In this article, we’d be seeing the list of fake loan apps in Nigeria, plus tips on how you can identify them to avoid falling scams. Before we proceed with the article, let’s take a moment to explain what a loan means. A loan means a financial transaction which involves one party, typically a financial institution lending money to another party, typically a business or even an individual. This is done with the understanding that the borrower will repay the loan over time with interest.
Loans can be used for several purposes, including; financing a business, paying for education, purchasing a home or even covering other unexpected expenses.
It usually involves a contractual agreement between the lender and borrower outlining the terms and conditions of the loan, including the amount borrowed, interest rate, repayment schedule, and any fees or penalties.
7 tips on how to identify fake loan apps in Nigeria
There are no really sure tips on how to identify fake loan apps, especially in this age where everyone has access to the internet, and of course, web/app developers. The owners of these fake apps can equally pay developers to replicate the features in the legitimate ones.
That being said, here are some tips to help you identify fake loan apps:
- Do your research: I always recommend carrying out proper research before making purchases or joining new programs. Before creating an account on the loan app, try running a Google search on their names. In some cases, I add the keyword ‘scam’ to the app’s name, it’ll help narrow down your search to related content.
Also, look for information on their email, phone number and office address. A good business should have a physical, verifiable address. In addition to the above, also endeavour to check out their reviews on Playstore, App Store and social media accounts.
- Check the permissions: Why will a loan app need access to your location, contact or camera? While in some cases, it’ll need some permissions for verification purposes, I’d recommend revoking the permission once you’re done with it. In short, be wary of apps that require more permissions than they need.
- The branding matters: Try checking the branding and logo of the app to see if they match what you have on the official website and social media profiles. If they do not match, something could be fishy…
- Check for fees: While some legit loan apps may charge an interest or processing fee, they’d never ask you to pay upfront or request payment via a third-party payment app or bank account. In most cases, the processing fee will get deducted from the issue amount.
- Instant approval? Run: Why will a loan app promise you instant approval when you’re not going to submit collateral? Some even go as far as promising to give loans without checking your credit scores. These are often signs of fake loan apps, and might just be interested in stealing your financial information.
- Be cautious of unsolicited messages: Legitimate lenders typically do not solicit customers through unsolicited messages. In some cases, you should want to know how a loan app got your information before borrowing from them. If you receive unsolicited messages promoting loan apps, be cautious.
- Finally, Trust your instincts: ‘If it’s too good to be true, then it’s not.’ When an app promises you an interest rate close to 0% with a lengthy and flexible payback term., without any collateral and they tick some of the points above, run. In most cases, you don’t have any reason to doubt the legitimacy of a financial institution.
By being cautious and following the above tips, you can protect yourself from fake loan apps and avoid falling victim to scams.
List of Fake Loan Apps in Nigeria
Unfortunately, there have been reports of fake loan apps in Nigeria, which have been used to scam unsuspecting individuals. These fake loan apps may claim to offer quick loans with low-interest rates and easy repayment terms, but they often end up charging high fees and interest rates or stealing personal information.
Here’s a list of some popular fake loan apps in Nigeria:
- Cash Lion
- 9ja Cash
- Cash Mall
- Lend Cash
- Ease Cash
- Fast Money
- Naira Plus
- Borrow Now
- Cash Wallet
Which of these apps have you used? What’s your review? Which app should be included in the list?
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