More people than you might think are taking out online loans. With the country’s harsh economic realities, these loan apps offer quick loans with no collateral and minimal documentation.
However, many of the negative stories you may have heard about them are most likely true. Some of them frequently use less than civilized tactics to recover their loans, most loan apps charge exorbitant interest rates for a short period of time, and nearly all of them are not registered or regulated.
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Can a loan app block my BVN?
Number of Biometric Verification The BVN is a one-of-a-kind 11-digit number that identifies every Nigerian who interacts with the country’s financial infrastructure. The CBN assigns and controls the number in collaboration with licensed commercial banks.
So, can a loan app suspend your BVN for failing to repay your loan? The technical answer is no. Only the CBN has the authority to blacklist your BVN if you have seriously violated the country’s laws. Loan apps, on the other hand, can block your BVN and even prevent you from getting loans from other loan apps.
A loan app cannot ‘BLOCK’ your BVN; they can only prevent you from obtaining additional loans through their platform or from other loan apps.
What happens if I cant repay my online loans?
You will begin receiving calls and SMS from the loan company even before your due date. They will begin adding late fees to your balance after your due date. The loan company will then attempt to automatically debit the ATM card you have linked to your profile.
When all else fails, some Nigerian online loan apps are notorious for sending derogatory messages to the contacts of defaulters. Others, such as Branch, Carbon, and FairMoney, will forward your information to a loan recovery company, which will call you repeatedly until you repay the loan.
Can I go to Jail for not paying online loans?
No, you cannot go to jail for failing to repay your loan. The loan company wants their money, and you can’t repay it if you’re in jail. Although some loan sharks have been known to threaten their customers with legal action and jail time, they cannot imprison anyone.
Why do loan apps ask for BVN?
Your BVN is a unique identifier that is linked to every transaction you make in Nigeria. Because every Nigerian only has one, loan apps can more easily identify loan defaulters and deny them loans.
Are loan apps legal in Nigeria?
Some loan apps are legally registered and regulated as microfinance institutions by the CBN. However, the vast majority of online loan apps in Nigeria are illegal and unregistered. Check out this list of CBN-approved loan applications in Nigeria.
How do I block an online loan app?
You probably don’t want the loan app to take money out of your bank account without your permission. The only way to prevent this after binding your ATM card to your profile is to block and deactivate the ATM card. You can do this through your bank’s app or by going to your bank and requesting a new card.
Changing your card’s password will not prevent auto debit.
Can loan apps access my contacts even after uninstall?
Yes, they still have your contacts; when you first download the app, you grant them access to your contacts, and most loan apps immediately make a copy of your contacts.
You can still protect yourself from defamation by deleting your WhatsApp photo or restricting access to it to only your saved contacts by changing your privacy settings.
Most loan apps that defame people get their images from WhatsApp profiles.
Which loan app has the lowest interest rate in Nigeria?
The interest rates on Branch, Carbon, Kuda, and commercial bank apps are low. The interest rate on loan applications is not uniform; it is influenced by factors such as the borrower’s credit score and repayment history.
If you have any additional questions about loan apps in Nigeria, please leave them in the comments section below and return to this page for updates.
Despite the fact that I did not request a loan, funds were transferred to my bank account. How should I proceed?
Loan apps will sometimes deposit money into a customer’s bank account who did not request one, or a customer may fill out the form and later change their mind due to the high interest rate or short repayment term, but money will be deposited into their account.
What should I do if I accidentally paid more than I borrowed from a loan app?
Perhaps you were supposed to repay N12,000 but instead sent N120,000 to the loan app’s account. In this case, you should request another loan for the amount you overpaid. In this case, it is N108,000. In such cases, reimbursements are typically difficult to obtain, which is why you should exercise extreme caution and double-check before confirming any transaction.
I repaid my loan, but the loan app did not increase the amount of my loan?
It is common practice for most loan apps to increase the loan amount for their customers who repay on time, but they are not required to do so. There are a few examples.