₦airaland Forum

ceejayluv:
Deal with them, I beg you....

Be ready to contribute money for lawyer fees

FCCPC should also tell them to pay back their loans!

Nigeriahasfutur:
Omo that one small. Fairmoney can give up to 5 million if you request and have good credit score. The problem is that I didn't want to take what I know I could definitely not pay.

The plenty ones I am owing is enough. This offer was before I defaulted in one payment. Fairmoney has this top-up offer stuff, where you can borrow money on-top the loan you already have with them.

A lot of the people actually manipulate the system in order to get a high credit rating so as to get more loans.

What some of them do is to borrow from loan one loan company then after sometime they borrow from another loan company and use the money to repay the first loan before due date.

Doing this repeatedly gives the false impression that you are credit worth thereby boosting your credit rating.

When eventually they are able to get a higher amount of loan they start defaulting because don't actually have capacity to service such an amount

Administration1:
With the scenario above, you don't need to domicile your salary account with the bank.

Please mention the name of just 1 commercial bank in Nigeria that will give an unsecured loan of N1 million to a walk-in customer who does not maintain an account with them

SilentEmma:
they play, the money they make in gains is 100 times more than what they are losing...

at a time me self come dey pity them when i no fit pay, i was like wont their business collapse, but little did i know that, i was crying for multiple billionaires, ayway... they still give out millions to people every damn day...

no be everyone wey dey owe fit gadge mind like i get to blank them... who no fit handle pressure na im dey go borrow from one loan app to pay another...

how i wish i could turn bak the hands of time

Since you believe they make so much profit I suggest you set up a loan company so that you will understand the challenges of running the business

Administration1:
Truth remains, it is readily available at the tip of your hands, however, those big names you mentioned there can give you loans without collateral, even with phone the likes of Wema, SC, etc can give you 1/3 the value of your phone as a loan.

Before a commercial bank can give such a loan the person must be a salary earner and his salary account must be domiciled with their bank

Octopusssy:
That level

Forget about them believing in you. They will disturb you until you have a nervous breakdown. Just take your time to hustle the money in peace and without pressure because they will not allow you drink water and keep cup.

A friend of mine told me she now has peace ever since she set her phone in the way I described. She is owing Fairmoney 1.1m and has been trying to pay back to no avail.

It is these types of people that will be complaining all over the place that loan apps don't give loans of reasonable amount yet when you give them loans of large amount they default.

I wonder how Fair money could have been so careless as to give an unsecured loan of 1.1million

Nigeriahasfutur:
Oga, why una apps no dey ever agree to loan restructuring. I have been asking for restructuring but to no avail. I want to pay, but I need the loans to be restructured so I can have time to pay.

When you guys see good customers like me who is asking for restructuring, make una accept. If you work with any of the apps I owe, tell them that they should be more amenable to restructuring, so there can be less defaults.

That's because most times when you do a restructuring of a loan that is not secured with any collateral in the long run the borrowers take it a licence not to repay the loan

Nigeriahasfutur:
Maybe they settled some people silently.

So because they're asking for their money you have started making allegations of bribery against them.

When you were looking for the loan you saw First Bank, UBA, Zenith Bank, Access Banks, GT Bank and the other commercial banks, why did you not provide collateral so they will give you the loan?!

DaddyCoool:
Nah.. I can actually easily be a loan shark considering the ridiculously small amounts they lend. And that's why they do it - even if you don't pay the amount is too small to affect them

Since you know it's so easy what are you waiting for?

Open your own loan company let us see how long you can keep it running

davies:
The loan app or credit facilitators are dumb to do this cos will this pay the loan.
I personally defaulted palmpay flexi cos those guys are stupid set of c
People. You call people and humiliate them and expect them to pay you,yet you keep increasing the same money that hasn't been paid.
Government need to step into this loan sharks matter cos even the normal conventional bank wont do this shit.

Next time you need to borrow 20K urgently go to a conventional bank let's see if they will lend it to you!

Konquest:
First off, these app loan defaulters have BVNs, so, that can be used to track any inflow of cash into their other banks, so, as to ensure they pay the loans back.

Second, more importantly, this loan apps business model is NOT sustainable to me because they charge extremely high interest rates on short-term loans (without collaterals) and knowing full well that some Nigerians are notorious for not paying back (credible statistics show that female small business entrepreneurs generally pay back loans on time more than men).

Third, a better business model to adopt for these loan apps owners can be to adopt the non-interest or Islamic banking type of investment where a person who wants a loan can apply through an app, you fund the business and you share the profits. You don't have to call it Islamic banking just simply non-interest loan apps that involve profit sharing. For smaller loan requirements, ONLY give out funds to those who are existing salary earners. I'm a man who believes in sharing disruptive innovative ideas and solutions from time to time.

If the current loan app method continues with these high interest rates, many people will certainly default and the loan app business will collapse!

Last but not least, the Federal Competition & Consumer Protection Commission (FCCPC) had warned loan apps against harassing borrowers since 2023:

Actions against non-compliant operators.

The FCCPC will take action against operators that don't comply with regulations, including:
1] Blocking their apps from the Google and Apple stores.

2] Blocking their accounts through the CBN

3] Taking law enforcement action

What your talking is theory, they don't work in real life.

You can't just apply global debit order on all the bank accounts of a debtor without a court order.

So let's assume the person owes your company 40K and has refused to pay, the process for using a global debit order is time consuming and it is costly because you need to pay lawyers and court fees before you can get it.

In the end you might end up incurring total expenses of at least 250K just because you want to recover a bad debt of 40K! It makes no economic sense

Konquest:
This is invasive and unethical. There should be better ways to "take down" these loan defaulters and ensure they are held accountable.

Please suggest just one better means to take down loan defaulters after you have tried all your possible best

DeltaBachelor:
They should be sued !

Before the loan company took this action just know that they have tried all their possible best to recover the loans through normal means

Nnamdipapa:
If friends borrow these same people with no interest, they wont pay back.

Exactly!

kingphilip:
As someone said above, if they were legit, they would have gone through legal means to retrieve their money but because they're not, they can only use blackmail to do so.

People should as much as possible live within their means to avoid such embarrassment because the people they want to impress with their extravagant lifestyle don't care but will even mock them when the loansharks post their pictures all over the place.

Do you think the cost of legal action is cheap?

Recovering loan is just like recovering tax by the government, the recovery expenses to be incurred must be less that the amount of bad loan you want to recover.

No loan company will incur a legal expense of 400K lawyers fees in order to recover a bad or delinquent loan of 50K

danvon:
The damage is done, they have played their trump card.

After publicly disgracing them what else can they do?

If they were a legal loan company they could have easily notified the authorities.

Notify the legal authorities so that they will do what?

Will they go and recover the loans for you?

laivwire:
Anything loan with repayments different from simple interest rates is a con.

This is not true.

The interest rate charged on a loan is basically a reflection of the risks involved in such a loan.

Guiness Nigeria Plc has been in business for over 40 years, they have a stable management structure, guaranteed cash flow and fixed assets therefore they can approach a bank for a loan of N100 million and get it at an annual interstate rate of about 28% because the risk of default is relatively low.

On the other hand no bank will ever agree to give a loan on similar terms to a new business because there is a high probability that the new business may collapse and the bank will loose it's money, the only option is to seek such loan from other non-bank financial companies and they will charge a higher rate of interest because of the high risk element.

You cannot therefore say the company charging a high interest rate is doing something wrong, the high interest rate they are charging is their cost in order to agree to take on the risk of giving a loan that has a higher probability of going bad

LordBiden:
Shut ur modafvcking mouth there.

The question I asked is does ones location really matter.

How is that a stupid question.

You made it seem as if requesting information on location of potential borrowers was not necessary.

Why would you expect a person to grant a loan to a complete stranger without first requesting for location so as to evaluate the potential costs of loan recovery in the event of default or abscondment?

Learn to use your brain so that you will not be making foolish comments in public!

Versitee:
What are you even saying.
This is wrong

You asked for a loan quotation and the company gave you one.

Since you are not happy with the interest rate the company is charging it is best for you to approach another loan company or better yet you go to a commercial bank and take the loan from them but be sure that you must provide collateral before a commercial bank will give you a loan.

The reason my online loan companies charge high interest rate is because Nigeria is experiencing a high rate of inflation therefore they also have to pay a high interest rate to investors who provided the money they are lending out; apart from this giving out loans without collateral security is a very high risk venture in a country like Nigeria.

Please stop disparaging our company online, we are also facing serious challenges in running our business besides we are not forcing you to take the loan!

PapaNnamdi:
Are you not a thief?

You already used your own mouth to confess to being a thief because only a thief would borrow without the intention of paying back the loan!

Soneh:
That's annually. The interest shouldn't be upto 100k if they were to follow cbn rates

There is nothing bad if you set up a loan company that gives highly risky uncollateralissed loans then charge borrowers interest based on CBN's rate for collateralised loans.

Try it and let us see if your company will survive for 6 months

Rexymania:
Collect am, use am invest, throw away that sim and change your bank. Bye to loan apps

No business that was funded with stolen funds will ever grow!

PapaNnamdi:
Take am,

Dem be thief what's fair about that interest rate,
Dem never see anything,

If I see 1million loan, and the pay back dey ridiculous I go take the loan, when we don drag payment taya I pay Dem back 1.2million,

We try as much as possible to avoid giving loans to thieves

Versitee:
Why wont Nigerians default on loan apps.

Just imagine, fairmoney wants to give me 400k to pay back 900k in 9 months.

Do they seriously think I will pay back that money?

I just need cash to support my business.

I was expecting 400k to be around 600k in 6 months

The loan offer was made based on current economic realities.

If it's not good enough for you please reject it and seek a loan from another company

LordBiden:
Second question,does location really matter.

Some of you people like asking stupid questions!

Can you as a person give a loan to a person you don't know from Adam without first asking for his location?

There is no loan company anywhere in the world that would give you a loan without first asking for your location!

damiultimate:
Are you or your company willing to offer the loan if all is in Good standing? How do I contact you?

Instead of you to provide a clear answer to the question you're replying the question with another question!

kellybently:
Palm credit is a very stupid company to do business with. Others are great .

What did we do to you?

EduBrazil1991:
Please,

I have tried to get a loan from Wema Bank but I don't know how to go about it.

What I need the loan for is to get a Keke truck for easy transportation of my farm produce to the local markets.

I'm into cassava, maize, tomato and coco yam.

Location is Ondo state, Owo to be price.

A Keke truck goes for 2.7m to #3m. I will start repaying a month later.

Do you have an account in Wema Bank in the name of your business?

How much is your average monthly account turnover?

Blazetrailer:
Wrong!!!
So long as he has made a down payment snd paid some contributionss towards his loan, it is jointly owned. Read the Mortgage and Finance act. If house is foreclosed and sold beyond the outstanding mortgage loan, he will be given his share. Read up before misleading people.

You are the one who is misleading people!

There is no such thing as joint ownership of property by the morgagor and mortgagee.

The property does not become yours as a mortgage until you make the last morgate payment by which you will be deemed to have fulfilled the requirements.

If you still claim that the property is jointly owned then why is it that the property documents and all title documents are in the possession of the bank?

SecurityRiskGuy:
In Nigeria, even with property as collateral, accessing bank loans for a tech startup can be tough if you don’t have consistent cash flow. Banks often want more than collateral. They look for proven cash flow, which many early-stage startups lack.

Have you or anyone you know successfully used a bank loan to fund a startup? How did you navigate the cash flow requirement? If not, what other funding options like grants, accelerators, or alternative lending platforms might work for someone in this situation?

Let’s discuss real-world experiences and practical advice to help aspiring founders access the funds they need!

Business failure rate for tech start up companies is very high, not only in Nigeria but globally this is why banks are often hesitant to give loans to them