If you are looking for a comprehensive list of fake loan apps and companies in Nigeria, this article is definitely what you need right now.
We urge you to read down carefully as we take our time to give you the top 35 fake loan apps and companies in Nigeria and how to identify fake loan apps.
Overview of Fake Loan Apps
There has been a quantum leap in the rise of digital lending platforms. Stumbling on Google Play Store, one would find countless apps posing as digital lenders.
While digital lending platforms brought a seamless banking system to individuals and organizations, their rise also increased the number of scammers who exploit their victims through their needs.
They operate on the wave of the anonymity of the internet to penetrate evil. These fake loan apps can also be called loan sharks. This is because they come in disguise of helping with loans while the aim at duping their victims.
How Fake Loan Apps Work
Fake loan apps work by riding on the inexperience and desperation of people who require credit to solve emergencies.
Some have low-interest rates with lengthy and flexible repayment terms, while some offer the opposite.
Some even demand advance payment before the loan disbursement and often threaten and harass their victims.
10 Proven Ways To Identify Fake Loan Apps and Companies.
In this section, we will look at ten ways to spot a fake loan app, after which we will list some fake loan apps. Mind you, we have carefully researched these means. So be sure to keep reading.
Unavailable on Google Play Store
The first sign of a fake loan app is being unavailable on Google Play Store. Therefore, most fake loan apps can only be accessed through unofficial platforms.
To ensure that there is ordering and that scammers are drastically reduced, Google has tightened its filters to prevent further instances of fraud and has also kicked out several fraudulent applications from its store at the order of the FCCPC.
It is important to note that most of the victims of these fake loan apps not on the Google Play Store are Nigerians seeking loans without BVN, which has become a selling feature of these loan sharks.
Abusive And Aggressive Collection Methods
Fake loan apps are abusive and aggressive in their collection tactics. They do this by offering a loan in exchange for access to the personal information and data of the victims, such as the phone book and credit balance.
Within a few days of granting the loans, these fake loan apps demand repayment with fake and high interest through text messages and phone calls.
This leads to harassment and threats against the borrower and his theory
Furthermore, these loan sharks send photomontage messages to the connections of persons who have requested loans, accusing them of committing crimes.
Fraud, defamation, and extortion, which are felonies under Nigerian law, are distinct signs of a fake loan app.
Unlicensed By The Central Bank Of Nigeria
Every legal lending financial institution must be authorized by the Central Bank of Nigeria’s (CBN) registration or the National Information Technology Development Agency’s (NITDA) register of monitored businesses.
This avoids exploitation and speeds up the identification of fraud attempts. Carefully check if the lending platform is verified in the Nigerian registry of authorized financial agents.
Use Of HTTP Instead Of HTTPS
Another way to identify a fake loan app is to visit their official website and ensure the URL is secured.
To do this, check if the web address begins with “HTTPS.” If it begins with that, then the app is secure though there are exceptions.
However, if it has “HTTP” without the “s,” it is likely a loan shark app. Legal organizations must comply with security rules to encrypt user data.
In addition, the URL must have a lock that shows that the website has an SSL certificate, which makes it a secure website.
Bad Customer Reviews
With customer reviews, one can determine whether a loan app is fake, if the service they offer is legal, and the customers’ experiences.
No matter how desperate you are, be patient and disciplined enough to examine the loan app’s credibility before applying. A thorough background check might be the difference between being a victim of a fake loan app and acquiring legal loans.
Advance payment demands
Asking for advance payment before loan disbursement strongly indicates that the loan app is fake.
As we stated, these scammers ride on the wave of the user’s desperation and inexperience to opt for payment in advance.
Some of these fake loan apps at times claim that the advance payment is a fee to secure the loan or as insurance. That is a red flag.
Legit loan applications may charge you an initial fee, which must be outlined in the contract, but this amount will never be in advance; but in your credit payment.
Requests for passwords and Confidential information
Some fake loan apps also demand confidential information such as bank account passwords and credit card numbers.
Please, to avoid regret, do not disclose confidential information to any loan application requesting it.
High Or Extreme Low-Interest Rates
Beware of loan apps with interest rates close to 0%, ng, and flexible repayment terms.
Before seeking any loan application, it is important to investigate the interest rates offered by the competitors.
Again, some fake loan apps have outrageous interest rates, which can be difficult for an average Nigerian to pay. Google has this to say in one of its policy “Any app that offers personal loans with an Annual Percentage Rate (APR) of 36% or higher is no longer expected to be available on the Play Store. To keep their apps in the Play Store, lenders must adjust their products and business models to meet Google’s requirements.”
No website Or Social Media Platforms
Any simple loan app must have a secured website showing its vision, helping to verify the company’s credibility and genuity. Some fake loan apps have been observed to surface on the Play Store without a solid website. Some of them do not even have a strong online presence.
Short Repayment Tenure
Another proven means to spot a fake loan application is through loan tenure. Some cybercriminals offer a loan tenure between 7-14 days which is against the normal tenure of 60 days.
Any loan application with short tenure between the stipulated time calls for scrutiny. And to be on the safer side, avoid such platforms.
Here’s what Google has to say about this;
“We only allow personal loan apps with full repayment required in greater than or equal to 60 days from the date the loan is issued… apps that fail to do so will be removed without further notice.”
35 Top Fake Loan Apps and Companies In Nigeria
Numerous loan apps are parading themselves as genuine but are wolves in sheep’s clothing. To avoid falling prey to these criminals, you have to have the methods we outlined earlier in the identification of fake loan apps at the snap of your fingers.
Here are the top fake loan apps you must avoid if you love yourself and your money. Meanwhile, there are other fake loan apps, but the following are obvious;
- Cash Mall
- Cash Wallet
- Ease Cash
- Rapid Naira
- Speedy Choice
- Lucky Loan
- Star Loan
How To Stop Loan Apps From Accessing Your Contact
Most loan apps, especially fake ones, can be so embarrassing and irritating most times. Some of them deploy abuse and aggression while collecting their loans.
They access your contact list and threaten them. Some would even extend to defame you and also cause damages damage
Hence, you must be careful how you grant apps access to your contact list and other personal information.
To stop loan apps from accessing your contact, do not download any app you are unsure of and try to repay your loan when due.
However, you can follow the guidelines provided below to restrict access to your contact list if you have downloaded the app already.
- Open your phone and go to settings.
- Click on apps under the settings
- Click on permissions.
- Choose the loan app to remove permissions and,
- Select Contacts under permissions
We have come to the end of this very article. We have discussed the list of fake loan apps and companies in Nigeria that you should avoid like the plague. How to identify fake loan apps and how to stop loan apps from accessing your contact list and other personal information.
We are confident that this article satisfied your search intent. For further queries, feel free to use the comments section. Be wise!