AI agents for business finance: what they can and can't do
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The short answer
A rate of 0.5% a day means 15% over 30 days, because 0.5% × 30 = 15%, and about 182.5% a year on a simple basis (0.5% × 365). On a ₦50,000 loan that is ₦250 a day and ₦7,500 over 30 days in this labelled example, before any fees; if interest is added to the balance daily, the 30-day cost rises to about ₦8,070.
Some loan apps quote interest per day. A daily figure is small enough to sound harmless: half of one percent, a few hundred naira. The problem is that you pay it every day you hold the money, so it needs converting to the same basis as other offers before you can judge it. Here is how, with labelled examples.
The arithmetic
- Per day: amount × daily rate. ₦50,000 × 0.5% = ₦250.
- Over 30 days, simple: daily rate × 30. 0.5% × 30 = 15%, so ₦7,500.
- Over a year, simple: daily rate × 365. 0.5% × 365 = 182.5%. Using a 360-day year gives 180%, which is why you may see 'roughly 180%'.
- Compounded daily over 30 days: (1.005)30 − 1 = about 16.14%, so about ₦8,070 on ₦50,000.
Whether interest is simple or compounded depends on the agreement. Many short loans charge simple daily interest on the amount borrowed; compounding usually matters only once a loan is overdue and charges are added to the balance.
Common daily rates over 30 days
| Daily rate (example) | 30-day cost on ₦50,000 | 30-day cost on ₦100,000 | Simple yearly rate |
|---|---|---|---|
| 0.1% | ₦1,500 (3%) | ₦3,000 | 36.5% |
| 0.3% | ₦4,500 (9%) | ₦9,000 | 109.5% |
| 0.5% | ₦7,500 (15%) | ₦15,000 | 182.5% |
| 1% | ₦15,000 (30%) | ₦30,000 | 365% |
At 0.1% a day, a daily-rate loan is in the same territory as published bank personal-loan rates. Sterling Bank's loans page (checked October 2026), for instance, lists personal loan rates from 39% to 44% a year. At 0.5% a day, the yearly equivalent is more than four times that. The comparison is only a guide, because bank loans also add fees and run for longer, but it shows the scale. For short needs, compare with an overdraft too; see overdraft vs loan app.
The upside of daily interest: repaying early
If the lender charges only for the days you actually hold the money, repaying early saves directly. Labelled example: ₦50,000 at 0.5% a day repaid on day 10 costs ₦2,500 instead of ₦7,500. Not every daily-rate app works this way: some charge the full tenor's interest whatever day you repay. Check the agreement for how early repayment is treated before you rely on it. Our guide pro-rata interest when you repay early explains the methods.
Why daily rates feel cheaper than they are
A daily figure hides the size of the cost in two ways. First, the number itself is small, so it reads like a minor charge rather than a rate. Second, it is easy to multiply by the wrong period. Borrowers often think of 0.5% a day as about 5% a month, by mistake shifting a decimal, when it is 15%. Before accepting, say the 30-day cost out loud in naira: ₦7,500 on ₦50,000 is a clearer figure than half a percent. If you are comparing with a monthly-rate loan, convert the daily rate by multiplying by 30; for a yearly comparison, multiply by 365.
Fees on top
A daily rate rarely tells the whole story. Add any processing, service or insurance charge. Labelled example: ₦50,000 at 0.5% a day for 30 days plus a ₦1,000 fee deducted upfront. You receive ₦49,000 and repay ₦57,500, so the cost is ₦8,500 on ₦49,000, about 17.3% for the month. See what a ₦50,000 loan app loan costs over 30 days for the full breakdown.
When it is overdue
Many apps continue daily interest after the due date, and may add a late charge or a higher penalty rate. Labelled example: if 0.5% a day keeps running on ₦57,500 for ten days after a missed due date, it adds about ₦2,875 before any late fee. If the agreement compounds overdue charges, the figure grows faster; see how interest compounds on an unpaid balance.
Disclosure and register checks
The FCCPC's 2025 consumer lending regulations require digital lenders to disclose interest rates, repayment terms and fees before any transaction is completed, and to itemise late-payment penalties. They do not cap daily rates; the FCCPC says it will monitor whether rates are exploitative. Check that the app is on the FCCPC's approved digital lenders register and confirm the regulations' current enforcement status. This is information, not legal advice.
What to check first
- Is the rate per day, per month or for the whole tenor?
- Is interest charged only for days used if you repay early?
- What fee is charged, and is it deducted from what you receive?
- What happens to the daily rate after the due date?
- Is the app on the FCCPC register?
Where Pryme fits
Pryme does not offer daily-rate cash loans. Loans on Spaces, lent by Solid Allianze MFB for spending with Spaces merchants, shows the full cost and repayment date before you accept, so you can convert it with the same method.
Questions people ask
What is 0.5% daily interest in a month?
About 15% over 30 days on a simple basis, or about 16.1% if interest is added daily. On ₦50,000 that is ₦7,500 simple.
What is 0.5% a day per year?
182.5% on a simple basis (0.5 × 365), often rounded to about 180%.
Is 1% daily interest high?
Yes by any comparison: it is 30% over 30 days and 365% a year on a simple basis.
Do loan apps charge daily interest if I repay early?
Some charge only for days used; others charge the full tenor. The app's agreement states which; check before you accept.
Sources
- FCCPC: Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025 (made 21 July 2025) · accessed Oct 2026
- Sterling Bank: Loans (payroll, vehicle, home and SME loan terms) · accessed Oct 2026
- FCCPC: approved digital lenders register (via the FCCPC website) · 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.