How to Borrow Money from MTN App in Nigeria | A Step-by-Step Guide

Knowing how to borrow money from MTN is instrumental, especially when one faces a sudden expenditure or when the month is proving tough and more money is needed.

One of the foremost Nigerian telecommunication providers, MTN, has provided seamless ways for subscribers to borrow money using their mobile app and MoMo. 

Borrowing from MTN is relatively easy—get it on your phone, with no need to fill out long forms or waste time at the bank. Knowing the specific code to borrow money from MTN, you can quickly secure some emergency funds using MTN MoMo.

Wondering, “Why can’t I borrow money from MTN?” you might ask. Some eligibility criteria and conditions must be met to access this service.

This guide will explain everything you need to know about borrowing money from MTN, including the steps to follow and the codes to use.

For someone new to MTN MoMo or a refresher in using MTN, one will find how to use MTN and the code for borrowing money from MTN Mobile Money in this article. Now, let’s dive in and see how you can put MTN into practice to meet all your money needs easily.

What is the MTN Mobile Money Service?

MTN Mobile Money is a handily available mobile phone-based financial service that helps users store, send, and receive money.

MTN Mobile Money allows customers to perform financial transactions, such as money transfers, bill payments, and the purchase of airtime, among others, without necessarily having a bank account.

Additionally, the eligible users can also borrow money through the service, this loan is known as Xtracash which helps such a subscriber get fast and easy loans. The money borrowed is, therefore, credited to their MTN Mobile Money account, and on the due date, the repayment is deducted from the user’s account.

This service seeks to extend the reach of financial incorporation and offer clients a secure, affordable, and convenient way of managing finances.

Read Also – Speculation: MTN will Increase data price in South Africa

What are the Eligibility Requirements to Borrow Money From MTN Mobile Money 

The prerequisites for MTN Mobile Money loans vary nationally. This is because MTN has operations in many African countries, with slightly differing rules.

However, here are some of the general requirements standard across many MTN Mobile Money Services:

1. You must be a registered MTN Mobile Money user. This essentially means that you must have an active MTN SIM card and register for the Mobile Money Service.

2. At a minimum, one should attain an age requirement, normally 18 years.

3. You must be an active MTN line subscriber for a period, normally 3-6 months, depending on the country.

4. Being a prepaid customer, postpaid plans may not be entitled to such loans from Mobile Money.

5. Have a good history of using MTN Mobile Money services: this may include the purchase of airtime and data bundles, or other uses concerning Mobile Money.

The higher the loan limit might be, the better your payment history and overall usage. Contact MTN customer care to learn the exact eligibility requirements for loans from MTN Mobile Money in your location.

How to Borrow Money from MTN App in Nigeria: Step-by-Step 

Borrowing money from MTN Mobile Money (MoMo) in Nigeria can be easy if you follow these steps. Here is a detailed guide on how to borrow money from MTN mobile money:

1. Download the MTN App

You will need an MTN mobile application, which is available on the Google Play Store for Android and the Apple App Store for iOS devices.

2. Register for MoMo

If you have not signed up for MTN’s Mobile Money service, MoMo, you should do so using the app. Afterward, follow the display prompts to provide the information necessary to open your MoMo account.

3. Navigate to the Loan Section

You will open the MTN app and log in with your credentials. Navigate to the in-app financial services section and locate Xtracash loan options.

4. Select Loan Amount

Scroll through and select the loan amount you wish to borrow. Before continuing, carefully read the terms and conditions. 

5. Confirm Loan

After the selection of the loan amount and agreement to their terms, confirm your loan request. The amount applied for shall then be credited to your MoMo wallet.

6. Repayment

Note that the terms of the loan and the agreed interest or fees shall be withdrawn from your MoMo wallet by the schedule.

7. Customer Support

If you have problems or inquiries, there is customer support by MTN through the app or their helpline. You can contact them in case of need.

Following these steps, will help you successfully borrow money from MTN and, after that, how to manage your loan using the MTN mobile app.

Also Read – MTN MoMo Expands to 10 New African Countries

What is the Code to Borrow Money from MTN Mobile Money?

The code to borrow money from MTN is *606#. This USSD code helps MTN subscribers access the XtraCash loan platform and, therefore, enables them to borrow money quickly and easily.

With *606#, one can access loans from as low as ₦5,000 to as high as ₦100,000 with a repayment time frame of up to 30 days. Interest rates do apply, and subscribers must meet qualification standards.

The *606# code makes the loan easily accessible to be useful in availing some ready cash for some tough emergencies and unexpected expenses for MTN subscribers.

How to Borrow Money from MTN Using Code

This is the step-by-step guide on how to use the code in borrowing money from MTN Mobile Money XtraCash:

1. Dial *606# on your MTN line. Select “XtraCash.”

2. Choose the amount you want to borrow from among the available options.

3. Once in, carefully consider the loan terms that would be provided – interest rate, repayment duration, etc.- and know exactly all the fees.

4. After going through the details, if you agree with the terms laid down, confirm the request for a loan.

Remember to check the conditions attached to your loan before any borrowing and ensure that the due payment is received on time to avoid extra charges and negative credit reporting.

Read Also – MTN Nigeria’s Internet Subscribers Drops over NIN-SIM Issues

Why Can’t I Borrow Money from MTN?

There could be several reasons that somebody would not be able to borrow from MTN. Common causes include: 

1. Insufficient usage history.

MTN may require some usage history to build your trust as a borrower. This would mean that you are supposed to top up your phone quite frequently to use airtime and data bundles, thereby creating a good credit profile. The time required for this usage varies, so you may have to contact MTN directly for an answer.

2. Unpaid Previous Loans

If you have taken a previous loan from MTN and have not repaid it, you are expected to repay it fully before getting another loan from MTN. This will help ensure responsible borrowing and avoid some risk factors.

3. Wrong Information

Verify that the information in your form is accurate. Mistakes in your phone number, personal details, or bank account details may delay or deny you the application.

4. Poor credit score

MTN may use a credit scoring system to determine whether one can repay the loan. Poor credit score, a factor that emanates from past borrowing history with other creditors, may weigh negatively on MTN’s consideration of an application.

5. Network congestion

The MTN system may delay responses at peak times or in the case of technical mishaps.

6. Loan product limitations

Some of the MTN loan products may have requirements or restrictions. The loan offer could be for some new subscribers or a minimum loan amount.

If you fail to learn from MTN, check out these possible explanations and fix any outstanding issues before you can try again.

Are There Any Fees Associated with Borrowing Money from MTN?

Yes, there are extra charges when one borrows money from MTN Mobile Money XtraCash. The charges are as follows: 

1. Interest Rate: The interest rate depends on the proportion of the loan amount which is usually between 10% and 15% a month. This is a daily interest rate that applies to the principal amount lent. 

2. Service Fee: This is a flat charge for processing the loan, usually around 1 – 2% of the borrowed amount. This amount will already be deducted from the loan amount disbursed to you.

3. VAT (Value-Added Tax): A tax levied on interest and service fees. This is usually about 7.5% of the interest and service fees.

4. Default Fee: This is charged if there is a failure to pay by the scheduled due date; this often ranges from 1% to 2% per day over the outstanding balance. The same is charged so that one may make a timely repayment.

5. Late Repayment Fee: An additional amount is charged if the repayment is made after the due date, usually a flat fee or a percentage of the outstanding balance. This fee is charged to deter late repayments.

Please note that the fees here depend on the amount lent, repayment period, and other factors. Always go through the terms and conditions for any loan offer before accepting it to understand exactly how much it will cost you in fees to take out a loan.

Also Read – MTN Exits Guinea-Bissau and Guinea-Conakry

How to Repay the Loan Borrowed from MTN Mobile Money?

Steps to repay MTN Mobile Money XtraCash loan are:

Using USSD Code

1. Dial *606# on your MTN line.
2. Choose “Repay Loan”.
3. Enter the amount you want to repay.
4. You can either pay partially or in full.
5. Confirm the request for repayment.
6. You will get an MTN acknowledgement message.

Using MTN Mobile Money App

1. Open the MTN Mobile Money application on your smartphone.
2. Enter your PIN and registered phone number to dial in.
3. Proceed to “XtraCash.”
4. Select the “Repay Loan” option.
5. Enter the amount you want to repay. You can make Payment in full or in part.
6. Confirm your repayment request.
7. Wait for the confirmation message from MTN.

Automatic Debit

MTN Mobile Money will automatically debit your account on the due date if you have enough funds.

Make your repayments on time to avoid extra charges or adverse credit reporting. Need help? Call MTN customer service for assistance if you’re having trouble repaying. 

Read Also – MTN Group Appoints New Group Executive for Regulatory Matters, Mike Silber

How to Ensure a Smooth Borrowing Process

To ensure a smooth borrowing process when borrowing money from MTN, follow these steps:

1. Check Eligibility: Check to see if you qualify based on age, credit history, and an active MTN subscription.

2. Mobile Money Registration: You must register an MTN Mobile Money account if you intend to receive loans from MTN in the form of XtraCash.

3. Keep Your Account Active: Many people have fallen victim to null accounts, which is disqualifying. Keep your MTN line and mobile money account quite active.

4. Inspect loan terms: Before accepting a loan offer, consider the interest rate, repayment period, and fees.

Following these procedures will give you a hitch-free borrowing process from MTN XtraCash.

Final Thoughts 

You can easily borrow money from the MTN App in Nigeria through the MTN MoMo service. Download the app, register your details, link your bank account, navigate to loans, select the amount you want to borrow, and follow the prompts to complete an application.

If you encounter issues like “Why can’t I borrow money from MTN?” update your app and check if you meet their eligibility criteria. Then, you can use the following code to borrow some cash on the go using MTN Mobile Money.

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Frequently Asked Questions 

Reference 

• Blog.pesasave.app – HOW TO GET A LOAN WITH MTN MOBILE MONEY.
• www.nairaland.com – How To Borrow Real Money From MTN Via MTN Xtracash – Phones – Nairaland

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