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The short answer
Carbon's personal loans page (October 2026) states loans of ₦10,000 to ₦1,000,000, repayment periods of 61 days to 12 months, and monthly interest of 4.5% to 30%, with a maximum APR of 195%. Its own representative example is ₦1,000,000 over 12 months at 4.5% a month, with ₦1,540,000 repayable in total.
Carbon, operated by Carbon Microfinance Bank, is one of the few Nigerian lenders that publishes its personal loan range and a worked example on its website. That makes it possible to answer the rate question with real figures. This guide sets out what Carbon states, checks its example, and shows how the cost changes with a shorter loan.
What Carbon publishes
| Term | What Carbon's personal loans page states (accessed Oct 2026) |
|---|---|
| Loan amount | ₦10,000 to ₦1,000,000 |
| Repayment period | 61 days to 12 months |
| Monthly interest | 4.5% to 30% |
| Maximum APR | 195% per annum |
| Late fee | 0.03333% per day (from its representative example) |
| Collateral or guarantor | Not required |
| Licence statement | Carbon Microfinance Bank (RC 1642222), licensed and regulated by the CBN |
Carbon's business lending is separate. Its business page states loans of ₦100,000 to ₦9.5 million, rates from 3.99% a month, and terms of up to 6 months for new customers and up to 12 months for returning ones. This article is about personal loans.
Checking Carbon's representative example
Carbon's example is a loan of ₦1,000,000 for 12 months at 4.5% a month, with a total repayable of ₦1,540,000 and an APR of 54%. The numbers add up as a flat-rate calculation:
- Interest per month: ₦1,000,000 × 4.5% = ₦45,000
- Interest over 12 months: ₦45,000 × 12 = ₦540,000
- Total repayable: ₦1,000,000 + ₦540,000 = ₦1,540,000
- Stated APR: 4.5% × 12 = 54%
The page does not set out the instalment schedule. If the loan is repaid in 12 equal monthly instalments, each would be ₦128,333.33. On that assumption, our calculation of the effective annual rate on the reducing balance is about 88%, because interest keeps being charged on the full ₦1,000,000 while the balance you owe falls each month. That is not a contradiction of Carbon's figure, but it shows why a stated APR should be read together with the total repayable. Our APR vs flat fee explainer covers the method.
How cost changes with a smaller, shorter loan
| Item | Example |
|---|---|
| Amount | ₦50,000 |
| Term | 2 months, 2 equal instalments |
| Monthly interest (example) | 10% |
| Interest (₦50,000 × 10% × 2) | ₦10,000 |
| Total repayable | ₦60,000 |
| Each instalment | ₦30,000 |
| Simple annual rate (10% × 12) | 120% |
At the top of Carbon's range, 30% a month, the same ₦50,000 over two months would carry ₦30,000 of interest on a flat basis, so ₦80,000 in total. The page does not explain how a 30% monthly ceiling fits with its 195% maximum APR (30% × 12 would be 360%), so read both figures on your own offer screen and ask Carbon if they do not match.
The late fee in naira
At 0.03333% a day, the late fee on an overdue ₦30,000 instalment works out to about ₦10 a day, or roughly ₦300 over 30 days. The fee itself is small; the larger cost of paying late is the effect on your record and on future offers.
Choosing a term: shorter is not always dearer
Because Carbon's range runs from 61 days to 12 months, you may be offered a choice of terms. A longer term lowers each instalment but adds months of interest. A short term at a higher rate can still cost fewer naira.
| Offer 1 | Offer 2 | |
|---|---|---|
| Term | 2 months | 6 months |
| Monthly rate (flat) | 10% | 5% |
| Interest | ₦20,000 | ₦30,000 |
| Total repayable | ₦120,000 | ₦130,000 |
| Monthly instalment | ₦60,000 | ₦21,666.67 |
Offer 2 has half the monthly rate but costs ₦10,000 more because it runs three times as long. It may still be the better choice if ₦60,000 a month is more than you can safely pay. The right term is the shortest one whose instalments you can meet without borrowing again.
How the limit grows
Carbon's page says borrowers get access to higher amounts by repaying early and using the app for other transactions, and to larger amounts and lower rates by repaying on time. It does not publish tiers or a timetable. In practice, first loans tend to sit near the bottom of the range. See FairMoney vs Carbon for a comparison, and growing a credit limit for the general approach.
Before you accept a Carbon offer
- Read the monthly rate, the term and the total repayable together.
- Check the instalment dates against your payday.
- Confirm the loan is from Carbon Microfinance Bank as named in the app.
- If anything about collection or data use worries you, read is Carbon loan app legit.
Where Pryme fits
Pryme does not offer cash loans. Loans on Spaces, from Solid Allianze Microfinance Bank, are spent only with merchants in Spaces; the cost and repayment date are shown in full and you accept before anything is drawn. See how it works.
Questions people ask
What is Carbon loan interest rate per month?
Carbon's personal loans page states 4.5% to 30% a month, with a maximum APR of 195%, as at October 2026. Your rate is shown in the app.
What is the maximum loan on Carbon?
Carbon states personal loans of up to ₦1,000,000. Business loans are separate and go up to ₦9.5 million.
How long can I take to repay a Carbon loan?
Carbon states repayment periods from 61 days to 12 months for personal loans.
How much is Carbon late fee?
Carbon's representative example gives a late fee of 0.03333% a day on the overdue amount.
Sources
- Carbon personal loans page (Carbon Microfinance Bank) · accessed Oct 2026
- Carbon Business loans page (Carbon Microfinance Bank) · accessed Oct 2026
- FCCPC: registration of digital money lenders under the interim framework · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.