Assessment of Irorun and A1Credit loan platforms

This document is a comparison of two lending apps, Irorun and A1 credit, for Nigerian
borrowers. It provides an evaluation of the features, benefits, and drawbacks of each app to
help borrowers make an informed decision.

Irorun app
Irorun is a Nigerian loan app that offers microloans ranging from N5,000 to N50,000 to users 21
years and above. The app is available on both the Android and Apple app stores and provides
collateral-free loans with minimal documentation and a 100% online process. The loan tenor
ranges from 60 days to 90 days, and interest rates range from 3% to 5% per month with a
typical APR of 36%. Scenario( if a borrower requests 20,000 for 5 months, 3 percent of 20,0000
is 600, hence the user will pay back (600*5 +20,000= 23,000) and additional 1000 flat interest
rate on all loans. However Irorun give 0% interest to their most loyal customers and gifts on their
birthdays.
When applying for a loan, users need to provide their next of kin, update their address, add a
government-issued ID and debit card, and then apply for the loan. Repayment terms for all
loans are available for up to 180 days, and if a borrower fails to make a repayment installment
by the due date, Irorun charges a default interest rate of 0.5% per day on the unpaid sum,
starting from the due date of payment.

A1 credit
A1Credit is a mobile app that provides instant credit for personal and business needs. To
access these loans, you must be above 21 years old, employed with a stable income, and
submit your bank statement and a valid ID. The loan products ranges up to to N1,000,000 and
can be paid back between 12 to 36 months. The minimum interest rate is 3% per month and
maximum is 10% per month, with an APR of 36% to 120%. The repayment period is monthly.
For example; If you a user request a loan of N50,000 to pay back over a 12-month tenor at an
interest rate and fees of 3% per month (36% APR), the user will be paying back N18,000 in
interest. This means that the user’s total Principal + Interest repayment would be N68,000 only.
The first loan request can be up to N10,000, and loan eligibility increases with time. A guarantor
is required, and additional documents may be required for loans above certain amounts. The
loan application process is seamless, and the app can be downloaded on a smartphone.

A1Credit
Irorun

Loan amount in (N) 5,000-50,000 Up to 1,000,000

Fees(N) 400 50

Interest rate per 3-5 3-10

month (%)
 APR (%per year) 36 36-120

Loan tenor up to 6 up to 36
(months)

Default interest rate 0.5 0.5

(%per day)

App availability Apple, Android Apple, Android

Summary of findings
Both Irorun and A1Credit use Lendsqr's LaaS system and are available on Android and Apple
app stores. They provide an easy and convenient way for users to access loans with minimal
documentation and an online application process. However, potential borrowers should consider
the differences between the two apps. Irorun charges an additional flat rate of N1000 on the
principal amount alongside the interest rate. . A1Credit's interest rate ranges from 3% to 10%
per month with an APR of 36% to 120% while Irorun's interest rate ranges from 3% to 5% per
month with a typical APR of 36%. A1Credit allows for higher loans up to N1,000,000. Based on
these findings, A1Credit is a more favorable option due to its lower charges and rates, and lack
of a flat rate of N1000 on all loans.

Conclusions
Both Irorun and A1Credit offer convenient and easy ways for Nigerian borrowers to access
microloans to meet emergency needs.
However taking it into consideration even though Irorun has a better user interface and offers
loans as low as N50 for emergency needs its interest rate are not favorable and a lot users also
complained on bugs on the site(when they registered they could not login again).

A1 credit on the other hand has less complains of bugs on its site, however the UI experience is
less enjoyable than Irorun.

Recommendations
Irorun :
1. Providing a dedicated customer support hotline or email address for users who are
experiencing registration issues. This will help users get assistance quickly and
efficiently.
2. Conduct a thorough code review to identify and fix any bugs or errors that may be
causing the app to crash.
3. Irorun also being a top notch app for emergency load it will be a greater advantage if
they could reduce their rates.

References
Onwuka, C. (2023), Comparative Assessment of Irorun and Blocka Cash Lending Apps for
Nigerian Borrowers.