In Nigeria, the common man’s access to finance has been a serious issue. Before today, getting a loan was nearly impossible, making life tough for people who wished to establish a business or had other pressing financial demands to meet.

It all changed in 2016 when lending apps were introduced. These mobile applications allow you to receive a loan in minutes, and the best part is that no collateral is required. Many people hopped on board because of this intriguing growth, and these apps from diverse service providers have now become household brands.

Whatever has a positive side in life tends to have a negative side, and loan applications are no exception. It has recently made headlines because these applications have been accused of being harsh in how they punish customers who default on payments, including calling various persons in the defaulter’s phone contact and even posting obituaries online or labeling the defaulter as a wanted criminal.

Privacy advocates have condemned the lending applications’ use of this strategy and called on the government and other regulatory organizations to put an end to the inhumane practice. Without a doubt, it is unethical, but can the loan apps truly be blamed?

Customers of these lending apps are subjected to such horrors for one and only reason: they defaulted on payments, and the truth is that this is not something that can be handled lightly.

When a loan is given out, it is generally accompanied by collateral to protect the lender in the event that the borrower defaults on their payments. This eliminates the need for the financial institution to pursue the defaulter. In this situation, loan applications do not ask for collateral, so they have nothing to fall back on if a borrower defaults. They must consequently turn to some heinous technique of putting pressure on the defaulter to pay, or else the lending app providers will quickly go out of business.

They will, in fact, go out of business since Nigeria is not one of the most trustworthy countries in the world when it comes to money. Many people take out these loans in the mistaken belief that they are getting free money and will not have to pay them back. Why wouldn’t the loan app come out and look for these people?

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Some people miss payments for legitimate reasons that aren’t their fault, but these loan applications won’t listen and will continue to harass them. It is important to remember that this service is intended for payment on or before the due date. It is not their problem that they are facing difficulties. It will just make things more difficult for the system.

If you want to take out a loan from one of these conveniently available applications, you must never default on your payments. They must plan how they will repay the loan and where the money will come from before taking it out. This must be carefully studied, or else the ugly will pay a visit. If they are aware that they will not be able to pay back the debt, they should avoid it at all costs. Yes, there is temptation, as more loan applications are being created at a rapid pace.

This is a positive development since more money is available, but it is also a negative development because of what happens on the other end. If one want to avoid such a horrific calamity, the task is simple and can be left in the hands of others.