Top Facts About Nigerian loan apps you should know, Online loans are being taken out by more people than you probably thought. With the country’s economy being as bad as it is, these loan apps offer quick loans without collateral and with little paperwork.
But a lot of the bad things you may have heard about them are probably true as well. Some of them use less-than-civilized ways to get their loans back. Most loan apps charge ridiculously high interest rates for a short amount of time, and almost none of them are registered or regulated.
Here are answers to some questions you might have about loan applications in Nigeria.
Can a loan app block my BVN?
Number for Biometric Verification BVN is an 11-digit number that is unique to each Nigerian and lets the country’s financial system know who they are. The CBN and licensed commercial banks work together to give out and manage the number.
So, if you don’t pay back a loan, can a loan app block your BVN? In a strict sense, the answer is no. Only the CBN can put your BVN on a list of people who have broken the country’s laws very badly. Loan apps, on the other hand, can block your BVN on their app and even make it impossible for you to get loans from other loan apps.
A loan app can’t “BLOCK” your BVN, but they can stop you from borrowing more money from them or from other loan apps.
What happens if I cant repay my online loans?
Even before your due date, the loan company will keep calling and texting you. After the due date, late fees will be added to your balance. Then, the loan company will try to automatically take money from the ATM card you added to your profile.
When all of these don’t work, some Nigerian online loan apps are known for sending insulting messages to the contacts of people who don’t pay back their loans. Others, like Branch, Carbon, and FairMoney, will give your information to a company that will keep calling you until you pay back the loan.
Can I go to Jail for not paying online loans?
No, you can’t go to jail if you don’t pay back your loan. The loan company wants their money back, which you can’t do if you’re in jail. Even though some loan sharks have been known to threaten their customers with lawyers and jail time, they cannot put anyone in jail.
Why do loan apps ask for BVN?
Your BVN is a unique number that is connected to everything you do in Nigeria. Because every Nigerian only has one, it’s easier for loan apps to find people who don’t pay back their loans and turn them down for loans.
Are loan apps legal in Nigeria?
Some loan apps are recognized by the law as microfinance institutions and are regulated by the CBN. But most online loan apps in Nigeria are illegal and haven’t been registered. Check out this list of Nigerian loan applications that have been approved by the CBN.
How do I block an online loan app?
You might not want the loan app to take money out of your bank account without your permission. Once your ATM card is linked to your profile, the only way to stop this from happening is to block and deactivate the card. You can do this by using the app for your bank or by going to your bank to block your card and ask for a new one.
Changing the password on your card does not stop automatic withdrawals.
Can loan apps access my contacts even after uninstall?
Yes, they still have your contacts. When you first get the app, you give them access to your contacts, and most apps make a copy of your contacts right away.
You can still avoid slander if you delete your WhatsApp picture or change your privacy settings so that only your saved contacts can see it.
Most loan apps that lie about people get their pictures from their WhatsApp profiles.
Which loan app has the lowest interest rate in Nigeria?
The interest rates on the Branch, Carbon, Kuda, and commercial bank apps are low. The interest rate on loan applications is not the same for everyone. It depends on things like a person’s credit score and how well they have paid back loans in the past.
If you have more questions about loan applications in Nigeria, leave them in the comments section below and come back to this page to see if there are any new answers.
I did not request a loan, yet money was disbursed to my bank account. what do I need to do?
Sometimes loan apps send money to a customer’s bank account even though they didn’t ask for it. This can happen if a customer fills out the form but then changes their mind because the interest rate is too high or the repayment period is too short, but the money will still be sent to their accounts.
If this happens to you, put the amount that was sent to your bank account back right away so that you don’t have to pay interest on it later.
I mistakenly overpaid more than I borrowed from a loan app, what should I do?
Maybe you were supposed to pay back N12,000, but you sent N120,000 instead. In this case, you should ask for another loan for the amount you already paid back. In this case, that is N108,000. Most of the time, it’s hard to get money back in these situations, so you should be very careful and check everything twice before confirming a transaction.