Getting a loan is easy, but understanding how much you’ll repay, why the interest is what it is, and how OKash calculates it is what separates a smart borrower from just another user.
Many Nigerians today rely on OKash for short-term financial help, but most don’t know how interest and repayment actually work.
We’ve discussed about loan repayments for different loan apps such as PalmCredit, SilkLoan, Umba and many others and In this guide, we’ve explained clearly how OKash calculates interest, the repayment breakdown, and what you should always check before accepting any loan offer.
OKash operates under Blue Ridge Microfinance Bank Limited, licensed by the Central Bank of Nigeria (CBN), so their lending process follows CBN-approved micro-lending rules.
What Determines Your OKash Loan Interest Rate?
The interest rate you see in your loan offer isn’t random, OKash calculates it from several factors:
- Loan Amount – smaller loans often carry slightly higher daily interest rates.
- Tenure (Repayment Duration)—the longer your repayment period, the more total interest you pay.
- Credit Score & Repayment History – Early repayment earns you trust and lowers future rates.
- Device and Usage Data – OKash checks how active and consistent you are on the app.
- BVN & Income Verification – Verified users with steady income records get better rates.
Tip: Always ensure your BVN matches your phone number and keep your app active—these two alone can lower your next interest rate.
OKash Interest Rate Range
As of 2025, OKash uses a flexible interest system based on your risk score:
- Daily Interest Rate: 0.1% – 1%
- Service Fee: 0% – 15% (sometimes applied for first-time users)
- Tenure Range: 91–365 days
- APR (Annual Percentage Rate): 36% – 360%
Note:The rate you get is always shown before you confirm the loan, so read that screen carefully. OKash is transparent about your total repayment and due date.
Example: How OKash Calculates Interest
Let’s say you borrow ₦30,000 for 91 days at a 0.5% daily rate.
Interest = ₦30,000 × 0.5% × 91 = ₦13,650
Total Repayment = ₦30,000 + ₦13,650 = ₦43,650
If your rate is lower, say 0.2%, then:
Interest = ₦30,000 × 0.2% × 91 = ₦5,460
Total Repayment = ₦35,460
Pro Tip: Your first loan may look high because you have no record yet. Once you repay 1–2 loans on time, OKash automatically adjusts your rate downward.
OKash Repayment Breakdown
Repayment in OKash is fully automated—but here’s how it works behind the scenes:
- Principal: The amount you borrowed.
- Interest: The total cost of borrowing based on your rate.
- Service Fee: Any processing or platform charge (only for first-time users).
- Repayment Date: Shown before you accept the loan.
Repayments can be done through the OKash app, auto-debit, or manual transfer (in-app account shown). Once you pay, the balance updates automatically, and your next loan offer refreshes within hours.
What Happens When You Repay Early
OKash rewards discipline. If you repay early:
- You pay less total interest because charges stop the day your loan closes.
- Your next loan limit increases faster.
- You’ll likely qualify for longer tenures and lower interest next time.
Always repay at least a day before the due date, it gives time for system updates and helps your credit rating.
What Happens If You Repay Late?
When you miss your due date:
- Daily penalty interest (around 2% per day) starts counting.
- You’ll receive SMS and push notifications.
- Your credit history may be flagged on credit bureaus like CRC and FirstCentral.
- OKash can temporarily block new loan access.
To fix this, repay as soon as possible and contact support to update your record.
How to Check Your Repayment Details
To see your repayment info anytime:
- Open the OKash app.
- Tap “My Loan” or “Active Loan.”
- You’ll see the amount due, due date, and interest breakdown.
- Tap Repay Now to clear it directly.
How to Make Repayment (Step-by-Step)
Option 1: Inside the OKash App
- Open OKash → Tap Repay Now.
- Choose your repayment method: debit card, bank transfer, or OPay Wallet.
- Confirm payment and wait for SMS confirmation.
Option 2: Auto Debit
- If you enabled card auto-debit, OKash automatically collects payment on your due date.
Option 3: Manual Payment
- You can transfer to the repayment account shown in-app (never send to any random account).
FAQs
Q1. Does OKash have a fixed interest rate?
No. Rates vary per user depending on credit score, loan history, and repayment behavior.
Q2. Can I reduce my OKash interest rate?
Yes—repay early, maintain a good credit record, and keep your BVN and app data consistent.
Q3. What if I repay before the due date?
You’ll save on interest and improve your borrowing limit for the next loan.
Q4. What happens if I can’t repay on time?
Late repayment attracts daily penalties and may reduce your credit rating.
Q5. Is OKash approved by CBN?
Yes. OKash operates under Blue Ridge Microfinance Bank, licensed by the Central Bank of Nigeria.
Conclusion
Understanding your OKash loan interest and repayment plan helps you stay in control of your finances. Every loan comes with a clear breakdown, interest, tenure, and repayment amount, so take time to read before you tap “Accept.”
Borrow only what you can comfortably repay, repay on time, and use OKash as a tool to build your credit reputation, not a burden. When used wisely, OKash remains one of the fastest and most reliable short-term loan platforms in Nigeria.
