₦airaland Forum

Caaz:
Same thing i m suffering currently...i helped one uzeless abuja marriage couple with my gas cylinder to use because theirs was stolen,and they ve promised buying theirs a week after i lend them mine,i went to collect it back e don turn to war....they used it close to 2 months.
Dem say i suppose dash them....


It resulted to big fight i ve collected my cylinder,no be every body dem de help

That is exactly the same problem we face when it's time to repay a loan. Nigerians love to borrow but they don't like to pay back

Do not guarantee a loan for your wife if you do not have intention of assuming responsibility for it

correctguy101:
Oh...

You never heard of it before?

Most people do believe that.

And yes, it's totally nonsense.

I repeat again it complete nonsense!

For your information every bank that lends you money wants your business to do well so that you can pay back the loan without any issues which is a cheaper option for them.

If a customer defaults on his loan it will cost you more money and administrative time and effort to recover the asset he used as collateral before you can sell it.

The bank needs to go to court to file and application and this requires paying lawyers l, policemen etc.

No bank wants that burden or stress while doing business because it's a distraction for its staff and it brings bad publicity to the bank!

Chi111:
Hmmm, family member? Even my highly politician uncle will look you eyeball to eyeball and tell you NO

Your uncle is right for refusing because he knows family will take his kind heartedness for granted, they will borrow and refuse to pay back

correctguy101:
Exactly.

its like Mr OP does not know a thing about the real myths surrounding loans in Nigeria...

Myths like: Banks and lenders use juju so borrowers will be unable to repay loans...

This is complete nonsense!

MartinsD12:
You made a point bankruptcy, US is a country that understand life and welfare of her citizens unlike Nigeria, imagine what these loan sharks are doing to Nigerians because of the economic hardship, if I could remember vividly before 2015 there was nothing like loan apps, they can't try that their nonsense in developed countries they will pay for damages and infringement of people right

In a developed country you can't borrow and refuse to pay back.

If you do that you will destroy your credit score and as a result the credit card companies will charge you a higher interest rate; it will be difficult for you to get insurance and if you manage to get your premium will be higher than that of a person who has a good credit score; no agree for you to rent his apartment.

In a developed country if you take a loan from a loan company and refuse to pay back just know that you have made life harder for yourself.

Stop deceiving yourself with this talk about filing for bankruptcy

Rapmoney:
And you expect the borrower to pay the said money after defamation? Dey play.

No, we're doing business you are the one who is playing!

Pun intended!

jojo1415:
All these one week/two weeks repayment of loans should be stopped...Loan repayment should start from a month to 6months and enough time frame without harassment should be introduced,everybody knows as Nigeria is currently....most businesses r struggling to survive because of bad govt policies.

There are a lot of people in this country who will never repay a loan even if it's given to them interest-free and for 6 months

puremaker7:
And mind you, the person can't go to prison for borrowing and refuses to pay ....so you guys have to be reasonable with your interest in the first place

The interest is largely determined by the inflation rate in the country

puremaker7:
Do you know how much it takes to pay for damages if you get sued for defamation

A person who cannot repay a loan of 40K after several reminders has no basis to sue for defamation if the lender decides to publicly shame him to recover his money!

richiemcgold:
Both the lenders and the debtors are thieves. How do you want me to pay 40k for a loan of 16,500? Dey play

Did you not see the terms before you agreed to the loan?

puremaker7:
If somebody borrow money from you and refuse to pay, take him to court instead of harassment

Do you have any idea how much it costs to start legal proceedings in this country?


Starting legal proceeding because of a debt of less than a million is pointless except if you intentionally want to teach the person a very bitter lesson

WORWOR1963:
Sapa never worry u!!!! Dey form posh oooo!!! Abi u haven't heard of unforeseen occurrence abi?

How is that a valid excuse to crash another person's business?

They should also pass a law which makes it a criminal offence to borrow and not pay back

doctorherbal366:
Let me brief you guys a little.... I went to Gtbank to apply for #5million loan... it was as if I was sent to fight war in Iran and Iraq.... my brother the requirements I was told to bring even my worst enemy and my full hair egg balls won't be able to bring them..... I left them and rushed off to zenith bank.... ahhh I swear zenith bank was even more worst..... I went to first bank and they were just speaking English grammar for me..... I just felt really disappointed

Did you provide the requirements they asked for and they still denied you the loan?

This is what people want to know instead of these long story you are telling.

The bank is doing money with funds that were provided by investors therefore before the give out a loan they must take reasonable steps to be sure that they can recover the loan in the event of default by the customer

Stomoney:
Yoruba movie has entered your head

Who isn't progressing. If you need a job it's better you chat me up so I can employ you mumu

If you had the capacity to employ someone you would not have gone to the extent of stealing from 50 loan apps!

Tijani009:
Because this are unregulated loan sharks driving Nigerias into further poverty

Do not take loans from an online loan app if you do not have a source from which to repay the loan

Stomoney:
I dey own upto 50 of those loan apps. NYSC sweet that year

Laslas na on top food and amaka toto I spent the money

Truecaller is the key to less disturbance

So you think this is something to be proud of?

No wonder why you're not progressing

The attitude of Nigerians to loan repayment is very shameful!

If this is a civil matter why then is Peter Obi dragging the Lagos State government into the issue?

Kenways:
I registered with a loan apps Credit Moi and before I knew it I got an alert of 12500 to pay back 20k in 7 days. I didn't request for the money. I managed to payback yesterday and I instantly deleted their app. Just this morning I got another alert of 12500 and that 20k should be paid back in 7. Please how can I opt out of this problem? If I don't opt out they will keep doing this every week.

Merely deleting the app is not enough.

You need to download it again then navigate to where you can deactivate or close or shutdown your profile.

If you are unable to do this, find a way to delete your bank account details or change the figures there to zeros

microo:
Microfinance software is a specialized type of financial management system designed to assist microfinance institutions (MFIs), credit unions, cooperatives, and even small banks in managing and monitoring their unique financial services. These services primarily involve providing small loans (microloans), savings accounts, and other financial products to low-income individuals, entrepreneurs, and small businesses who typically lack access to traditional banking services.

Key Functions and How It Works:

Microfinance software automates and streamlines the entire microfinance lifecycle, from loan origination to repayment and reporting. Here's how it generally works and its key features:

Client Management and Onboarding:

Digital KYC: Facilitates digital Know Your Customer (KYC) processes, including identity verification (often with features like face matching, liveliness checks, and OCR for documents). This speeds up client onboarding and reduces manual errors.
Loan Profiles: Helps create and manage detailed loan profiles for borrowers, capturing their financial standing, payment history, and other relevant data.
Individual and Group Onboarding: Supports both individual loan applications and the management of Joint Liability Groups (JLGs) or Self-Help Groups (SHGs), which are common in microfinance.
Loan Origination and Management:

Application and Verification: Streamlines the loan application process, including application submission, verification, and approval. Some systems offer online loan application portals and built-in loan calculators.
Credit Scoring and Risk Assessment: Utilizes automated systems, algorithms, and sometimes AI to assess borrower creditworthiness, identify high-risk applications, and help make faster, more precise lending decisions. This can incorporate traditional and alternative data sources.
Loan Disbursement: Manages the efficient and secure disbursement of loan amounts.
Repayment Scheduling: Automatically generates and tracks repayment schedules, including interest calculations.
Loan Portfolio Management: Provides a comprehensive view of all active loans, their status, outstanding balances, and performance. This includes tracking deposits, withdrawals, and interest charges.
Collections and Delinquency Management:

Automated Reminders: Sends timely SMS alerts and emails to borrowers to remind them of upcoming payments and reduce default rates.
Overdue Payment Tracking: Identifies overdue payments and helps estimate risk levels.
Collection Management: Supports both cash-based and digital collection methods, including integrations with payment gateways and BBPS (Bharat Bill Payment System) in some regions. It can also manage promise-to-pay and follow-up processes.
Savings and Deposit Management:

Customer Savings Accounts: Safely tracks deposits, withdrawals, and interest calculations for customer savings accounts.
Deposit Schemes: Supports various deposit schemes, such as recurring deposits and fixed deposits.
Accounting and Financial Reporting:

Automated Bookkeeping: Automates financial transactions and bookkeeping, simplifying ledger creation.
Financial Statements: Generates accounting statements and records for internal analysis and compliance with government and financial bodies.
Analytics and Dashboards: Provides insightful reports and analytics, including profit and loss statements, branch performance KPIs, portfolio performance (arrears, aging reports), and social performance metrics (number of active clients, impact by demographic). This helps MFIs make informed decisions.
Integration and Security:

Mobile App Integration: Many modern [URL=https://www.geniustechnoindia.com/microfinance-software] microfinance software[/URL] solutions integrate with mobile apps, allowing field officers to conduct operations (onboarding, collections) remotely and enabling clients to manage their loans and savings from their phones.
Cloud-Based: Often cloud-based, offering remote accessibility, scalability, and secure data storage with end-to-end encryption and backup/recovery features.
API-Driven: Designed with APIs to facilitate seamless integration with third-party systems like credit bureaus, payment gateways, and government databases for KYC.
Benefits of Microfinance Software:

Increased Operational Efficiency: Automates manual tasks, reducing processing times for loan approvals and data entry, leading to higher staff productivity.
Reduced Errors and Fraud: Minimizes human error and can detect inconsistencies in documentation, helping prevent fraudulent activities.
Improved Risk Management: Provides objective credit assessments, real-time performance insights, and predictive modeling to mitigate risks and reduce default rates.
Enhanced Financial Inclusion: By streamlining processes and reducing costs, it enables MFIs to reach more underserved populations and empower them with financial services.
Better Decision-Making: Offers comprehensive reporting and analytics, allowing institutions to gain insights into their operations and make data-driven decisions.
Cost Reduction: Lowers operational costs by optimizing processes and reducing the need for extensive manual labor.
Greater Transparency and Compliance: Ensures better transparency in financial transactions and helps institutions comply with regulatory requirements.

How long has this loan management system been in the market?

psucc:
Na paper work. The truth is that
1. Not all the banks give loans.
2. If the collateral for the loan is your salary, they simply give you such amount that ⅓ of your salary is deducted to cover the loan repayment and interest.
This, the money may not be enough to take care of some business.
3. Of course, the credit score is considered.
4. The interest rate charges is alarming and I will advise whoever to stay off. It's killing at the end of the day. Except you are using it for a business that will be able to repay itself within the timeframe.
Currently, the interest rate is pegged at 39.95%, so you must have a business that can return at least 50%.

5. Most banks do not even rate Civil Servants when it comes to loan matters. They're only considered to stand sureties for others. If you doubt me, just make a little more enquiry.

All commercial banks give loans because loans interest is a major source or revenue for them.

Also as a commercial bank if you do not give loans then you will not be able to pay interest of fixed deposit which in turn will negatively affect the bank's deposit drive

Nna2025:
Dear Nairalanders,

My company asked a couple of us to resign, services no longer required. I was paid a little above 10M and I will be venturing into lending. Microlending. Please say your prayers for me and wish me well. I will appreciate all you prayers and encouragement too...

Thank You and Regards,

I hope my advise is not coming too late so that you don't make serious mistakes.

Start business with 2 million while you put the balance in a fixed deposit.

The reason for this is to secure the money for the time being while you learn the ropes of the biz. If you use the entire money to start the biz it is very likely you will loose most of it because you will be in a hurry to make money that you will start giving loans to poor quality clients who will never pay back.

At this stage do not make the mistake of giving a loan of 500K to a single individual unless he presents a solid collateral that is worth at least two times the value of the loan; you must physically take possession of the collateral before you release the money!

You MUST always do a thorough due diligence before you release any money.

Once anyone who is seeking a loan starts putting undue pressure on you to release money to him just back out of that loan; the reason why they do that is to confuse you so that you will not see the red flags in the deal

Feel free to ask any questions you might have

Coder2Client:
Ah. You took a huge loan oo.

He has not yet accepted the loan offer

binary123:
The loan app make it mandatory to pay back in installments
The loan & the interest is spread within 12month you are not even given 2-3months before the payment commence
You start a compustry payment at the end of the first month

If the structure of the loan is such that requires you to make a monthly repayment starting from the month of disbursement then that loan is not suitable for your business and I will not advise you to take it because you will find it hard to cope.

The type of loan your business needs is the type that will give you a grace period or moratorium so that you can adequately maximise usage of the funds.

Unfortunately this type of loan or overdraft can only be got from a bank or MFB and you will likely need to present a collateral or pledge the personal guarantee of the owners of the business if they are high net worth individuals before you can get it.

An alternative would be for you to seek funds from angel investors or family members

samwash:
That is where pple are getting it wrong, if you are telling me that they wouldn't give him up to 500k at first Chance,I might reason with you, if he already has an existing business that is worth double of 500k in stock and have a very good cash flow, they will consider him. It is not necessary that he has to build credit finance with them for six months.
He can apply today, if he meet their requirements, they fund him tomorrow.
He just have to start from somewhere.

You can't just give a loan of a high amount to a new client without first confirming that he actually has capacity to repay the loan he is asking for.

If you start dishing out loans indiscriminately to new clients trust me your bank will fold up within a short time.

Some of those you think are new clients are actually scammers and they are ready to go and rent stock of say 10 million and invite your bank to come and inspect it in their office so that they can get a loan from you, immediately after you disburse the loan they will disappear with the money and you will have to bear the loss.

In the same vein some may actually be genuine businesses but if you make the mistake of giving them a loan that is above their current capacity they will divert the funds to unproductive ventures such as hosting parties or marrying a new wife or other personal consumption which will make it impossible for them to repay the loan when it becomes due.

These are things that cannot be hidden in a bank statement, once an experienced person examines the bank statement he will be able to tell whether or not there is business activity going on and the scope or size of the transactions.

It is this information that the bank will use to determine whether or not there is merit in the loan request by the business owner

samwash:
The internet is too much,you are paying back double of the initial principal of the loan.
Why not go for MFB loan, those ones are cheaper compare to this one.

Before a MFB will even consider giving him a loan he has to operate a bank account with them for at least 6 months so they can monitor his monthly turnover to be sure he has the cashlow to repay the loan he is seeking.

You can't just walk into a MFB out of the blues and request a loan then think they will give it to you, it does not work that way!

lordm:
I guess everyone's family is not the same. I borrowed from my sister and I paid her back

I did not ask if you borrowed from a family member and paid the person back, what I asked is if you lent to them and they paid you back. They are two very different things!

CodeTemplarr:
Rate too high. Why not try commercial banks with 24%-60% PA ?

No commercial bank in Nigeria will even waste time processing a loan of just 500K.

Most of the commercial banks that even developed loan products for clients who needed Payday loans and other loans of smaller amounts have even stopped because they realised the default rate for that segment is so high therefore it is not so profitable for them to give such loans.

If you're not taking a loan of at least 50million which will be fully secured with a collateral I doubt if any commercial bank in Nigeria will take you serious

binary123:
Thanks, but is not easy to access loan anywhere,

This is actually because Nigerians have a culture of not wanting to repay loans