How Migo Loan Works

How Migo’s Digital Lending Process Works: Applying for Loans, Approval, and Repayment

Migo is a fintech company that provides automated, online loans to consumers in Nigeria. Their technology-driven platform offers a convenient way for eligible applicants to get approved for and receive needed funds completely through their mobile phone.

This comprehensive guide covers key aspects of accessing loans through Migo, including creating an account, getting approved, loan disbursal, setting up repayments, and using the funds responsibly.

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Introduction to Migo

Founded in 2013, Migo provides collateral-free, short-term loans ranging from ₦1,500 up to ₦500,000 to working professionals in Nigeria.

Using alternative data like mobile phone usage, airtime purchases, app usage, and other non-traditional metrics, Migo can assess creditworthiness and extend loans without requiring payslips, bank statements, or collateral. This increases access.

Once approved, funds are instantly disbursed into the borrower’s bank account. Loans must be repaid in 1-6 months through flexible options. Migo aims to provide inclusive financial services by leveraging technology.

Eligibility Criteria for Migo Loans

To qualify for a Migo loan, applicants must fulfill the following eligibility criteria:

  • Be at least 18 years old
  • Have a valid personal bank account with a Nigerian bank
  • Ensure your BVN is linked to your bank account
  • Possess a smartphone with an active internet connection
  • Have a valid means of income or steady cash flow
  • Provide personal details like BVN, employer name, guarantor contacts, ID
  • Pass automated KYC, identity, credit, and risk assessment checks

Meeting these parameters makes your loan application more likely to get approved.

Step-by-Step Process of Applying for a Migo Loan

Follow these steps to apply and get approved for a Migo loan through their mobile app or website:

  1. Download the Migo app on your smartphone or visit
  2. Create an account and provide your personal details when prompted
  3. Select your desired loan amount and preferred repayment structure
  4. Answer the data-driven risk assessment questions presented
  5. Give permission for Migo to access your phone, bank, and credit data
  6. Wait 2-3 minutes for automated review of your application
  7. Receive instant decision on loan approval or denial based on your eligibility

The whole process from application to decision takes just minutes. No physical documents required.

Loan Amounts and Repayment Options

Based on your creditworthiness, Migo offers approved loans from ₦1,500 up to ₦500,000 with flexible repayment options:

Single Payment Loan

  • Loan amount: ₦1,500 – ₦500,000
  • Repayment: Full lump sum repayment on next pay date

Installment Loan

  • Loan amount: ₦10,000 – ₦500,000
  • Repayment: Equal installments over 3-6 months

Payroll Loan

  • Loan amount: Up to 50% of monthly net income
  • Repayment: Automatically deducted from salary over 1-12 months

Repayment amounts and dates agreed during application. Late fees apply for missed payments.

Getting Your Approved Migo Loan

Once approved, the process to receive your Migo loan into your bank account is quick:

  • Loan agreement is displayed with repayment schedule, interest and terms
  • Digitally sign the agreement and accept via one-time password
  • Approved loan amount is instantly disbursed into your registered bank account
  • Notification is sent when the disbursal is completed
  • Repayment automatically commences on next scheduled date

No need to visit a branch. The entire borrowing and repayment process is digital.

Setting Up and Managing Migo Loan Repayments

Migo allows borrowers flexibility in repayment. You can set up automated payments or manually repay through:

  • Migo app – Pay via bank transfer, debit card, mobile money
  • USSD – Dial *561# to repay through phone menu prompts
  • Partners – Over-the-counter cash repayment at branches
  • Autopay – Set up automated installment deductions from bank account

To avoid late fees, carefully set reminder for repayment dates. Contact Migo if repayment challenges arise.

Using Migo Loans Responsibly

While Migo makes accessing fast cash easy via mobile, borrowers should use the loans responsibly:

  • Only borrow what you can reliably repay on schedule from your income.
  • Avoid taking the maximum loan amount permissible if realistically unable to repay.
  • Have a clear purpose for the funds rather than frivolous spending.
  • Don’t borrow from multiple lenders simultaneously.
  • Build savings to reduce dependence on debt for everyday expenses.
  • Monitor credit score impact and maintain strong creditworthiness.
  • Contact Migo early if repayment schedule affects cash flow or if delays seem likely.

By borrowing and repaying wisely, Migo loans provide easy access to capital for your needs without creating a debt trap.


In summary, Migo offers an innovative, convenient way for eligible Nigerians to access short-term personal loans completely through their mobile phone. By fulfilling key eligibility criteria, completing the user-friendly application, accepting loan terms digitally, and setting up repayments using various options, borrowers can get access to capital within minutes without collateral or paperwork. Responsible borrowing and repayment can make Migo loans an asset in managing cash flow needs.

Frequently Asked Questions

Can loans be repaid early?

Yes, you can repay your full outstanding loan early without prepayment penalties. This can reduce interest costs.

What if I miss repayments? Migo will try to contact you regarding missed payments before marking your account delinquent. They aim to understand issues and work out solutions before taking further action.

How does Migo use my personal data? Migo explains they use your data strictly to assess loan eligibility using technology and protect your personal and financial information with encryption.

Can I take multiple simultaneous loans? This is generally discouraged. Speak to Migo first before taking concurrent loans as it may impact your credit score and repayment capacity.

What if I face ongoing financial difficulties? Inform Migo as early as possible if facing sustained financial constraints so they can advise on best options based on your specific situation.

Let me know if you need any clarification or have additional questions on how Migo’s digital lending process works in Nigeria!

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