Introducing Moni’s Rent Now Pay Later (RNPL) — Move in now, pay later.

Renting a house in Nigeria can be one of the most expensive things you could ever do with your money. Finance experts say your rent should be 30% of your annual income only but if you’ve tried to stick to this formula in Nigeria, how much success will you have?

Take Kewe for example. She is an MUA assistant working for one of the best Beauty Agencies in Lagos. Her monthly take home is N250,000 and she does her side gigs sometimes that get her about N50,000 monthly. In a good year, her annual income is N3.6 Million. 30% of that annual income is N1,080,000. She needs to find a house within this budget. Unlike other countries, rent is an annual expense in Nigeria and if you’re in Lagos, you’ll meet landlords who only take two-year rent at a go.

Another issue Kewe would face is that she needs additional money because there’s an agency fee, agreement fee and service charges which are about 10% of the rent. She’ll need about 1.3 million for the rent.

Most houses in Nigeria also aren’t furnished or even built like homes. You’ll need to build cabinets, bring in wardrobes, paint, buy furniture, set up bathrooms and so on. So, let’s say an additional N200,000 if she’s being prudent and frugal. That’s N1.5 Million which is already about 50% of her annual income.

The real worry isn’t even all these obstacles we’ve highlighted. The real question is what kind of house can she get with 1 million naira? Where would the house be located? What kind of social amenities would the environment have? What about safety? What about electricity and access to a good hospital?

When you’re renting a house in Nigeria, it’s not only about moving into a new apartment. It’s a carefully thought-out, thoroughly planned and deeply curated experience. You are not only renting an apartment. You’re looking for a better experience than you currently have wherever it is you are. There’s always a push — more light, cleaner water, safer environment, big girl life, tech bro space. You’re paying for a better life experience.

A better rent payment plan for Nigerians

The need for a better payment plan for rent in Nigeria has become increasingly urgent in recent years. With a rising population, limited affordable housing options, and a challenging economic climate, many Nigerians find themselves struggling to meet their yearly rent obligations. The traditional system of annual or bi-annual lump-sum payments can be a significant burden for those living on low incomes or irregular earnings, often resulting in missed payments, debt, and even eviction.

To address this issue, several innovative payment plans have emerged in Nigeria, aimed at providing greater flexibility and affordability for renters. One such option is the monthly payment plan, which allows tenants to pay their rent in smaller, more manageable installments, rather than in a lump sum. This can help to reduce financial stress and improve the likelihood of timely payments.

Another option is the rent-to-own scheme, which allows tenants to gradually purchase the property they are renting over a specified period. This can be an attractive option for those who are unable to afford a large upfront payment but are looking to own their own home in the long run.

In addition to these alternative payment plans, technology has also played a significant role in improving rent payment options in Nigeria. Online payment platforms and mobile apps have made it easier for renters to make payments from anywhere, at any time, and have helped to reduce the need for physical cash transactions, which can be risky and inconvenient.

With Moni’s RNPL (Rent Now, Pay Later) product, you can move into your new home without breaking the bank. Moni allows you to pay your rent over 12 months in monthly instalments, providing you with a more affordable way to rent. RNPL is a game-changer for many Nigerians who are struggling to keep up with the rising cost of rent. By breaking down the rental fee into monthly, more manageable amounts, Moni makes renting accessible to a wider range of people.

Take Kewe, for instance, who needs to pay a staggering N1.3 million in rent. But with Moni, all she needs is a 25% deposit — a mere N325,000 — and we’ll take care of the rest.

This payment method gives Kewe the freedom to use the rest of her funds for her business and personal needs.

How does the RNPL product work?

In 2021, Moni set out on a mission to empower businesses and help them thrive by providing working capital for growth. We started by supporting mobile money agents, or POS agents, enabling them to expand their businesses without collateral or high-interest rates — just trust. And guess what? They repaid us every single time.

Driven by our commitment to fostering shared prosperity, in 2022, Moni took it a step further. We helped over 10,000 businesses supercharge their operations, achieving a remarkable 3x growth with $24 million in working capital. Not only that, but we also helped Nigerians save a staggering $2.4 million.

Access to credit isn’t only a challenge for businesses but for individuals as well. People often need credit to cover important expenses like housing, which accounts for a significant portion of their income. In fact, Business Day reports that 80% of Nigerians spend 50% of their earnings on rent. The high cost of housing in Lagos is influenced by the expense of building homes. But it doesn’t stop there. Moving to a new place often involves hefty agency fees and demands of upfront rent payment, sometimes up to two years in advance, just to secure a home.

These challenges, coupled with the unfortunate experiences of unscrupulous landlords who evict tenants without valid reasons, create constant financial strain for Nigerians. To address this, we’ve introduced the “Rent Now, Pay Later” model. This innovative approach offers credit to regular workers and provides protection for landlords against unreliable tenants.

We’re not a house-hunting platform — we’re here to assist you in making seamless rent payments. Find your dream home and leave the payment to us. We’ll pay the full rent to your landlord, and you can repay us in convenient monthly instalments over a timeframe that suits your needs.

At Moni, we believe in empowering individuals and businesses alike. By providing innovative payment solutions, we’re making it easier for everyone to achieve their financial goals and create a brighter future for themselves and their communities.

In what other ways can the RNPL benefit me?

Not only is RNPL good for renters, but it’s also a game-changer for landlords. Here are a few ways it can benefit both parties:

1. Good for tenants: RNPL offers renters an opportunity to pay their rent in manageable instalments rather than having to pay a large sum upfront. This can help renters save money for other important expenses, and also build their credit score by consistently making payments on time.
2. Good for landlords: RNPL is also beneficial for landlords as it allows them to receive payments sooner and maximize their profits. With RNPL, landlords don’t have to wait for the tenant to make full rental fees upfront, instead, we make that payment on the tenant’s behalf and assist the landlord to reduce their financial risk.
3. Protection for security deposits: RNPL comes with insurance provided by a third-party company, which helps protect landlords in the event of any damage or unpaid rent. This provides additional security for landlords and peace of mind for renters.
4. Increased flexibility and convenience: With RNPL, renters can move into their new home much sooner, without having to wait for weeks or months to save up enough money for rent. This is particularly helpful for those who need to relocate quickly due to work or personal reasons.
5. Short-term savings: RNPL eliminates the need for a large upfront payment, allowing renters to save money for other expenses in the short term. This can be particularly beneficial for those who need to move quickly but don’t have the full amount of rent upfront. Also, your security deposit garners an interest rate of 10% pa, making you more money as you move into your new home.

Overall, RNPL is a win-win for both renters and landlords. It offers increased flexibility, convenience, and financial benefits for renters while also providing financial security and earlier payments for landlords. As a result, it’s quickly becoming a preferred rental option for many people.

What do I need to apply for an RNPL Loan?

To qualify for a Rent Now Pay Later Loan, you need to meet these criteria and have the following documents;

• You must be a salary earner
• Your monthly rent repayment must not exceed 50% of your monthly net salary.
• You must have an employment letter from your place of employment.
• You must be able to provide a 3–6 months bank statement of your salary account.
• You must have a work ID card.
• You must be willing to provide 25% of your total rent amount.

How can I apply for Rent Now Pay Later (RNPL)?

The whole process from application to approval may take between 24–48 hours, and sometimes, even less. Here’s how you can apply:

1. Start by visiting https://www.moni.africa/rnpl and click on GET STARTED. Fill out your personal and rent information to start your application and get a pre-approval amount.
2. Provide details of the apartment you would like to rent. This can either be a new apartment or a renewal of your existing apartment. We will then take measures to verify the validity of the apartment.
3. Once you submit your application, our credit underwriting team will review it and provide you with feedback within 5 hours. You will also get a welcome email that provides more details on your rent application. In the meantime, you can engage our rent support on WhatsApp to ask more questions you may have.
4. Once your application is approved, we’ll send you an offer letter that includes your rent payment schedule, as well as the terms and conditions of the agreement. As part of the terms, you’ll be required to make an upfront equity contribution payment of 25% of your rent amount
5. Once you accept and fulfil all terms and conditions, Moni disburses your rent payment to the property manager or the landlord.
6. Move into your house with ease and peace of mind. You can now start paying your rent monthly while reducing the financial strain on your bank account.

Whether you’re a renter seeking an affordable way to move into your dream home or a landlord looking to increase your rental income, RNPL is the perfect solution for you. So why wait? Start paying your rent monthly and experience the benefits of RNPL today!

See what some of our customers have to say:

Michael:

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Whether you’re a renter seeking an affordable way to move into your dream home or a landlord looking to increase your rental income, RNPL is the perfect solution for you. So why wait? Start paying your rent monthly and experience the benefits of RNPL today!