When borrowing from any digital loan app, one of the most important things you must understand is how the interest rate and repayment period work. This is what determines how much you’ll actually pay back and how fast your loan can grow if you delay.
SilkLoan, like most micro-lending apps in Nigeria, provides short- to mid-term loans with clear repayment structures. But many users still don’t fully understand how the daily, monthly, and total interest are calculated and that’s what we’ll explain in this full breakdown.
How SilkLoan Calculates Interest
SilkLoan’s interest is calculated daily, and the system automatically applies the rate based on your loan amount and tenure. The app shows the total repayable amount before you confirm your loan, but let’s break it down in simple terms.
According to official app data and verified reviews:
- Annual Percentage Rate (APR): 12% – 36.5%
- Daily Interest: Around 0.1%–0.3%
- Loan Duration: 90–360 days (can be shorter for first-time users)
- Loan Range: ₦2,000 – ₦200,000
That means if you borrow ₦12,000 for 180 days at 0.1% daily interest, here’s the breakdown:
₦12,000 × 0.1% × 30 × 6 = ₦2,160
Total Repayment = ₦12,000 + ₦2,160 = ₦14,160
Monthly Installment = ₦2,360 (if split into 6 months)
You can always use their in-app calculator to check your repayment before confirming any loan. This helps you see exactly how much interest will add up over time.
Understanding SilkLoan’s Repayment Duration
The repayment period on SilkLoan depends on your loan history, credit score, and user level.
- New users: Usually get 7 to 14 days (short-term repayment).
- Returning users: May get up to 90 days, 180 days, or even 360 days after consistent repayment.
Each loan comes with a clear due date shown in your dashboard. Once you collect the loan, you can track how many days are left before payment.
Tip: Always confirm your repayment date before you accept a loan. Many users get caught by short terms (7 days) and end up paying penalties because they expected a longer time.
What Happens If You Delay Repayment?
SilkLoan is quick to penalize delayed repayment, just like most loan apps.
If you don’t pay back on time, here’s what happens:
- Late Fee Starts Counting Daily –You can be charged 1% to 5% daily on overdue balances.
- Auto Reminder & Calls – They send frequent reminders through SMS and notifications.
- Contact Alerts – In serious cases, they can send messages to contacts saved on your phone (common across many apps).
- Credit Report Impact – If your BVN is linked across digital lenders, it can affect your access to future loans.
That’s why it’s always better to repay early or even a few days before your due date. It saves you from hidden charges and bad loan history.
How to Check Your Current Interest or Repayment Plan
To check how much you owe or how interest is being calculated:
- Open the SilkLoan app.
- Go to the “My Loan” section.
- Click on your active loan.
- You’ll see a breakdown of:
- Principal
- Interest + Fees
- Total Repayment
- Remaining Days
If you plan to repay early, the amount will adjust automatically based on the number of days you’ve used.
Example of Interest and Repayment Calculation
| Loan Amount | Duration | Daily Interest | Total Interest | Total Repayment |
|---|---|---|---|---|
| ₦5,000 | 90 days | 0.1% | ₦450 | ₦5,450 |
| ₦10,000 | 180 days | 0.1% | ₦1,800 | ₦11,800 |
| ₦20,000 | 360 days | 0.1% | ₦7,200 | ₦27,200 |
These are sample calculations based on the app’s official rate; actual amounts may differ slightly depending on your score and repayment record.
How to Reduce Your SilkLoan Interest
If you want to get lower interest rates or longer repayment periods in future loans, follow these tips:
- Repay early or on time — it builds your credit score automatically.
- Avoid multiple unpaid loans — delays make your rate go up.
- Update your personal details — complete your KYC, add BVN, and use the same number linked to your bank.
- Use the app frequently — regular users often get better loan offers with lower rates.
Key Facts to Remember
- Minimum loan: ₦2,000
- Maximum loan: ₦200,000
- Duration: 90 – 360 days (can vary)
- APR: 12% – 36.5%
- Late penalty: 1% – 5% daily
- Repayment method: App payment, auto-debit, or transfer
Final Thoughts
SilkLoan offers flexible loans with a simple structure, but the interest can grow fast if you don’t understand how it’s calculated.
Always check the total repayable before confirming any loan, and don’t borrow what you can’t repay on time.
The app is safe and functional, but it’s only convenient when used responsibly. Early repayment not only saves you money but also increases your credit limit for the next loan.
