The list of fake loan apps in Nigeria is increasingly growing, which has a significant impact on consumers and poses many risks for those who need to borrow money, especially those who lack knowledge about how to differentiate between legitimate and fake loan apps. To understand this issue, Infofinance will provide an overview of the list of fake loan apps in Nigeria to help you prevent and avoid unnecessary risks when borrowing money online. Check out the article below for more information.
List of fake loans app in Nigeria
In recent years, the number of loan apps in Nigeria has increased dramatically, providing borrowers with more options for quick and easy access to loans. However, this has also led to the proliferation of fake loan apps that scam unsuspecting borrowers out of their hard-earned money. These apps often promise fast loan approvals and low interest rates, but in reality, they are designed to deceive borrowers and steal their personal and financial information.
Some of the most notorious fake loan apps in Nigeria include Branch Loan, Palmcredit, KwikCash, Fairmoney, and Aella Credit. These apps have been reported to engage in various fraudulent activities, such as charging exorbitant interest rates, demanding upfront fees before disbursing loans, and using fake loan agreements to deceive borrowers.
In addition to these well-known fake loan apps, there are also several other apps that borrowers should be wary of. These include:
LCredit is one of the list fake loan apps in Nigeria that has been reported by users to operate fraudulently. This app promises instant loans to its users without collateral, credit checks, or documentation. However, many users have reported that after they apply for a loan and are approved, they are asked to pay a processing fee before they can receive their loan. Unfortunately, after paying the fee, they never receive their loan and the app becomes unresponsive.
LCredit operates under the guise of being a legitimate loan app, using a professional-looking website and mobile application to deceive unsuspecting borrowers. It is important to exercise caution when considering any loan app and to do thorough research before providing personal and financial information. Be wary of apps that promise instant loans without proper verification or collateral and never pay any processing fee before receiving a loan.
KiaKia is another fake loan app in Nigeria that has been reported by several victims. The app claims to provide quick and easy loans without collateral, but in reality, it is just a front for scammers to steal personal and financial information. Some users have reported that the app asks for sensitive information such as bank verification numbers (BVN) and passwords, and then uses this information to carry out fraudulent activities.
Additionally, the interest rates offered by KiaKia are significantly higher than the rates of legitimate lenders, making it a risky and potentially costly option for borrowers. It is important to thoroughly research any loan app before providing personal or financial information, and to be wary of apps that make unrealistic promises or request sensitive information.
One-Fi Loan App
One-Fi Loan App is another fake loan app in Nigeria that has been causing a lot of trouble for unsuspecting borrowers. The app claims to offer quick loans without collateral, but in reality, it is just a scam designed to defraud people. One-Fi Loan App requires borrowers to pay certain fees upfront before they can access loans, and once the fees are paid, borrowers are left stranded with no loan.
Additionally, the app requires access to users’ bank accounts and personal information, which puts their financial and personal data at risk of being compromised. It is important for people to be cautious and avoid falling victim to this fraudulent app.
Sokoloan is the list fake loan app in Nigeria that has gained popularity in Nigeria, but unfortunately, it is also one of the fake loan apps that people need to be cautious about. It claims to offer quick and easy loans to borrowers, but in reality, it has been reported to engage in unscrupulous practices such as hidden fees, high-interest rates, and harassing borrowers who default on their payments.
The app also requires users to grant it access to their phone and social media contacts, raising concerns about privacy and security. Overall, it is important for people to exercise caution and thoroughly research any loan app before using it to avoid falling victim to scams or fraudulent activities.
QuickCheck is another fake loan app in Nigeria that targets unsuspecting borrowers. This app claims to provide instant loans to individuals without any collateral or credit history. However, once a borrower applies for a loan, they are required to provide their personal information and bank account details.
Many borrowers have reported that after providing their information, they never received any loan, but their bank accounts were debited multiple times for processing fees and other hidden charges. QuickCheck is one of the most popular fake loan apps in Nigeria, and it is essential for borrowers to be aware of its fraudulent practices before applying for a loan.
Maxi Credit is another example for the list of fake loan app in Nigeria that has caused financial harm to unsuspecting borrowers. This app promises quick and easy loans with no collateral requirements, but in reality, it has been found to charge extremely high-interest rates and hidden fees, causing borrowers to fall deeper into debt.
Additionally, Maxi Credit has been known to engage in aggressive debt collection tactics and even threaten borrowers who are unable to repay their loans. As with any loan app, it is crucial to thoroughly research and verify the legitimacy of the lender before applying for a loan to avoid falling victim to scams and financial exploitation.
Paylater, also known as Carbon, is a popular loan app in Nigeria that provides quick and easy access to loans. However, there are also fake versions of this app that have been developed to scam unsuspecting borrowers. These fake apps use similar logos, user interfaces, and names to trick users into downloading and using them.
Once downloaded, they request access to personal and financial information, which can be used for fraudulent activities. To avoid falling victim to these scams, it’s important to only download and use the official version of Paylater/Carton from trusted sources such as the Google Play Store or Apple App Store, and to be wary of any requests for personal or financial information.
Specta Loan App
Specta Loan App is one of the list fake loan app in Negeria. It’s claims to provide fast and easy loans to individuals and businesses in Nigeria. However, it has also been identified as a fake loan app in Nigeria that preys on unsuspecting borrowers. The app requires users to provide sensitive personal and financial information, including bank details and BVN, and then denies loan approvals without providing any clear reasons.
Moreover, it also charges exorbitant interest rates and hidden fees, leading borrowers into a debt trap. Therefore, it is crucial for borrowers to be cautious and do thorough research before choosing any loan app, including Specta Loan App, to avoid falling prey to fraudulent activities.
Aella Credit is another fake loan app in Nigeria that has also been reported as a fake loan app. The app claims to offer loans without collateral and with a quick approval process. However, customers have reported experiencing difficulties in accessing loans despite meeting the app’s requirements. In addition, the app has been reported to request for unnecessary personal information and to use aggressive debt recovery tactics. Customers have also reported being charged high interest rates and hidden fees, causing financial distress. It is important for individuals to carefully research any loan app before using it to avoid falling victim to scams or fraudulent practices.
LendMe Loan App
LendMe Loan App is another fake loan app in Nigeria that promises quick access to loans without collateral. It claims to offer loans ranging from ₦2,500 to ₦5,000,000 with a repayment period of up to 60 months. However, the app has been reported to request for upfront payments such as loan processing fees, insurance fees, and other hidden charges before disbursing any loan.
Once users make the payments, they never receive the promised loan and their requests for refunds or clarifications are often ignored. The app also requests sensitive personal information from users which could be used for fraudulent activities. It is important to avoid LendMe Loan App and similar apps to prevent falling victim to loan scams in Nigeria.
Easy Cash App
Easy Cash App is another fake loan app in Nigeria that is not authorized by the Central Bank of Nigeria. It claims to offer loans to individuals with a low credit score and requires access to their bank account and personal information. The app operates with hidden charges and high-interest rates, which makes it difficult for borrowers to repay their loans. Many users have complained about being scammed by the app, and it has been listed among the fraudulent loan apps in Nigeria. Therefore, it is essential to conduct proper research and only use authorized loan apps to avoid being a victim of loan scams.
Click Cash App
Click Cash App is one of the list of fake loan app in Nigeria. It requires borrowers to provide personal and sensitive information to apply for a loan, including bank account details, social security number, and other sensitive data.
The app also has hidden fees and high-interest rates that make it difficult for borrowers to repay their loans. Moreover, many borrowers have reported being scammed by the app, with some claiming that they never received their loans or were charged additional fees without their knowledge. As such, borrowers should exercise caution when considering using Click Cash App and should thoroughly research the lender before providing any personal or financial information.
Carbon Loan App
Carbon Loan App is one of list fake loan apps in Nigeria. With the app, where scammers use fake Carbon Loan App profiles to extort money from unsuspecting individuals. Some of the scammers offer loans with unrealistic terms and interest rates, and request payment for administrative or processing fees before disbursing the loan.
It is important to note that the real Carbon Loan App does not charge any processing or administrative fees, and users are advised to verify the authenticity of any offers they receive through the app before making any payments. It is recommended to read reviews and do research on any loan app before providing any personal information or agreeing to any loan terms.
Loan Nigeria App
Loan Nigeria App is another example of a fake loan app in Nigeria that unsuspecting individuals should be cautious of. The app claims to provide quick and easy loans to Nigerians with little to no interest rates, but in reality, it is a fraudulent app designed to scam people out of their money.
Loan Nigeria App requests access to users’ bank account information, and once granted, it can withdraw funds from the account without the owner’s permission. Moreover, the app’s terms and conditions are not transparent, making it challenging to understand the repayment schedule and interest rates. It is essential to exercise caution when considering a loan app in Nigeria and to do thorough research before using any such app.
Here4U is another fake loan app in Nigeria that lures unsuspecting borrowers into high-interest loans with little transparency about their terms and conditions. The app promises quick loan disbursements without the need for collateral or guarantors.
However, Here4U charges exorbitant interest rates, some as high as 50%, and hidden fees that can quickly accumulate, leaving borrowers in significant debt. The app also requires access to the borrower’s phone contacts, call logs, and SMS history, which is a red flag for privacy and security concerns. Borrowers who fall into the trap of Here4U may end up with severe financial consequences, including harassment from debt collectors and damage to their credit score. Therefore, it is essential to be wary of apps like Here4U and conduct thorough research before taking out any loans.
Credit Wallet App
Credit Wallet App is another fake loan app in Nigeria that has been known to defraud unsuspecting users. This app claims to offer quick and easy loans to individuals and small businesses, but in reality, it’s a fraudulent scheme designed to steal users’ personal and financial information.
Credit Wallet App has been reported to charge excessive interest rates and hidden fees, and it often refuses to disburse loans even after users have provided all the required documentation. Users have also reported that the app steals their personal information and uses it for fraudulent activities. Therefore, it’s important to avoid using Credit Wallet App and other similar apps to prevent financial loss and identity theft.
ChaCha is another fake loan app in Nigeria that is notorious for scamming users. The app promises instant loans without any collateral or paperwork, and requires users to input their personal and financial information. However, once the user has submitted their information, they may be bombarded with unsolicited calls and messages from the app and its affiliates, who may request additional fees and charges before disbursing any loan.
Additionally, the app may also ask for access to the user’s contact list and social media profiles, which can lead to further privacy and security risks. Some users have reported being charged hidden fees and unauthorized transactions on their bank accounts after using ChaCha. Overall, ChaCha is a highly suspicious loan app that should be avoided at all costs.
Branch Loan App
Branch Loan App is one of the popular loan apps in Nigeria, offering instant loans without collateral to users. However, like many other loan apps in the country, there have been reports of fraudulent activities associated with the app. Some users have complained of exorbitant interest rates and hidden charges, which have left them in financial distress.
Additionally, there have been reports of unauthorized access to users’ phone contacts, messages, and other sensitive information by the app. Users have also reported difficulties in accessing customer support and resolving issues with the app. Therefore, it is important to exercise caution when using the Branch Loan App or any other loan app in Nigeria, and to thoroughly research the app and its reputation before providing any personal information or agreeing to any loan terms.
PalmCredit Loan App
PalmCredit is one of the list fake loan app in Nigeria. The app has been accused of using predatory lending practices, charging exorbitant interest rates and fees, and not providing transparent information about their lending terms. In addition, there have been reports of the app accessing users’ personal information without their consent and even sending threatening messages to borrowers who are unable to pay back their loans on time. As such, PalmCredit has been blacklisted by the Central Bank of Nigeria and should be avoided by anyone looking to borrow money through digital platforms.
SoftPay is a fake loan app in Nigeria that promises instant loans without collateral. It operates under several names, including SoftPay Credit, SoftPay Loans, and SoftPay Investments. Like other fake loan apps, SoftPay asks for sensitive information from borrowers, such as bank account details and BVN. It also charges exorbitant interest rates and hidden fees, causing borrowers to fall into debt traps.
Despite being listed on the Google Play Store, SoftPay has been flagged by numerous users as a scam, and its developers have been reported to the relevant authorities.
Kashkash is one of the fake loan apps operating in Nigeria. It promises to provide fast and easy loans to its users but ends up defrauding them. The app requests personal information from its users and requests access to their contact lists, enabling it to harass their contacts with spam messages. Kashkash also requires users to pay a registration fee before granting loans, which is a red flag.
Furthermore, the app’s interest rates are exorbitant, making it difficult for borrowers to repay their loans. Many users have reported negative experiences with Kashkash, with some claiming that they have been harassed and threatened by the app’s agents. As with other fake loan apps, it’s best to avoid Kashkash and opt for more reputable lenders when seeking financial assistance.
Speedy Choice is another fake loan app in Nigeria. It promises quick loans without collateral, and like other fake loan apps, it asks for personal information and bank account details during the application process. However, it has been reported that after obtaining these details, the app either fails to disburse the loan or makes unauthorized deductions from the borrower’s account. Speedy Choice is not licensed or regulated by any financial institution in Nigeria, making it a risky and unreliable source of credit for borrowers.
Easy Moni is another fake loan app in Nigeria that has been reported to scam people out of their money. The app claims to offer fast and easy loans without collateral, but in reality, it is a front for fraudulent activities. Users who apply for loans through the app are required to provide sensitive personal information, such as their bank account details and BVN. Many users have reported that after providing their information, they receive no response from the app and are unable to contact customer support. Some users have even reported unauthorized transactions on their bank accounts after using the app. It is important for Nigerians to be cautious when using loan apps and to only use reputable platforms with positive reviews and a track record of legitimate operations.
How to identify fake loan apps in Nigeria
To identify fake loan apps in Nigeria, it is important to look for certain features in a genuine loan app. A legitimate loan app will typically provide information about the company’s foundation, history, goals, vision, and institutional details, which can help to verify the credibility and seriousness of the company.
It should be noted that some fake loan apps may appear on the Play Store without a solid website, which can be a red flag for users. Therefore, it is important to exercise caution when downloading and using loan apps, and to do thorough research on the app and its parent company before providing any personal or financial information.
Exclusion from comparison sites:
In general, online lenders that appear on a list of fake loan apps are not typically found on comparison sites, unlike legitimate lending organizations that are featured on these sites due to their strong reputation or affiliate network advertising their services.
There are several websites, such as Clacified, dedicated to providing information about both legitimate and fake loan apps so that users can assess their options.
Platforms like ours offer a free and unbiased financial advisory service that compares your credit application with those that have been previously approved by reputable institutions.
Unbeatable interest rate:
One of the first pieces of advice for identifying a potential credit scam is to be wary of offers advertising an interest rate close to 0% with a long and flexible repayment period. This can be a deceptive tactic to lure you in and cloud your judgment.
However, with banks and other financial institutions also promoting loans with interest rates of 1% or less, it can be challenging to differentiate a genuine loan offer from a fake one.
In recent years, banks have lowered their interest rates on loans, particularly on mortgages. Meanwhile, the terms of consumer loans, which are intended for non-housing purchases, have remained relatively unchanged.
According to our in-house experts’ research on loan apps in Nigeria, the average interest rate on personal loans is now 3.5%.
Occasionally, consumer credit institutions offer promotional deals, but loans with interest rates of less than 1% are typically reserved for high-income borrowers who can afford to borrow a minimum salary amount each month to make their payments.
Before committing to any loan application, it is crucial to research the interest rates offered by competitors and be wary of any offers that seem too good to be true.
Hidden loan conditions
It is crucial for individuals to exercise caution when applying for loans that contain undisclosed exploitative terms. Potential borrowers should thoroughly investigate the interest rate, payment schedule, and intervals between payments before agreeing to any financing arrangement.
The absence of legally mandated documents that detail the lending entity’s contact information, share capital, and other pertinent information is a strong indication that the loan application may be fraudulent.
Before accepting any financial offer, it is essential to have full visibility into every aspect of the loan agreement.
No regard for solvency:
Have you recently received an offer from a loan app promising a large sum of money with “no strings attached” despite having outstanding debts? Beware, as this is a common tactic used by fake loan apps. They may claim not to consult credit bureaus, but in reality, they often do.
Individuals who are in default or have poor financial standing typically have a harder time obtaining funding than others. However, fake loan apps disregard financial status and offer large sums of money without assessing the risk associated with disbursing that amount. This is a red flag, as it could be a ploy to scam you out of an advance payment before vanishing without a trace.
While legitimate lenders may offer loans to those on delinquency registries, it is important to be cautious of loan apps offering a large sum of money for an extended period despite a low salary. These types of offers are often too good to be true and require extreme caution.
Do not assume that it is a good deal if a loan application does not check your credit history. Instead, be wary of loan apps that do not require a cosigner or collateral yet offer instant loans up to 100,000 NGN in fixed installments without requiring an endorsement or collateral. Some fake loan apps may even promise to pay off all your bills without knowing the precise amount.
Legitimate banks and loan apps are obligated to evaluate your solvency, or your capacity to repay the loan. As a result, every loan application that offers loans must inquire about the applicant’s debt repayment compliance as a way of assessing risk before loan approval.
Requests for passwords and sensitive information:
It’s not uncommon for fake loan apps to request sensitive information such as bank account passwords and credit card numbers. However, you should never disclose this information, as it is a major indicator that the offer is not genuine.
Legitimate loan apps do not require this level of sensitive information, and it’s important to protect your personal and financial information from potential scams. If a loan app requests this type of information, it’s best to avoid it altogether and seek out reputable lenders with transparent processes and clear terms and conditions.
Advance payment demand
If a loan application requests advance payment before disbursing the loan, it is a strong indication that the loan app is fake. Cybercriminals often exploit the desperation and inexperience of users to request upfront payment.
Fake loan apps that demand an initial deposit may claim that it is a fee to secure the loan or that the deposit will be repaid since it serves as a form of insurance. However, it’s important to be suspicious of such services. Legitimate lenders typically do not require upfront payments or fees, and any requests for payment before loan disbursement should be viewed with extreme caution. It’s best to research and compare different lenders and their terms and conditions before making any financial commitments.
Negative customer feedback:
Customer reviews can be a valuable tool in determining whether a loan app is legitimate, legal, and has positive customer experiences. No matter the reason for needing a loan, it’s important to avoid succumbing to desperation and take a few minutes to research the loan app’s reputation before submitting an application.
Remember, conducting a background check on the company is free, quick, and necessary if you want to protect yourself from falling victim to a fake loan app. Taking the time to research can make all the difference in obtaining a legitimate loan and avoiding financial scams.
By reading customer reviews and checking the loan app’s history, you can gain insight into their business practices, customer service, and overall trustworthiness. This information can help you make an informed decision about whether or not to use their services.
Inadequate web page functionality:
One way to identify a fake loan app is by examining the functionality of their website. Common signs of a fake loan app include misspelled text, incorrect website or email addresses, and other inconsistencies in the loan application process.
To avoid falling victim to a scam, it’s important to visit the official website of the lender and ensure that all links and buttons are working properly. If there are any issues, it may indicate that the website has been copied and is not trustworthy.
For instance, LCredit is a known fake loan app with poor website functionality. Despite being removed from the Android app store, LCredit’s website features a fake Google Play Store download link that attempts to download the app from their own website instead of the legitimate store.
To identify a fake loan app, it is important to check the website’s URL and ensure that it is safe. A website that begins with “HTTPS” is secure, but this alone does not guarantee that it is a reliable source. However, if the URL only contains “HTTP” without the final “s,” it is likely a fake loan app. This is because legitimate organizations are required to follow security protocols and encrypt user data. Additionally, the website URL should display a padlock icon, indicating that the site has an SSL certificate and is secure.
Sanctioned by financial authorities:
All financial lending institutions must be registered with either the Central Bank of Nigeria’s (CBN) registry or the National Information Technology Development Agency’s (NITDA) monitored business register.
The credit sector operates under a strict legal framework, which includes the regulation of even informal loans among friends. This helps prevent exploitation and makes it easier to identify attempts at fraud.
For a loan app to be authorized to provide credit, it must first receive approval. Before pursuing a loan request, it is essential, especially if you are unfamiliar with the brand, to confirm that the company is listed in the Nigerian registry of authorized financial institutions.
Abusive collection practices:
Fake loan apps have become a significant problem in Nigeria due to their aggressive tactics for collecting debts. These apps typically offer a loan in exchange for access to personal information and data on the phone, such as the contact list and financial information of individuals.
After granting the loan, often for a smaller amount than requested, representatives of the fake loan app demand payment with criminal interest rates within a few days via text messages and phone calls. This quickly escalates into a campaign of harassment and threats against the borrower and their family.
In some cases, these app representatives send fake messages to the contacts of people who have applied for loans, falsely accusing them of crimes such as pedophilia or prostitution. They even send threatening messages with pictures of severed bodies.
These actions, including fraud, defamation, and extortion, are all punishable offenses under Nigerian law and are indicative of a fake loan app.
Unavailability on Google Play Store:
While fraudulent loan apps are available on the Google Play Store, the majority of fake loan apps are only accessible through unofficial platforms. With 81% of Nigerian mobile users accessing their accounts through this platform, Google has had to tighten its filters to prevent further instances of fraud and has also removed several fraudulent applications from its store at the request of the FCCPC.
Sokoloan was one such app that was removed from the Play Store after Google received directives from the agency. Nairametrics has reported that the FCCPC has also requested the removal of Maxi Credit, Here4U, ChaCha, and SoftPay from the Play Store for unethical behaviour. Nigerians seeking loans without BVN are often the target of these illegal credit platforms that are not available on the Google Play Store.
Some notes when referring to the list of fake loan apps in Nigeria
Sure, here are some notes when referring to the list of fake loan apps in Nigeria:
+ Be aware of the list of fake loan apps in Nigeria to avoid becoming a victim of fraud.
+ The Nigerian government, through the FCCPC, has taken steps to remove fraudulent loan apps from the Google Play Store.
+ The list of fraudulent loan apps includes Sokoloan, Maxi Credit, Here4U, ChaCha, and SoftPay.
+ Nigerians seeking loans without BVN are more likely to fall victim to illegal credit platforms that are not available on the Google Play Store.
Above is the list of fake loan apps in Nigeria that you need to be aware of and avoid when borrowing money online. Infofinance.vn hope that this information can help you stay away from loan scams. If you need to borrow money through an app, always be selective and do your research thoroughly before deciding to borrow from any app. Only then can you avoid unnecessary risks and enjoy the benefits that borrowing money through apps can bring.