Business

4 Kinds of loan applications you should avoid in Nigeria

Published

5 years ago

November 20, 2021

The conversations about activities of loan applications in Nigeria has been going on for quiet sometimes now. With many concerns about how these loan apps have outrightly violated the rights of their customers, steps have already been taken by government to sanction those found wanting and, operating outside the deed of agreement between the lenders and the borrowers.

Well! It might be extremely difficult to completely convince people not to take soft loans from these loan apps. However, people can be advised appropriately on which kinds of loan apps they can patronize and those they should run from. This is based on the assessment of people’s wide range experiences from the use of these loan platforms.

So, here are four (4) kinds of loan apps we should all try and avoid.

1. Those with extremely high interest: avoid loan apps that have an interest rate that is above twenty percent (20%). Some of these apps I learnt have an interest rate as high as fifty percent payable within seven days. That is not just outrageous, but also ridiculous. What on earth will someone engage in to raise such a huge amount of money?

2. Those with short repayment schedule: if the repayment schedule is not in months, you should avoid the loan app. Some have extremely short repayment schedule. Some as low as five days, majority seven days and a few would give ten days, fifteen days and maximum a month.

3. Those who you cannot trust with your bank information, because majority of them require you to divulge your core financial details like bank verification number, ATM details etc.

4. Those who will indiscriminately call and send random messages to your contact labelling you as a fraudster. These ones will sink you into depression and possibly make you suicidal.

A word they say is enough for the wise. I hope this piece would discourage you from taking loans from these guys. If you ever need a financial assistance,it is advisable you seek help from family and friends, than turn to these loan app operators.