list of Illegal Online Lending Apps In Nigeria
Alternative to traditional bank loans, these illegal lending apps offer a faster and more convenient banking system, especially for those without a formal banking history. Borrowers can get pre-approved for small loans within minutes, potentially solving immediate financial problems.
Fraudulent shadow loan apps have emerged in today’s finance industry. Exploiting the vulnerabilities of borrowers, often charging exorbitant interest rates, and resorting to aggressive tactics to collect debts are some of the dirty practices these apps indulge in. This can worsen financial situations for those already struggling.
Which loan apps are illegal in Nigeria?
Federal Competition and Consumer Protection Commission (FCCPC) as of July 2023, delisted 38 loan apps from Playstore for operating illegally in Nigeria. Wait just before you start checking the full list of the delisted apps also take a peep at the top 20 loan apps in Nigeria that you can trust:
- Swiftkash App
- Hen Credit Loan App
- Cash Door App
- Joy Cash-Loan Up To 1,000,000 App
- Eaglecash App
- Luckyloan Personal Loan App
- Getloan App
- Easeloan Apps
- Naira Naija
- Cashlawn App
- Easynaira App
- Crediting App
- Yoyi App
- Nut Loan App
- Cashpal App
- Nairaeasy Gist Loan App
- Camelloan App
- Nairaloan App
- Moneytreefinance Made Easy App
- Cashme App
- Secucash App
- Creditbox App
- Cashmama App
- Crimson Credit App
- Galaxy Credit App
- Ease Cash App
- Xcredit
- Imoney
- Naira Naija
- Imoneyplus-Instant
- Nairanaija-Instant
- Nownowmoney
- Naija Cash
- Eagle Cash
- Firstnell App
- Flypay
- Spark Credit
- Luckyloan Personal Loan App
How to Identify these illegal loan apps parading the Nigerian financial market.
Fake loan apps have become masters of disguise, and this wicked act of theirs has made it difficult for serious customers to distinguish them from legitimate ones. Here’s How to Recognize Fake Loan Apps in Nigeria:
They Mimic Legitimate Apps
The look and feelings of real loan apps are often copied by fake apps, looking so complete with professional logos and seemingly transparent terms. This facade can lure borrowers into a false sense of security.
Exploiting Desperation
Vulnerable borrowers in urgent need of money are mostly targeted. while offering seemingly quick solutions without emphasizing the potential dangers these apps will prey on your financial anxieties,.
Deceptive Marketing
misleading advertisements that promise easy loan approvals with minimal requirements are often used by these Fake apps most of the time. This can be particularly tempting for those who have been rejected by traditional lenders.
Fake Reviews and Endorsements
I’ve seen in real time where most of these apps plant fake positive reviews or exploit social media influencers to create a false impression of legitimacy.
Blurring Lines on Permissions
Standard permissions like contact details are normally requested. However, they may sneak in requests for unnecessary access to private data like photos or messages, which can be used for harassment later.
Does the loan app have a secure website?
In the website address bar look for the HTTPS protocol (indicated by a lock symbol). This indicates a secure connection and helps protect your information if you visit the website e.g. The pic below is from Fairmoney and you can clearly see the locked key symbol that signals a secure website.
Does the app have a verifiable physical location?
A functioning website and a real physical address are what a legitimate loan app should have. This allows you to verify their legitimacy and provides a point of contact if needed. Fake apps often lack a physical address or list one that can’t be verified.
Inaccessible from the Google Play Store
Reputable loan apps must be available on the Google Play Store. Apps that are unavailable through official channels like the Play Store often haven’t gone through security checks. Downloading them can put your device and data at risk.
Unfair and Abusive Collection Practices
Apps that resort to threats, harassment, or that contact your family and friends about your loan should be far away from you. Legitimate lenders will have clear and fair collection practices.
How to Protect Yourself from Loan Scams
Spotting fake loan apps is very important I agree with that. Some additional tips for safe borrowing practices in Nigeria and other tips to help protect yourself from these loan sharks are all below:
- Research and Compare: You can check the Federal Competition and Consumer Protection Commission (FCCPC) website or app for a list of approved lenders note: Jumping at the first offer is not the best option, I would suggest you take your time to research and compare loan options from licensed lenders.
- Read the Fine Print: Before you commit understand all the costs involved. Thoroughly read the terms and conditions of any loan before applying. Pay close attention to the interest rate, Annual Percentage Rate (APR), fees, and repayment schedule. before you commit understand all the costs involved.
- Borrow Responsibly: Create a budget and factor in the loan repayment before applying. Missing loan payments can damage your credit score and lead to even bigger financial problems, so I would suggest you borrow what you can realistically afford to repay on time.
Stay Informed and Alert
- Never Share Financial Information Unsolicited: Legitimate lenders won’t ask for your bank account information or other sensitive details upfront. Don’t share this information unless you’re confident in the lender’s legitimacy.
- Report Suspicious Activity: If you encounter a suspected fake loan app, report it to the FCCPC using their website or app. This helps protect others from falling victim to the scam.
Conclusion
You actually can protect yourself from falling victim to these scams by familiarizing yourself with the red flags of fake loan apps and by also exercising caution. Remember, reputable lenders will have a legitimate online presence, fair lending practices, and respect your privacy.
Ask questions and do your research before committing to any loan don’t be afraid. By staying informed and following the tips outlined in this blog, you can secure the financial resources you need without putting yourself at risk.
