Nigerians who want to borrow money are still at risk from fake loan apps in 2024. These apps lure people in with the promise of easy money but then hit them with hidden fees, exorbitant interest rates, requests for advance fees, and even aggressive harassment tactics. The List of Fake Loan Apps in Nigeria is endless as new ones keep coming up.
The trouble is that it can be hard to tell the difference between a real lender and a fake one. Because new fake apps are being made all the time
In this post, we will provide you with the list of fake loan apps that have been blacklisted by the Federal Competition and Consumer Protection Commission (FCCPC) or the Central Bank of Nigeria (CBN) and some tools and warning signs to look out for to avoid falling prey into the new ones that have not found their way into the list yet but to know whether they are fake or not.
You can also see the Top 20 Best & Easiest Loan Apps In Nigeria (2024 CBN Approved)
List of Fake Illegal Loan Apps Blacklisted and Delisted By FG
As of September 2023, with the assistance of the Federal Competition & Consumer Protection Commission, the federal government delisted 37 more illegal loan applications.
The number of loan apps monitored on the commission’s watch list increased from 20 to 56.
FCCPC requested Google to remove any illegal applications running without regulatory approval from its Play Store or violating the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending, 2022 (Guidelines).
We present to you the list of 37 newly delisted loan apps below:
1. Swiftkash App
2. Hen Credit Loan App
3. Cash Door App
4. Joy Cash-Loan Up To 1,000,000 App
5. Eaglecash App
6. Luckyloan Personal Loan App
7. Getloan App
8. Easeloan Apps
9. Naira Naija
10. Cashlawn App
11. Easynaira App
12. Crediting App
13. Yoyi App
14. Nut Loan App
14. Cashpal App
15. Nairaeasy Gist Loan App
16. Camelloan App
17. Nairaloan App
18. Moneytreefinance Made Easy App
19. Cashme App
20. Secucash App
21. Creditbox App
22. Cashmama App
23. Crimson Credit App
24. Galaxy Credit App
25. Ease Cash App
26. Xcredit
27. Imoney
28. Naira Naija
29. Imoneyplus-Instant
30. Nairanaija-Instant
31. Nownowmoney
32. Naija Cash
33. Eagle Cash
34. Firstnell App
35. Flypay
36. Spark Credit
37. Luckyloan Personal Loan App
This list of fake loan apps isn’t exhaustive, and new fraudulent loan apps may keep appearing. The Nigerian government and regulatory organizations are aggressively striving to discover and remove these fake illegal apps, but remaining watchful and knowing how to spot these fake apps is what you should do and know.
List of Fake Illegal Loan Apps Previously Blacklisted by FCCPC Delisted By Google in August 2023
- Getloan
- Joy Cash
- Camelloan
- Cashlawn
- Nairaloan
- Eaglecash
- Moneytreefinance
- Made Easy
- Lucky Loan Personal Loan
- Cashme
- Easynaira
- Swiftcas
- Crediting
- Swiftkash
- Hen Credit loan
- Nut loan
- Cash door
- Cashpal
- Naira easy gist loan
How to Identify a Fake Loan App
There are basically some red flags to watch out for when you come across that loan app on which you are about to apply for a loan.
Let’s see some of these warning signs below:
Unrealistic Loan Offers: Be aware of apps that promise quick approval for large amounts without documentation.
Legitimate loan apps do extensive checks to ensure responsible lending.
You should watch out for when you see a loan app claiming approval in five minutes with an incredibly low-interest rate.
Poor App Quality: Fake lending apps frequently have poorly designed interfaces with typos and grammatical errors. Authentic apps are organized, and user experience is usually good.
Lack of Transparency: A reputable lender explicitly states loan terms and conditions, interest rates, and fees.
If this information is concealed or confusing, you should avoid the app, and fake loan apps are full of secrecy.
Request for Excessive Permissions: Be wary if a loan app wants access to non-essential functionalities such as your contact list or location.
Fake apps are usually eager to access your privacy; that way, they can harass you later when you default in payments, and your private information will be at risk of being breached.
Negative Reviews and Unverifiable Information: Check online reviews from the App Store or Play Store. You may see people who have used them before giving reviews. Avoid such loan applications if they have more negative reviews than positive ones.
Also check whether the loan company has a reliable website with contact information.
Inadequate Licensing and Registration
You should also watch out for the absence of the required license and registration.
Apps for legitimate loans must register with the applicable regulatory bodies, such as the Central Bank of Nigeria (CBN), and be regulated by the Federal Competition and Consumer Protection Commission (FCCPC).
An app may call for questioning if it withholds information regarding its registration or license.
Not Having a Proper Address: The lack of a physical address or other means of communication is another red flag.
Reputable lenders often have a physical location or a working email address.
A loan application may be fraudulent if it merely offers a virtual address or none at all.
Why Fake Loan Apps Thrive in Nigeria
Fake load applications are becoming rampant in Nigeria due to several reasons we shall be looking at below:
Financial Exclusion: Traditional banking channels are inaccessible to millions of Nigerians; even when they are available, the requirements for obtaining a loan from these banks are often difficult to meet.
Due to these banks’ restricted access to conventional loans, people fall prey to these fake loan apps because of their easy accessibility or promise of no collateral loans, which they often offer.
Urgent Need for Cash: Unexpected financial crises often impair judgment, causing people to snap up hasty loans without doing their homework.
Bank loans usually take days or weeks to obtain, but these loan companies usually offer same-day approval, so people tend to patronize them.
Lack of Awareness: Many borrowers know the warning signs indicating suspicious loan applications.
Scam loan apps are too eager to get you the loan, so look out for these red flags commonly associated with fake loan companies.
The Dangers of Using Fake Loan Apps in Nigeria
Exorbitant Interest Rates: fraudulent loan applications frequently entice users with what appear to be inexpensive upfront fees. But soon, additional costs and hidden fees drive the repayment amount to an unthinkable level.
Data Theft: These applications frequently ask for a disproportionate amount of personal data, such as contact lists and bank verification numbers (BVN).
This personal information may be used for other frauds or sold to unaffiliated third parties.
These fraudulent app companies may gain unauthorized access to your account when you give them access to their private information. Be careful of loan companies requesting so much private information from you.
Harassment and Threats: To collect repayments, fraudulent loan applications may use aggressive strategies such as public humiliation, threats, and constant calls, which can cause great emotional pain and may even lead to depression.
Alternatives to Fake Loan Apps in Nigeria
Microfinance Institutions (MFIs): Small loans are provided by microfinance organizations (MFIs) at set interest rates.
Savings and Credit Cooperatives (SACCOs): SACCOs offer their members financial services, such as loans, with reasonable conditions.
Peer-to-peer (P2P) lending platforms link lenders and borrowers and frequently provide competitive interest rates.
Approved Loan Apps: Several legitimate loan apps are registered with the FCCPC. Conduct thorough research to identify these reputable apps. You can find a list of registered authentic loan apps and MFBs on the website of the Central Bank of Nigeria (CBN)
Safe Loan Application Practices
Now that you know how to spot fraudulent loan applications, follow these important guidelines to protect yourself while applying for loans:
Borrow from Reputable Institutions: Take into account only lenders who are FCCPC-registered. Their registration is verified on the FCCPC website.
Read the fine print. Make sure you read and comprehend the terms and conditions of any offer before accepting it.
Examine the interest rate, length of the payback schedule, and any additional costs carefully.
Watch Out for Upfront Fees: Reputable lenders won’t usually demand payment in full before beginning to complete your loan application.
Borrow Within Your Capacity: Refrain from taking on more debt than you can repay. Make a reasonable spending plan and follow it. Only borrow what you know you can easily pay back.
FAQs – List of Fake Loan Apps in Nigeria (2024)
What are the latest banned loan apps?
The Nigerian federal government’s last ban on fake loan apps happened in September 2023, when 37 were delisted and banned.
Can the loan app access my contacts if uninstalled?
Uninstalling an app disables its ability to communicate with your phone’s features. This includes accessing things such as contacts. However, if the loan services already saved your contact information, deleting them will no longer be effective.
Which app is legitimate for borrowing money in Nigeria?
Recommended apps that are legitimate and approved by the CBN are numerous, and popular ones include Branch, Okash, Carbon, RenMoney, and FairMoney, amongst others.
Which loan app is owned by Opay?
Opay owns Okash
Can someone borrow money from Opay?
Yes, you can borrow money from Opay.
Conclusion
The proliferation of mobile lending applications has surely changed access to loans in Nigeria. However, with this ease comes the risk of fraudulent lending applications that abuse borrowers.
With the list of fake loan apps in Nigeria (2024) presented above, you can be sure to know which loan apps you should avoid.
Don’t be pushed into making hasty judgments. Conduct extensive research, confirm loan validity, and choose licensed lenders with clear terms and conditions.
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