PalmPay is quite popular among Nigerians for its reliability and access to a range of digital banking services, making it a convenient choice for mobile and agency banking.
One of the services used on the platform is a third party solution called Flexi, a loan product provided by Blooms Microfinance Bank.
As Flexi is one of many services available on PalmPay, some users mistakenly assume that PalmPay offers loans, leading to a common misconception.
It is important to note that there is no “PalmPay Loans” product. PalmPay is a comprehensive mobile banking platform that offers various financial services, with Flexi Loans being just one of the options available through a partner provider.
This article will provide clarity on what Flexi Loans are, how they operate, and how they complement PalmPay’s broader financial service offerings.
What Are Flexi Loans?
Flexi Loans, powered by Blooms Microfinance Bank and regulated by the Central Bank of Nigeria (CBN), provide users with quick and accessible loan options. Available on the PalmPay platform as a third-party service, Flexi Loans offer added convenience for PalmPay users seeking lending services.
The Flexi app is also available on either the Play Store or Apple App store which also supports the fact that the brand operates independently and is solely responsible for all aspects of loan issuance and collection.
How Flexi Works
Flexi provides two main types of loans; Flexi Cash and Flexi BNPL, which can either be accessed through the dedicated Flexi app, or on the PalmPay app. Users can choose to repay amounts either through automatic deductions from a linked bank account or card, or manually by crediting their PalmPay wallet if the service was assessed through PalmPay.
Users who have demonstrated responsible repayment as seen from numerous testimonials, can get an extension on their credit limit over time; which simply means that a user’s credit limit increases based on consistency and good credit record. With consistent, timely repayments, customers can see their credit limits increase, providing greater access to funds over time.
Flexi Cash Loans – These are withdrawable cash loans that can be used for personal or business needs. Loan amounts vary and depend on the user’s repayment consistency and credit history. The repayment period ranges from 7 days to 4 months, with interest rates between 0.6% and 1.5%, depending on the loan size.
Flexi BNPL (Buy Now, Pay Later) – This product allows users to make purchases within the PalmPay app and repay over time at a 0% interest rate. It is specifically designed for users who want to purchase items within the PalmPay marketplace without upfront costs.
While Flexi loans offer ease and flexibility, it’s essential to use them responsibly to avoid debt accumulation. Borrowers should withdraw only as needed and plan repayments according to their financial capabilities. When users are unable to meet the repayment deadline, 3%-5% late fees begin to accrue daily.
Flexi also prioritizes transparency by providing information on fees for late payments, ensuring that users are informed and can avoid extra costs.
Why PalmPay Offers Flexi Loans Through Its Platform
There is an increasing demand for easy-to-access loans driven by limited traditional banking infrastructure and the expansion of digital financial services. According to the Enhancing Financial Innovation & Access (EFInA) report on financial inclusion, about 67% of Nigerians are either underbanked or completely unbanked. This gap in financial access has led to a rise in alternative lending options like Flexi Loans.
PalmPay, as a fintech platform, aims to enhance financial accessibility and inclusion by hosting third-party financial services like Flexi. This approach not only meets user demand but also supports PalmPay’s mission to serve as an all-encompassing digital finance platform.
To learn more about Flexi’s loan offerings or need support, you can reach Flexi’s customer care team directly at support@fleximfb.com. Follow Flexi for the latest updates on their social media channels:
