Before you download that loan application and apply for that loan, you should be aware that some loan apps have been banned by the Federal Government of Nigeria.
The National Data Protection Bureau (NDPB) conducted an investigation into the operations of online financial loan organisations in 2022 in collaboration with the Central Bank of Nigeria (CBN) and other governmental agencies.
Some of those businesses were found accountable for utilising specific applications to deceive poor Nigerians.
Identifying loan apps that are banned in Nigeria is not a difficult task. Fake loan apps are easy to spot as long as you’re looking out for the right signs.
If the loan app you are about to patronise is not hosted on either Google Play Store or Apple App store, there is a high probability that it is fraudulent. Although, this does not completely sideline the fact that fake loan apps also exist in the Google and Apple stores.
Another sign to look out for is the loan recovery method. Some loan apps tend to be unethical in the way they take back their loans. Ensure you read its review and there are reports of invasive or unethical methods of loan collection, do not venture into it.
Another red flag is that the loan app has hidden charges. Most of these fake loan apps in Nigeria offer credit with ridiculously low interest rates. After the loan is approved, representatives of the fake loan app demand payment of the money with illegal interest rates via text messages and phone calls. This quickly becomes a harassment operation against the borrower and his or her family.
A common way to spot a fake loan app is the absence of a physical address. Every credible financial platform has their office address posted on their website or app. A loan app that has no verifiable means of being contacted, including a phone number or an email is out to swindle you.
Below is the list of the affected loan apps banned in Nigeria:
GoCash Loan App
EasyCredit Loan App
Kashkash Loan App
Speedy Choice Loan App
EasyMoni Loan App
Sokoloan Loan App
Softpay Loan App
Maxi credit Loan App
Here4u Loan App
ChaCha Loan App
