In the past few years, the number of loan apps in Nigeria has grown. These apps make it easy for people and businesses to get loans quickly. But some of these loan apps have been found to be dishonest, which is why regulatory authorities have banned them.
Fake Loan Apps in Nigeria 2023
There is a lengthy list of fake loan applications in Nigeria, a problem that even the government has been unable to address as the number of fake loan companies grows daily in the absence of sufficient government involvement.
The amusing thing is that the public is frequently duped by these fake loan apps, and the number of fake loan apps in Nigeria is rising daily. Loan sharks is another name for these fraudulent applications. Both words mean the same thing. I’ll list the fake loan applications available in Nigeria in this piece, so be on the lookout for them to prevent giving your information to the wrong people.
In this article, we’ll talk about some loan apps that Nigeria has banned.
1. Okash
OKash is a loan app that was banned by the Central Bank of Nigeria (CBN) in November 2019 for doing things that were against the law, like charging very high interest rates and being rude to people who took out loans. The CBN also said that OKash was running without a license and against the rules for banks in the country.
2. LendMe
LendMe: LendMe is another loan app that was banned by the CBN in 2019 because it worked without a license and did things that weren’t honest. The CBN also said that LendMe charged high interest rates and made borrowers feel bad about their debt.
3. KwikCash
KwikCash is a loan app that was banned by the Central Bank of Nigeria (CBN) in 2018 because it was operating without a license and using unethical business practices. The CBN also said that KwikCash charged high interest rates on loans and made borrowers feel bad about their debt.
4. KashKash
KashKash is a loan app that was banned by the Central Bank of Nigeria (CBN) in 2019 because it was operating without a license and doing unethical things, like charging high interest rates on loans and bothering people who took them out.
5. OneFi
OneFi is a company that helps people get loans and other financial services. But the CBN stopped it from lending money in July 2019 because it didn’t follow the rules about how to lend money.
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6. Sokoloan
Sokoloan is a loan app that was banned by the Lagos State Government in August 2020 because it was operating without a license and doing things that were not ethical, like charging high interest rates on loans and bothering people who took them out.
In conclusion, the Central Bank of Nigeria (CBN) and other regulatory bodies in Nigeria have banned several loan apps for doing things like charging high interest rates, operating without a license, and bothering borrowers.
Before using any loan app to apply for a loan, it’s important to do your research and make sure that the app is legitimate and follows the rules.
How To Spot Fake Loan Apps In Nigeria
However, with this surge comes the risk of fraudulent loan apps that may scam unsuspecting borrowers. We’ll talk about some indicators of fake credit applications in Nigeria.
Do your homework on the loan app: Before downloading and using a loan app, make sure it is genuine by doing your homework on it. Verify the program’s ratings on Google, the app store, and other websites. Look for user evaluations, especially unfavorable ones that cast doubt on the legitimacy of the loan app.
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Verify registration and licensing: The Central Bank of Nigeria (CBN) oversees loan applications and mandates that they obtain licenses before they can lawfully conduct business there. Make sure a loan app has a license from the CBN or any other applicable regulatory agency before using it. You can examine the app’s website or get in touch with the regulatory body directly to do this.
Check the app’s contact information: Authentic contact information, such as a phone number, email address, and physical location, is typically provided by legitimate loan apps. Verify these facts to make sure they are accurate before using a loan app. To verify the information given, contact the app’s customer support staff by phone or email.
Watch out for credit applications with excessive interest rates: Loans with too-low-to-be-true interest rates are frequently offered in fake loan applications. Loan applications that promise loans with incredibly cheap interest rates or no interest at all should be avoided. Such offers are typically used as bait to entice unwary debtors into a scam.
Look out for hidden fees: Some phony loan applications frequently conceal fees from applicants until after they have accepted the loan. Read the terms and conditions thoroughly before using a lending app to look for any unforeseen fees. The credit application may be fraudulent if the terms and conditions are unclear.
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Don’t apply for loans if they demand upfront payments: Borrowers are not required to pay any upfront fees in order to use legitimate loan applications. It’s probably a scam if a credit application asks you to pay any upfront fees.
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