This article will answer the question of whether the Can Loan app blocks my BVN or block my bank account.
The Biometric Verification Number (BVN) is an 11-digit unique number that uniquely identifies each Nigerian when they interact with the country’s financial infrastructure. This number is administered and controlled by the CBN, in collaboration with licensed commercial banks.
Can a loan application block your BVN if you are not paying your loan on time? Technically, the answer is no. In cases where you have violated serious laws, only the CBN can blacklist the BVN. However, loan apps can blacklist your BVN and prevent you from applying for loans through other apps.
An app for a loan cannot ‘BLOCK’ a BVN. They can only stop you from getting additional loans through their platform, or loans from any other loan app.
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What happens if I can’t repay my online loans?
Even before your due date, you will start getting persistent calls and SMS from the loan company. After your due date, they will start adding late fees to your balance. Then the loan company will try to auto-debit the ATM card you have linked to your profile.
when all these fail, some online loan apps in Nigeria are notorious for sending derogatory messages to the contacts of their defaulters. others like Branch, Carbon, and FairMoney will pass your contact to a loan recovery company that will call you persistently until you repay the loan.
Can I go to Jail for not paying online loans?
No, you cannot go to jail for defaulting on your loan repayment. The loan company wants their money, and when you’re in jail you can’t repay. Tho some loan sharks have been known to threaten their customers with lawyers and jail terms, they cannot send anyone to prison.
Why do loan apps ask for BVN?
Your BVN is your unique identifier linked to every transaction you perform in Nigeria. Because every Nigerian only has one it makes it easier for the loan apps to identify loan defaulters and deny them loans.
Are loan apps legal in Nigeria?
Some loan apps are legally registered and regulated by the CBN as microfinance institutions. But the majority of the online loan apps that operate in Nigeria are illegal and unregistered. See this list of CBN-approved loan apps in Nigeria.
How do I block an online loan app?
You probably want to prevent the loan app from removing money from your bank account without your consent. After binding your ATM card to your profile, the only way to prevent this is to block and deactivate the ATM card. You can do this through your bank’s app or simply go to your bank to block your card and request a new one.
Changing your card password does not stop auto debit.
Can loan apps access my contacts even after uninstalling them?
Yes, they still have your contacts, you grant them access to your contacts when you first download the app and most loan apps make a copy of your contacts immediately.
You can still prevent defamation by deleting your WhatsApp picture or limiting access to it to only your saved contacts by changing your privacy settings.
Most loan apps that defame people usually get their pictures from WhatsAppprofilese.
Which loan app has the lowest interest rate in Nigeria?
Branch, Carbon, Kuda, and commercial bank apps have low-interest rates. The interest rate on loan apps is not uniform, it is influenced by factors such as credit score and repayment history of each borrower.
If you have further questions related to loan apps in Nigeria, leave them in the comment section below and check back on this webpage for updates.
I did not request a loan, yet money was disbursed to my bank account. what should I do?
Sometimes loan apps do disburse money into a customer’s bank account who did not request one, or a customer might fill out the form and later change their minds due to the high-interest rate or small repayment tenure, yet money will be disbursed into their accounts.
If you are experiencing something similar, immediately deposit back the principal amount that was sent to your bank account to avoid paying interest on it later.
I mistakenly overpaid more than I borrowed from a loan app, what should I do?
Maybe you’re supposed to pay back N12,000, but you mistakenly sent N120,000 to the loan app’s account. In such a situation, you should request another loan for the amount that you overpaid. That is N108,000 in this example. It is usually difficult to get reimbursements in such cases, which is why you should be very careful and double-check before confirming any transaction.