There is a long list of fake loan apps in Nigeria and it’s something even the government has not been able to tackle with the list of fake loan companies in Nigeria increasing day by day without adequate government intervention.
The number of fake loan apps in Nigeria is increasing every day, and the funny thing is that the public is constantly falling prey to these fake loan apps. These fake apps are sometimes called loan sharks. Either word, they are still the same. In this article, I will show you the list of fake loan apps in Nigeria, and you better watch out for them to avoid giving out your data to the wrong hand.
Firstly, let’s see what a fake loan app is.
What is a Fake Loan App?
A fake loan app is a digital platform that is either an online or offline lender that offers credit loans at crazily high-interest rates and embarrasses you by sending defamatory and threatening messages to all members of your contact list when you don’t repay when due (it is usually seven days).
Earlier this year, I received a message notifying me to warn one of my contact lists, threatening that they would publish her name and details in the Newspaper and tag her as a fraudster. And I know that some of you have received such too.
It’s no longer news that even when the Federal government of Nigeria has tried to stop these so-called loan sharks, they keep resurfacing on the internet from time to time with different names.
Top 10 List Of Fake Loan Apps In Nigeria
Below is the list of loan apps banned in Nigeria in 2022 by the federal government through the ministry of the Federal Competition & Consumer Protection Commission (FCCPC). Avoid the following fake loan app list below that have been most notorious and dangerous in Nigeria.
FastMoney is one of the worse fake loan apps in Nigeria. The app is notorious for breaching the private data of its customers and sending threatening messages to them and members of their contact list.
The federal government of Nigeria had banned the operation of FastMoney, and Google had banned it, and the app can no longer be downloaded via the Google Play store. But look out because it might resurface with a different name.
LendCash is another most dubious fake loan app in Nigeria that Google has banned due to reports of serial violations of customers’ private detail and its policy rules. Currently, the federal government is tracing them for prosecution. Please avoid any form of a request to borrow a loan from LendCash and report any app from the same developer as it might just be a change of name.
3. Cash Mall
Cash Mall claims to be a genuine loan app in which customers can access anything from N2000 to N100,000 with a repayment duration of 91 to 365 days. However, this has claimed to be all lies.
Customers who have fallen victim to this fake loan app stated that the repayment duration is just seven days. If you default a day, your details will be exposed on their social media handles, and defamatory messages will be sent to your entire contact list.
Cash Mall also lied about its maximum Annual Percentage Rate (APR). They claim it is just 36%. However, it is higher than this. They have been banned by Google Playstore and may resurface in another name.
BorrowNow is a fake loan app in Nigeria known for its excessive-high interest rates and failure to comply with local laws.
BorrowNow loan has been banned from the Google Play store due to its violation of Google policies and unethical practice of sending threatening messages to its customers and their contact list.
NCash is the 5th on our list of fake loan apps in Nigeria. The unfortunate thing is that it is still hosted on Google Play Store when writing this article.
This loan demands that customers make deposits before their loans are approved and goes extreme in deducting upfront service charges directly from their debit cards. Their interest rate is as high as 100%, and a threatening message should be sent to your contact list if you don’t repay at the end of seven days.
Palmcash is a faceless loan app with no physical address; worst still, they don’t have a customer service personnel you can speak to. So technically, it is as even if you are dealing with a ghost loan app, making it one of the worst loan apps in Nigeria.
Sokoloan claims to give up to N300,000 within a repayment period of Google approved duration of 91 to 360 days, but this has been proved to be all lies. They are also known for sending threatening messages to your contact list, making them one of the fake loan apps in Nigeria.
8. Cash Wallet
Cash Wallet is one of Nigeria’s leading fake loan apps known for deducting a ‘down payment’ from your debit card. So it is not a loan app to do business with at all.
Cash Wallet would send your contacts defamatory messages even before the date of the loan tenure. It does this by sending these messages to your contacts with your picture via WhatsApp, SMS, and on Facebook. Run for your dear life anytime you are convinced to take a loan with them.
LCredit is another fake loan app that got banned by Google Play Store but still found its way back to the platform. It is characterized by high-interest rates and exposing customers’ private data. Lcredit got removed again by Google Play after finding its way back in and now, it offers its apps download via an APK file downloadable via its official website. Check out what happened to lcredit for more information.
10. Ease Cash
Ease Cash is a new fake loan app replacing the blacklisted notorious digital lending app, EasyMoni. It is fully hosted on the Google Play store. So, please beware of it. If you see their adverts anywhere on the internet asking you to take a loan from them, kindly refuse and use other options from trusted loan apps in Nigeria.
How to Spot Fake Loan Apps in Nigeria
Below are the top ways to spot fake loan apps in Nigeria. Ensure you checkmate any loan app for these factors before borrowing from them.
- They are constantly pressurizing you to collect loans promising you lower charges and long repayment duration.
- Sending threatening messages to your contact list and exposing your private data.
- Excessive high-interest rate
- Make unrealistic promises
- They deduct their interest before issuing the loan
- Constant online harassment of borrowers
- Use of unethical; loan recovery means
- Asking for a security deposit before loan processing and issuing
- Use of rude and derogatory statements by loan app staff on customers.
- Have a repayment duration of seven days instead of the minimum of 60 days, as stated by the law.
- Luring you to borrow loans against your will.
- Undisclosed charges and fee amounts.
- Lack of physical offices and reliable customer service system
- Operates unsecured website
- Sometimes they don’t have an official email address to which you can contact them, no contact telephone numbers, no social media handles, or newly opened social media handles.
List Of Fake Loan Companies In Nigeria
Below is a list of the top 10 fake loan companies in Nigeria you should avoid.
|S/N||Fake Loan App||Known For|
|1.||LendCash||Sending harassment messages|
|2.||FastMoney||Banned by Federal Government|
|3.||Cash Mall||Lies with outrageous Interest Rates|
|4.||NCash||Demands Deposits first|
|6.||Palmcash||No physical address|
|7.||Sokoloan||Defamatory messaging of contacts|
|8.||Cash Wallet||Asks for a down payment|
|9.||LCredit||Banned by Google play store and FG|
|10.||Ease Cash||Confirmed Fake Loan App|
Reasons Why You Should Avoid Fake Loan Apps in Nigeria
There are many reasons why you should avoid these loan sharks in Nigeria. If you hate embarrassment, then you need to take caution before choosing a lender. Below are reasons why you need to avoid loan sharks in Nigeria.
1. They destroy your image by sending defamatory messages to your contacts
2. They take advantage of the desperation of your situation and charge you high-interest rates
3. They violate any form of government laws and operate in a lawless order
Lend Cash and FastMoney are the worse loan apps in Nigeria. Don’t just borrow from any loan app because they promise you a lot of money with low interest. Ensure you do your research carefully. Check out for red signs, and when you see one, flee from it immediately. There are genuine loan apps in Nigeria. Until you calm down and analyze the loan apps, you won’t be able to identify them.