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The short answer
You can ask Renmoney to liquidate a loan before the end of its tenor, but how much you save depends on how interest is calculated in your agreement and on any liquidation terms in it. Ask Renmoney for a written payoff figure as at a specific date, check whether future interest has been removed, and pay only once you have that figure.
Paying a loan off early can save money, free up your monthly budget and make you a stronger applicant next time. It can also save almost nothing, if the interest was fixed for the whole term at the start. The difference lies in the agreement you signed. This guide explains how early repayment, often called liquidation, usually works on a Renmoney loan, how to request it, and how to check the saving.
What Renmoney loans look like
Nairametrics reported in June 2026 that Renmoney Microfinance Bank lends ₦5,000 to ₦1 million without collateral, over 91 days to 12 months, at 2.12% to 2.65% a month (an APR of 25.44% to 31.8%), and that a 1% management fee may apply depending on the loan type. Those are the terms you would be cutting short. Our guide to Renmoney interest rates and tenors covers them in detail.
How interest affects what you save
There are two broad ways a lender can treat early repayment:
| If interest is… | What paying early does | What to ask |
|---|---|---|
| Charged on the reducing balance | You pay the remaining principal plus interest to the payoff date; later interest falls away | Confirm the payoff figure excludes future interest |
| Fixed at the start for the whole term (flat) | Saving depends on whether the lender rebates unearned interest | Ask whether any interest is waived, and how much |
| Subject to a liquidation charge | A fee is added to the payoff | Ask for the charge in naira, in writing |
Our explainer APR vs flat fee sets out why the method of charging interest matters so much.
Worked example: paying off halfway through
This is an example only, using ₦500,000 over 12 months at 2.65% a month, the top of the rate range reported in June 2026. It ignores the management fee, which is usually charged at the start and not refunded.
Reducing balance
- Monthly instalment: about ₦49,187. Full-term total: about ₦590,248.
- After 6 instalments (about ₦295,124 paid), the balance still owed is about ₦269,576.
- Paying that off then brings the total paid to about ₦564,700.
- Saving compared with the full term: about ₦25,548.
Flat interest
- Interest for the full term: ₦500,000 × 2.65% × 12 = ₦159,000. Total ₦659,000, or about ₦54,917 a month.
- After 6 instalments (₦329,500 paid), ₦329,500 remains on the schedule, of which ₦250,000 is principal.
- If the lender waives the unused interest, the payoff could be close to ₦250,000, saving up to ₦79,500.
- If no interest is waived, the payoff is ₦329,500 and paying early saves nothing except time.
The gap between those outcomes is the reason to ask for a written figure before paying.
Steps to liquidate a Renmoney loan
- Find your loan reference and current schedule in the Renmoney app or your loan documents.
- Contact Renmoney through the channels in the app and ask for a liquidation or payoff quote as at a specific date.
- Check the quote: remaining principal, interest to that date, any charge, and the total.
- Pay the exact amount by the date given, using the payment method Renmoney specifies.
- Ask for written confirmation that the loan is closed and that any card debit or direct debit mandate has been cancelled.
- A few weeks later, check that your credit report shows the loan as settled.
If a debit continues after the loan is closed, raise it with Renmoney first and keep the reference. Our guide Renmoney customer care, repayment and complaints covers escalation. Repaying in full and on time also helps your record with Nigerian credit bureaus; see how credit bureaus work.
Common problems and how to avoid them
- Paying the wrong amount. Interest accrues daily on many loans, so a payoff figure is valid for a specific date. Pay a day late and the figure may no longer clear the loan.
- Paying an instalment and the payoff together. If a scheduled debit runs on the same day, you may overpay. Ask Renmoney to pause it, or time the payoff to fall after the debit.
- No written closure. Without confirmation, a small leftover balance can turn into late charges and a negative bureau entry.
Is early repayment always worth it?
Usually, if interest falls away. But do not empty your emergency savings to do it: if you then borrow again at a higher rate, the saving disappears. A partial prepayment, if Renmoney accepts one, can be a middle path; ask how it would change the remaining instalments.
Where Pryme fits
On Loans on Spaces, the agreement from Solid Allianze MFB shows the amount, cost and repayment date in full before you accept, so you can see what an early repayment would change.
Questions people ask
Can I pay my Renmoney loan before the due date?
You can ask Renmoney for a liquidation quote. Your agreement sets whether interest is reduced and whether any charge applies.
Does Renmoney charge for early liquidation?
We could not source a published liquidation charge. Ask for any charge in naira, in writing, before paying.
Will paying off Renmoney early reduce my interest?
It depends on how interest is calculated. On a reducing balance, later interest usually falls away; on flat interest, it depends on whether unearned interest is waived.
How do I stop Renmoney debiting my card after paying off?
Ask Renmoney for written confirmation that the loan is closed and the debit mandate cancelled. Raise any later debit with Renmoney and your bank.
Sources
- Nairametrics: Top 10 highest rated loan apps in Nigeria (June 2026) · accessed Oct 2026
- FCCPC: Registration of digital money lenders under the digital lending 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.