There is a proliferation of fake loan apps in Nigeria, and in this article, we are going to release the list of fake loan apps in Nigeria inorder to warn the unsuspecting person or people from falling victim to these dubious entities parading themselves as loan providers.

What Is A Loan App?
Before we commence, let’s first of all look at the word “Loan App’. What is a loan?

According to Investopedia, “A loan is a form of debt incurred by an individual or other entity. The lender—usually a corporation, financial institution, or government—advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions“.

This means that someone who is in need of money to solve a problem(borrower), goes to someone or an organization who has the money(lender), asking to be given some amount of money for a certain period of time. The lender, either an individual, organization, or corporate entity agrees to lend the money to the person for a certain period of time, with interest added. The interest is the lender’s profit on the money given out to the borrower.

A loan app therefore is an application, published on either the playstore or ios platform, owned by loan companies, which enables people to apply for loans on the app platforms.

So How Do These Loan Apps In Nigeria Operate?
Here is how it works: If you need a loan from xyz company, you simply go to the playstore, download the xyz app, install it, then register on the platform through the app and apply for the loan, all without ever going to the company’s office, or even knowing where they are.

And if you provide the requirements like your valid ID, BVN, passport photograph, phone number, and utility bill, the company, after ascertaining your eligibility status may decide to give you the loan, or deny you. This all depends on your credit score rating.

If you’re eligible, the loan is immediately disbursed into your bank account you provided, or the wallet you created with them.

Now, here is where it gets tricky. Some credible loan companies allow the individual to determine when to pay back, while others decide when the money should be paid back. There is usually a flexible payment period for loans borrowed. But the reverse is the case with some loan apps in Nigeria.

How to Identify Fake Loan Apps In Nigeria
Negative Reviews and Feedback
This is perhaps the most obvious way of identifying these scam apps. Every app must get published on the playstore before people can download and install it. People don’t just download apps from playstore without first checking out the reviews left by others who have used or tried using the app.

For instance, when you check out 9jacash, you see reviews like this one “I collected a loan from this app, but unfortunately, their customer service is absolutely trash. I am willing to repay even before the due date but i was unable to, due to an error from their end (unable to bind card).Their customer service did not even listen to hear me talk, all they keep saying is that they will report my record. Why the threat when I am ready to pay”?

This and many of such reviews are very common with these fake loan apps. Does this mean that the genuine loan apps don’t have one or two negative reviews?Of course they do. But the fake loan apps have more negative reviews than positive ones. And you can be sure that the positive reviews are left by their cronies, partners in crime. Most of the names who drop the positive reviews are foreign names from India, USA, Philippines, etc. What business does and Indian have with Nigerian loan app? Whenever you see such, run. It’s a red flag.

2. Short Repayment Period and High Interest Rate
For every loan facility received, there is a time frame for it to be repaid. The repayment time is usually from a month and above. The fake loan apps offer very short time frame for loans to be repaid, and at very high interest. Some of them demand that you pay back the loan in 7 days! Can you imagine that? And the interest rate is very high. As high as 30% for a 7 day loan. Whenever you spot such loan apps, do not use them. They will choke you financially.

3. Abusive Practices
Fake loan apps have perfected the art of abusing and threatening their customers, even when the customers have not defaulted. A lot of these loan apps gain access to your phone contacts, emails, text messages, picture gallery, and location when you install the apps. The app can then send messages to your contacts, share your pictures and videos on social media to as many as they deem fit.

According to Clacified, “Fake loan apps have become a major issue in Nigeria owing to their aggressive collection tactics. Their modus operandi is to provide a loan in exchange for access to personal information and data on the phone, such as the contact list as well as credit and financial standing of individuals.

“Once the loan is granted—often for a fraction of what was initially requested—within a few days, representatives of the fake loan app demand payment of the money with criminal interest rates via text messages and phone calls, which quickly escalates into an operation of harassment and threats against the borrower and his or her family”.

Many people’s lives have been ruined by these fake loan apps when the operators decided to share their private photos and confidential information with the public. There are cases where these loan operators call the customer’s contacts and send them messages reporting the customer, even when the customer in question still has a day left to pay up. Violation of privacy, threatening messages, and abusive calls is one major hallmark of these fake loan apps. They make life miserable for their customers.

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https://lynkupp.com/list-of-fake-loan-apps-in-nigeria/

Avoid loan apps by any means

Baba God abeg, make I no see wetin go make me borrow money for loan app. Abeg help me God.

Bab God abeg, make I no see wetin go make me borrow money for loan app. Abeg help me God

Run from these loan apps, they ruin lives.

They can make u do the unthinkable if u are not the strong type