How I Borrowed Money Without Collateral on PayLater – How it Works

Looking for how to borrow money without collateral on PayLater? You are in the right place as I’m going to share my experience with you on this simple, entirely online lending platform that provides short-term loans to help cover unexpected expenses or urgent cash needs.

Before I share my #PayLaterStory with you, it’s important to note that PayLater loans should be used with care and for specific needs. If you don’t have the wherewithal to pay back as at when due, stay away from it.

Who Can Borrow Money Without Collateral From PayLater?

Earlier versions of PayLater services has two packages – PayLater and PayLater plus. The PayLater package was open to everyone: whether you are student, business owner, salary earner, or just in between jobs and in need of funds. While the PayLater Plus package was designed for salary earners.

Currently, both packages have been merged into one. This means, you don’t need any collateral, guarantors, or documents to access loans from PayLater even as a salary earner.

PayLater Loans, Fees, & Interest Rates

After my one year profitable investment experience on cryptocurrency, I started looking for quick loan to build my capital base. My search led me to PayLater’s ads which promises to give loan up to #1,000,000. So,  I thought I should try it out.

Visiting, I was redirected to download the PayLater app from Google Play Store. I got the less than 10 MB APK installed in minutes and ready for registration.

Welcome to PayLater app

The PayLater registration process is simple and fast. You will be required to enter your real names as seen on your bank details,  your email address,  your exact date of birth, and your personal phone number. Entering correct information is important as it will affect your chances of loan approval. 

After completing the registration process and login into the app proper, you will be asked a couple of questions. Regular stuff like your age, occupation, living habits and income level. There’s about 3 pages of questions, all of them brief and not necessarily annoying. They also ask for your account number and BVN.

BVN!!! But Why?

I was skeptical too when I saw the BVN requirement to grant me a loan. Searching through the Paylater FAQ page explained it “verify that the individual applying for a Paylater loan is the same as the owner of the provided bank account.”

That makes a lot of sense. If they are going to be granting out automatic loans, they want to be sure that the details being entered on their site are the same as the account they are paying to. That’s pretty much all they can do with your BVN — verify your details. Your BVN details cannot be compromised without your biometric data.

My First PayLater Loan

My need to increase my capital base on winthrills network real estate investment was what prompted me to take my first loan. I was granted #10,000 the first time and as at today, I can access 200,000 loan from PayLater with #1,000,000 target.

How I Borrowed Money Without Collateral on PayLater - How it Works

I was able to achieve this by avoiding late repayments or defaults. My ability to pay up on time was rewarded with good rating, which I have used in obtaining more attractive loan terms.

PayLater Fees & Rates

A Paylater loan attracts interest rates starting from as much as 30% monthly or 1%daily on the first loan. On my first #10,000 PayLater loan for instance, I was given a 15 or 30 days payment option to pay #11,500 or #13,000 respectively.

As I kept repaying on time, I was given access to #20k, 30k, 100k and now 200k with current interest of 5% (#10,000) monthly for a six months repayment duration, totally 30% (#60,000). This means, for a 200k loan, I will repay 260k at the end of 6 months.

My loan from PayLater, fees and interest rates

From my WINThrills investment calculation, a 200k Investment on, say high street gives 0.48% daily return on investment. In 30 days, I make 0.48 x 30 = 14.4%. I use 5% of this profit to pay up my loan leaving me with 9.4% profit every month.

Getting Started With PayLater

It’s simple! Just follow the steps below to apply for a Paylater loan:

1. Download the Paylater app here

2. Register your personal details

3. Choose your desired loan amount and duration. When asked for a referral /Sponsor Code, use OTHUK5L9P

4. Submit your application. You will get a loan decision in seconds.

5. If approved, your account is credited within 30 minutes.

How to Pay Back PayLater Loans

To pay back PayLater loans works exactly like how you received loans. Seven days before the due date, they send you are reminder through SMS and email to start making plans for repayment. You can either pay manually by entering your ATM card details right inside the app or PayLater will automatically debit you on the due date by the amount you owe.

You can probably see now why it was necessary to ask all those seemingly annoying questions like “how much do you earn?” and “do you have kids”.

Apparently, Paylater has an algorithm programmed to guess, to some high level of accuracy, whether or not you have the means to pay back the loan when due. It’s a risk they are willing to take.

But what happens if Paylater doesn’t meet any money in your account or you can’t payback before the due date? Well you risk suspension of your account, a bad rating among other credit bureaus and ‘possible legal action’.

Other Benefits of Using PayLater

PayLater adds more features

Announcing via their twitter handle, in their next PayLater app update, users will be able to process funds transfer, bills payment and airtime recharge. You can sign-up to be among the first 1,000 persons to test out the upgraded PayLater features here.

Paylater Update July 4th – PayVest: a fixed-interest investment account to grow your wealth with Paylater!

Payvest by Paylater
PayVest: a fixed-interest investment account to grow your wealth with Paylater!

As of today, Paylater has updated its app wi4th an investment feature called Payvest that allows users to invest and get at least 3 times what your bank currently offers you on savings.

You can setup up to 5 plans towards different goals in the app — whether it’s a 3-month investment in your next holiday, or a 12-month plan towards a house— PayVest offers the flexibility you need.

Single investments can range from ₦50,000 to ₦10 million with annual interest rates of up to 15.5%. Payvest investment offer is irresistible.

Setting up Payvest

  1. Download the updated Paylater app from the Google Play Store
  2. On the Home Page, click ‘Activate PayVest’ and enter the amount you would like to invest
  3. Name your investment plan (bonus points for anyone who names theirs ‘I ❤ Paylater’!) and then confirm the terms
  4. We’ll provide a customized account for you to transfer your investment to, and, boom! Your investment is locked in. 💰

It’s that easy.
This is pretty much about my experience with how I borrowed money without collateral on PayLater and enjoy cool investment rates from Payvest. You can use the comment section below to share your experience using PayLater and Payvest below.


I am an Electrical Engineer and a blogger who loves to share about latest Tech news, Online money making ideas, Gadget reviews, Security, Computers, Android etc. You can capture him on: Facebook, Google+, Twitter, Pinterest, BBM, Telegram.

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