In recent years, the financial technology (fintech) industry in Nigeria has experienced significant growth, revolutionizing the way individuals access loans and manage their finances. The rise of digital lending platforms has made it easier for Nigerians to secure quick loans for various purposes. However, amidst this convenience, there has been a surge in the number of fraudulent loan apps that prey on unsuspecting borrowers.
So long as certain information about you is required to give you a loan, even if it is an instant loan, your valid phone number or BVN might be required and as such, it is important to consider safety and deal with only a list of loan apps approved by CBN. That’s why we will expose the list of fake loan apps in Nigeria 2023 in this blog post.
When fake companies create loan apps, it often ends in user frustrations, scams, and fraudulent acts that also includes defamations as recently experienced by many Nigerian borrowers who default. You must have also heard about loan app harassment or even might have experienced one if you had borrowed from a not-trusted loan app.
Which loan apps are banned in Nigeria?
The following loan apps made it to the list of fake loan companies because of several users’ dissatisfaction and an increased amount of negative reviews on the App Store and Play Stores. The ones on this list are not the only ones, there are so many other names to avoid but if you’re able to stay away from the following apps, you will be happy you did.
- QuickCash Loan:
QuickCash Loan claims to offer instant loans without collateral and credit checks. However, many users have reported being scammed after providing personal information and paying “processing fees.” The app does not disburse any loans and leaves users in financial distress.
- Cash Panda:
Cash Panda presents itself as a reliable loan app with fast approval and low-interest rates. However, numerous borrowers have faced challenges in receiving their loans. The app often requests unnecessary payments for “administrative fees” or “insurance premiums,” draining users’ finances without providing the promised funds.
OKash is another fraudulent loan app that operates by charging exorbitant interest rates and hidden fees. Borrowers are lured by the promise of quick loans, but once trapped in their web, they face aggressive debt collection tactics and threats of legal action.
- KiaKia Loan:
KiaKia Loan falsely advertises itself as a trustworthy platform for instant loans. However, borrowers have experienced unauthorized deductions from their bank accounts, harassment from debt collectors, and even identity theft. It is crucial to steer clear of this app to protect your financial well-being.
LoanPalace claims to offer loans with flexible repayment terms and competitive interest rates. However, multiple users have reported that after submitting their loan applications and providing personal details, they receive no response. This lack of communication and failure to disburse loans is a clear warning sign of a fraudulent app.
SnapCredit operates under the guise of a legitimate loan app, but borrowers soon discover its fraudulent nature. The app charges high-interest rates and additional fees, leaving borrowers in a cycle of debt. Furthermore, users have reported that SnapCredit makes unauthorized withdrawals from their bank accounts.
CashGo entices users with the promise of instant loans and a hassle-free application process. However, borrowers have encountered difficulties in receiving their funds, and the app often demands upfront payments for “loan insurance” or “processing fees.” Such requests should be regarded as red flags.
- Cash Mall:
Cash Mall is a deceptive loan app that promises quick loans with minimal requirements. However, users have reported fraudulent practices, including unauthorized deductions from their bank accounts, hidden charges, and non-responsive customer support. Caution is advised when considering this app for loans.
LendCash presents itself as a legitimate lending platform offering fast and convenient loans. However, numerous borrowers have experienced delays in loan disbursement or have been asked to pay additional fees for processing. These practices raise concerns about the app’s credibility.
BorrowNow claims to provide instant loans with flexible repayment options. However, borrowers have faced challenges in accessing their funds, and the app often requests upfront payments for loan processing or insurance fees. These tactics are indicative of a fraudulent loan app.
LCredit deceives users with its promise of quick loans and easy approval. However, borrowers have reported exorbitant interest rates, hidden charges, and unauthorized access to their personal information. It is crucial to exercise caution and avoid sharing sensitive data with this app.
- Cash Wallet:
Cash Wallet entices users with its easy loan application process and quick loan approvals. However, borrowers have faced numerous issues, including delayed loan disbursement and unjustifiable deductions from their accounts. These practices indicate a fraudulent loan app that should be avoided.
GGMoney claims to offer fast loans without collateral or credit checks. Unfortunately, many users have fallen victim to this app, as it fails to disburse loans after collecting personal information and demanding payment for processing fees. Exercise caution when encountering GGMoney.
Sokoloan disguises itself as a trustworthy loan app, but borrowers have reported predatory lending practices, such as excessive interest rates and hidden charges. Additionally, the app has been known to employ aggressive debt collection methods, causing significant distress to borrowers.
Palmcash advertises itself as a reliable loan app that provides quick cash to borrowers. However, users have encountered difficulties in loan disbursement and have experienced unauthorized deductions from their bank accounts. Caution is advised when dealing with Palmcash.
- Ease Cash:
Ease Cash claims to be a reliable loan app offering instant loans for personal and business needs. However, borrowers have reported deceptive practices, including high interest rates, unexpected fees, and failure to provide the promised loan amounts. It is advisable to avoid Ease Cash.
ForNaira presents itself as a legitimate lending platform, but users have reported issues with loan approval and disbursement. Furthermore, the app has been associated with unauthorized withdrawals and poor customer support. These red flags indicate the presence of fraudulent activities.
GotCash entices users with its promise of quick and easy loans. However, borrowers have faced challenges in receiving their funds and have been subjected to continuous requests for additional payments. It is important to be cautious when dealing with GotCash.
GotoCash claims to provide instant loans with a straightforward application process. However, users have reported fraudulent activities, including excessive interest rates, unauthorized access to personal information, and non-transparent loan terms. It is advisable to steer clear of this app.
- Rapid Naira:
Rapid Naira claims to be a trusted loan app that offers fast loans with competitive interest rates. However, borrowers have reported delays in loan disbursement and unfair loan terms. Some users have even experienced unauthorized access to their bank accounts and fraudulent transactions.
AngelLoan presents itself as a reliable lending platform that provides quick and hassle-free loans. Unfortunately, borrowers have faced numerous issues, including hidden charges, inflated interest rates, and poor customer support. The app often fails to deliver on its promises, leaving borrowers in financial distress.
Stay vigilant and exercise caution when dealing with loan apps in Nigeria. Protect your personal and financial information by researching thoroughly, verifying credentials, and reading reviews before engaging with any lending platform. By staying informed and aware, you can avoid falling victim to the scams perpetrated by these fake loan apps.
How To Protect Yourself From Fake Loan Apps:
a. Research and Reviews: Before downloading and using any loan app, conduct thorough research. Check for user reviews, ratings, and comments about the app’s legitimacy and performance. Look for credible sources, such as trusted app stores or financial websites, to ensure accurate information.
b. Verify Credentials: Authentic loan apps usually display verifiable information such as their physical address, contact details, and company registration numbers. Verify these credentials to confirm the legitimacy of the app.
c. Read Terms and Conditions: Carefully go through the terms and conditions of the loan app. Be cautious of apps that ask for excessive permissions or demand unusual fees.
d. Protect Personal Information: Never disclose sensitive information like your bank account details, BVN (Bank Verification Number), or National Identification Number (NIN) to unreliable loan apps. Legitimate platforms only require essential information for loan processing.
e. Use Established Platforms: Stick to well-known loan apps that have a proven track record of providing genuine services. Consider apps recommended by friends, family, or reputable financial institutions.
How To Stop Loan Apps From Accessing Your Contact
Because many people have asked, “How do I stop loan apps from calling my contacts?” This section, solved the issue of loan apps accessing your contacts and defaming you. To prevent loan apps from accessing your contact information, you can follow these steps:
- App Permissions: When installing a loan app or any other application on your device, pay close attention to the permissions it requests. During the installation process or in the app settings, you will typically find a list of permissions the app requires. Deny or revoke access to your contacts if it is not essential for the app’s functionality. Be cautious about granting unnecessary permissions.
- Review App Settings: After installing a loan app, review its settings to ensure your contact information remains private. Look for options related to privacy, data sharing, or contact syncing. Disable any features that allow the app to access or sync your contacts.
- Manage App Permissions: On most smartphones, you can manage app permissions individually. Go to your device’s settings, locate the Apps or Applications section, and find the specific loan app you want to modify. Within the app’s settings, you should see a list of permissions it has been granted. Disable the permission to access contacts.
- Use Contact Blocking/Restriction Features: Some smartphones provide features that allow you to restrict or block access to certain information for specific apps. Check if your device has such functionality and utilize it to prevent loan apps from accessing your contacts.
- Regularly Review App Permissions: Periodically review the permissions granted to your installed apps. This practice helps you maintain control over your data and prevents unwanted access. Revoke permissions that are unnecessary or no longer required.
In a digital era where financial transactions are increasingly conducted through apps and online platforms, it is crucial to be aware of the presence of fake loan apps in Nigeria. Falling prey to these scams can have devastating financial consequences, leading to loss of money, identity theft, and harassment from debt collectors.
To protect yourself from fake loan apps, maintain a vigilant approach by conducting thorough research, verifying credentials, reading the terms and conditions, and protecting your personal information. Remember to rely on established and reputable platforms for your financial needs.
Financial technology has the potential to greatly improve access to credit and empower individuals in managing their finances. However, it is essential to exercise caution and ensure the safety of your personal and financial information when using loan apps or any other fintech services.
Stay informed, stay cautious, and stay safe in your financial endeavors. By being aware of the list of fake loan apps in Nigeria and following the recommended precautions, you can navigate the digital lending landscape with confidence and protect yourself from falling victim to scammers.
We hope that now we have exposed a list of fake loan companies in nigeria that you will avoid them like plague and stick to the ones that gives peace of mind.