There has been an increasing number of fake loan apps in Nigeria. Many Nigerians have been deceived into taking loans from these apps and later get harassed and blackmailed in different ways, which are traumatizing and inhuman.
The annoying thing here is that many Nigerians keep falling prey to these loan apps daily because they can’t identify them or their mode of operation. As such, this article explains what fake loan apps are, the list of fake loan apps in Nigeria, the ways to identify them, the dangers of patronizing these fake loan apps, and the ways to identify safe loan apps.
What is a Fake Loan App?
A fake loan app, also known as a loan shark, is a digital platform( either online or offline lender) that offers loans at high interest rates and usually has a repayment duration of (7 to 30 days), which after failure to pay by the end of the seventh day, access you contacts and send defamatory and threatening messages to them all.
Late last year, I received a WhatsApp message notifying me to warn a friend on my contact list, threatening that they would publish her picture, name, and details in the Newspaper and tag her as a fraudster if she refused to pay. Earlier this year, I got another message from a different loan app stating that my friend is HIV positive and is a dangerous person and that I should stay away from him. It was shocking, so I called my friend and asked him what was going on, he said that he owned them, and that’s why they threatened to defame and embarrass him if he did not pay within the repayment duration.
The defamatory messages from these loan apps can be annoying, and I know some of you have received them, too.
Ways To Identify Fake Loan Apps in Nigeria
Below are the top ways to identify fake loan apps in Nigeria. Before borrowing from any loan app, evaluate them using the points listed below.
They constantly pressurize you to collect loans, promising lower charges and a longer repayment duration.
- Excessive high-interest rate
- Make unrealistic promises. For instance, promising to offer a certain amount of money within minutes for a longer repayment duration.
- Asking for a security deposit before the loan will be processed and issued.
- Use luring tactics to convince you to borrow loans against your will.
- No physical offices and reliable customer service system. Never borrow from a loan app that does not have a physical office.
- Lack of an official email address, no contact phone numbers, no social media handles, or newly opened social media handles.
- They are not licensed by CBN. Only borrow from CBN-licensed lenders.
- Undisclosed and hidden charges and fee amounts.
- Sending threatening and defamatory messages to your contact list
- Breaching of your private data.
- They deduct their interest before issuing the loan
- Constant online harassment of borrowers
- Operates an unsecured website
- Use of unethical loan recovery means
- Use of derogatory statements by loan app staff on customers.
- Have a repayment duration of seven days, fifteen, or thirty days instead of a minimum of 60 days, as stated by the law.
Top 10 Fake Loan Apps In Nigeria (List Of Loan Apps Banned In Nigeria)
Below is the list of the top 10 loan apps banned by the Ministry of the Federal Competition & Consumer Protection Commission (FCCPC) due to their unethical practices.
1. FastMoney
FastMoney is one of the worst fake loan apps in Nigeria. It promises to be the fastest lender to lend you money immediately when needed, but it has never kept its promises. The app is known for its notorious habit of illegally breaching its customers’ private data and sending threatening messages to them and their contact lists.
It has caused a lot of havoc to Nigerians, and due to the persistent bad reviews and complaints, Google has forbidden it, and you can no longer download it on the Google Play Store. Also, the Federal Government of Nigeria had banned its operations. So, there is a tendency for it to resurface with a different name, so you have to be very careful.
2. LendCash
LendCash is a dubious digital loan lender in Nigeria that has been severely reported for violating its policy rules and illegally accessing customers’ private details. They have caused havoc in the lives of a lot of Nigerians.
Not too long ago, Quick Loan Arena also reported the activities of LendCash, and now the Federal Government of Nigeria is currently on the search for them for prosecution. Please avoid any advertising or luring messages about borrowing money from them.
3. Cash Mall
Cash Mall is another fake loan app many Nigerians have fallen victim to. This app claims to be genuine and gives access to loans from N2000 to N100,000 with 91 to 365 days of repayment. However, this has been proven to be a lie as it only has a repayment duration of seven days.
The annoying thing about this app is that if you default in repaying the loan even for a day, your details will be exposed on their social media handles, and many defamatory messages will be sent to you and your entire contact list. This can be so embarrassing!
4. BorrowNow
BorrowNow has been banned from the Google Play Store due to its unethical practices of sending defamatory and threatening messages to its customers and their customers list when they default on repaying the loan within the due duration.
Its interest rates are excessively high and do not comply with the loan policy, and thus can be categorized as a fake loan app that you should flee from.
5. NCash
When borrowing from NCash, you will be required to deposit before the loans are approved. Worst still, it deducts upfront service charges directly from your debit cards. Their interest rate is almost 100%, and they only give you seven days to repay the loan together with the interest.
Failure to repay at the end of the seven days makes you their victim, as threatening messages will be sent to you and your entire contact list on WhatsApp and SMS. Unfortunately, this fake loan app was still hosted on the Google Play Store when this article was written.
6. Palmcash
Palmcash does not have a physical address and no customer service personnel you can contact; this makes it one of the worst loan apps in Nigeria. It is practically faceless, as nobody knows who is behind the app. Dealing with it is like interacting with a ghost app. Please stay off it.
7. Sokoloan
Sokoloan is one of the fake loan apps in Nigeria that have been banned from the Google Play Store for not keeping to the Google loan policy. They claim to give up to N300,000 for a loan term of 91 to 360 days, a Google-approved repayment duration, but this has been proven to be all lies. Also, they send threatening messages to your contact list when you fail to repay at the end of the seventh day.
8. Cash Wallet
Cash Wallet is a loan app you should not do business with or interact with. They are known for deducting a ‘down payment’ from your debit card and choking you with crazily high interest rates.
The worst thing about this app is that it sends defamatory messages with your picture to your contact list across SMS, Facebook, and WhatsApp. Sometimes, they send defamatory messages even before the repayment duration elapses. This makes them even more dangerous.
9. LCredit
LCredit is another dangerous fake loan in Nigeria that is characterized by breaching customers’ private data and offering loans at high interest. The Google Play Store banned it, but it still found its way back to the platform and has been removed again. It is accessed via its official website, which directs you to download the app via an APK file downloadable.
If you want more information on what happened to LCredit, click here, and you will get the full gist.
10. Ease Cash
Ease Cash is a fake loan app that is developed to replace the notorious blacklisted digital lending app, EasyMoni. It is relatively new and still on the Google Play store. Please stay off it when you see it.
Dangers of Patronizing These Fake Loan Apps
- There are a lot of dangers of patronizing these fake loan apps. Do not even have their apps downloaded on your mobile phones or laptops. Here are some of them:
- Their interest rates are crazily high, and you pay as much as twice what you borrow.
- The defamatory and threatening messages sent to your contact list destroy your image and reputation built over the years.
- They have no physical branch, so you cannot arrest them for defamation or violation of your data.
Ways to Identify Safe and Reputable Loan Apps in Nigeria
Haven known the ways of identifying fake loan apps in Nigeria and their list, it is essential you know how to identify a safe one. Here are the ways to identify safe loan apps in Nigeria that you can interact with:
- The Central Bank of Nigeria licenses them, and all their regulations are guided by the Credit Bureau Limited (CRC) and the Nigerian government.
- Their interest rates are within the standard range. They are not outrageous.
- They have a repayment duration of a minimum of 60 days
- They never ask for a down payment and no hidden fees.
- They have a physical address(s), a website, and existing social media handles. They have a functional customer service personnel you can speak to.
- They never breach your data or send threatening messages to you or your contact list.
In Conclusion
These are not the only list of fake loan apps in Nigeria, as more are still being developed each day. So, the basis is to carefully evaluate each loan app before interacting with and borrowing from them. Never rush to borrow from an app because it is advertised as genuine and easy to borrow money from. Calm down and analyze them. Trust me, you will not want to be embarrassed by these apps; they are usually not funny.
To access reputable loan apps in Nigeria that are trusted, licensed by CBN, and well-regulated, click on this link.
