Formoney Loan is an instant online app that gives loan applicant access to over 100k to solve personal and business issues.
Formoney loan application is an Nigerian smartphone-based lending service that gives a quick and easy personal loans with credit limits as high as N100,000 secured. Unsecured loans are one type of loan that doesn’t require collateral or down payment in order to get. It’s typically short-term with very high interest rates.
Formoney allows you to get a personal loan easy by using your phone, including your personal information to confirm your identity as well as create credit scores.
Don’t take the Formoney loan to finance your lifestyle or to pay off long-term debts. These loans can be useful in times of need, but they are very expensive when compared with long-term loans, and must be handled with caution.
Within the first 2 months it has already gained more than 10k downloads on the Google play store , with mixed reviews. The app uses a loan software to collect information from prospective customers such as phone numbers, bank notifications of transactions and BVN and credit scores of every borrower.
To be eligible for larger amounts, ensure that you keep a record of your bank transactions on your mobile and you don’t have outstanding debts from other loan applications!
It’s easy to use, simply download the application from the Google Play Store and enter certain details about yourself and the app will review the information you provide and determine your credit score, and then make an offer for a loan within a matter of hours.
Table of Contents
How do you download an APK and take out an installment loan from Formoney the loan application
- Install Formoney, the Formoney personal loan App that is only accessible on the Google Playstore and install it on the back of your Android phone.
- Make an account by entering your telephone number.
- It is recommended that the number you have linked with your BVN as a unique password will be provided to the BVN to verify your identity.
- Input your basic Know-yourcustomer KYC details, which include your address for residence, next of kin information and your employment information.
- You’ll also have to submit the Biometric confirmation number BVN.
- It will cost you N30 to connect the ATM debit card on your account in order to improve your chances of getting an amount that is higher.
- One-time username and password OTP is sent directly to you mobile to verify your information.
- Following the submission of the loan request, program will evaluate your credit score. The final results will be displayed in the application.
- The final result should be shown within less than two minutes. If you’re eligible for an loan, the amount will be paid directly into your bank account.
- You should ensure that you’re using a quality phone with sufficient memory as you’ll need to capture a crisp and live selfie to verify your verification of your identity.
Be aware that affixing your ATM card with N30 doesn’t assure you that you’ll be able to be approved for a loan. You still must get a credit score.
The N30 that is charged to bind the ATM debit card in your checking account is refunded however it can take anywhere between 7 and 12 days for the money to be returned in your banking account.
Your BVN is connected to the credit score you have, therefore should you have an outstanding loan with another lender or did not pay your other lenders on time be prepared for your application to be denied.
Credit score a summary of previous loans as well as the amount of time you pay your bills cash transactions coming into or out of the bank accounts, and other details.
If you download this application, you must agree to allow access to your phone book contacts which can be your guarantors. text messages to view your bank transactions, and apps for your phone to track how you interact with different loan apps, and other information it utilizes to increase the credit score.
Does Formoney loan app legitimate or a scam?
Formoney loan application is a legitimate loan application which offers micro-loans up in excess of N100,000 to its customers, however it comes with extremely high rates of interest and bugs that hinder seamless registration. Be cautious before making any online loan. Make sure you read the reviews of other customers before submitting an application for loans in Nigeria.
You must be aware that these loans are not regulated or registered through CBN, CBN or any other government organization in Nigeria. The responsibility lies with you for the safety of your transactions through them , and there’s no remedy for inadequate customer service.
Its availability in the Google Play Store does not guarantee that transactions conducted on it will be safe. The store only provides the possibility of downloading and you are accountable for your security when using loan applications in Nigeria.
Pros
- Operates in various African countries, including Kenya.
- It’s legitimate, and has been confirmed by the admin that they actually offer loans.
- Absolutely online, no need for collateral.
- The loan is high, and can be that can reach 100k.
Cons
- There are serious issues with networking that make it difficult to register.
- The loan is disbursed after approval. Some customers may wait days, or even weeks to receive alerts.
- The loan’s duration, especially for those who are new to the loan, begins at only 7 days.
- High interest rates for smaller loan amounts.
- Rejection rate is high.
- The app is only compatible with Android smartphones.
When you take out a loan, remember the repayment schedule. If you are taking 60 days of loan that has two installments of repayment it could be that the app tries to debit your account automatically when the due date is the first installment, and may charge you for overdue fees before the expiration date of your 60 days.
You can modify your ATM card’s password to stop auto debit. This application has been found to purposely auto debit customers, even after they’ve completed transactions through bank transfers.
There is no regulation in Nigeria the majority applications are loan sharks that could threaten to send out messages to family members, warning you that they are scammers in the event of a default on your loan. It is recommended to stay clear of these apps if there are other alternatives.
Rate of interest?
Formoney provides:
1 Loan amount ranging from N10,000 to N100,000.
2 Repayments from 91 days up to 365 days.
3 Simple to secure a credit.
Interest rate as low as 12 percent APR
Example:
In the case of a loan that is valued at NGN5,000 and the period of loan is 180 days with an interest of 12.5% The total interest would be NGN5,00012% = NGN600. The total amount to be repaid will be NGN5,000+ 5600 NGN.
This rate of interest and time is an example. You can expect the amount of your loan and its duration to be considerably shorter in the event that you’re borrowing this first time. You may be able to increase the amount by keeping accurate documents and repaying the loan in time.
What are the rules?
- You must be a legal citizen or a legal resident of Nigeria
- You must be at the age of 18.
- You should have a monthly source of income.
- Make sure you connect your ATM card onto your account
- Please provide the names for two kin including their contact numbers.
- Have a credit score that is good and no unpaid loans with other creditors.
- Maintain a account in your bank.
- Your phone number should match that which is linked to your BVN.
- You must have a valid government-issued ID card.
What happens if I fail to repay my loan, or make my payment on time?
Repayments that are late automatically result in the cost of 2.2% per day. It is advised to not overpay deadlines. Paying the loan on its due date allows you to get access to larger loan amounts. In the event of late repayments, it will impact your chances of getting future loans or bigger ones. If you are extremely late with your repayments, you’ll be recorded to the First Central Credit Bureau. The blacklisting process of the First Central Credit Bureau may impact your ability to get loans from other lenders.
Formoney loan app customer service number
Phone:
• Service Email: support@formoney.loan
• Our Office Address: 2a, Isaac John Street, GRA, Ikeja, Lagos, Nigeria
