monthly
• Loan Tenure: 14 – 30 days (short-term)

Palmcredit offers quick loans but at steep interest charges. While the company claims to respect repayment schedules, multiple borrower experiences suggest otherwise — from excess charges to persistent calls.

Palmcredit Interest Rate Explained

Let’s break it down with a real example:

• If you borrow ₦20,000 for 30 days at 33% interest, you’ll repay:
  
  • ₦20,000 (principal) + ₦6,600 (interest) = ₦26,600 in 30 days.
• If you borrow ₦50,000, repayment will be:
  
  • ₦50,000 (principal) + ₦16,500 (interest) = ₦66,500 in 30 days.

Now imagine missing your due date. The overdue charges pile up quickly, sometimes making borrowers pay 50%–100% extra.

Things to Watch Out For with Palmcredit

1. Respectful but Persistent Collections
   Palmcredit is known to send repeated reminders through calls and WhatsApp. While not as aggressive as illegal apps, some borrowers still reported harassment.
2. Don’t Pay Overdue Interest
   If you’ve already cleared the capital + agreed interest, don’t fall for unnecessary “overdue” demands.
3. Avoid Borrowing to Repay
   Many borrowers fall into a debt cycle, borrowing from one app to repay another. This only worsens financial instability.
4. Block Unwanted Calls
   Use Truecaller to filter out collection agents if the communication becomes overwhelming.

Borrower Experiences with Palmcredit

• Some borrowers claim Palmcredit charges hidden overdue interest even after partial repayment.
• Others reported harassment calls to them and their emergency contacts.
• Many noted that while Palmcredit positions itself as “different from loan sharks,” their agents sometimes use fear tactics and defamation, especially for overdue debts.

Final Verdict: Should You Use Palmcredit?

Palmcredit might work for someone who needs quick emergency cash and can confidently repay within 30 days. However, at 33% interest, the cost is extremely high.  Example: Borrowing ₦100,000 means paying back ₦133,000 in just one month. If you miss repayment, it could climb above ₦150,000 with penalties. If you must borrow, do so responsibly — and only when repayment is 100% certain. Otherwise, it’s better to seek cheaper alternatives like:

• Cooperative societies
• Salary advance schemes
• Friends and family

Palmcredit may not be the worst loan app out there, but it’s far from “friendly.” Borrow only if you’re disciplined enough to repay on time — otherwise, the interest rates and potential harassment could outweigh the short-term relief.

ALSO READ: 15 Things to Consider Before Borrowing Money from Loan Apps