Exposing the Top Bad Loan Apps and Lenders in Nigeria to Avoid

1. Unregulated Lenders: One of the most significant red flags when it comes to loan apps and lenders is their lack of proper regulation. Some lenders operate outside the purview of regulatory bodies, taking advantage of gaps in oversight. It is crucial to do thorough research and ensure that the lender you choose is registered and licensed by relevant authorities such as the Central Bank of Nigeria (CBN).
2. Excessive Interest Rates and Hidden Fees: Some loan apps and lenders in Nigeria are notorious for charging exorbitant interest rates and hidden fees. These predatory practices can quickly trap borrowers in a cycle of debt, making it difficult to repay the loans. Before accepting any loan offer, carefully review the interest rates, repayment terms, and any additional fees to ensure transparency and affordability.
3. Aggressive Debt Collection Tactics: Certain loan apps and lenders resort to aggressive and unethical debt collection tactics. They may employ harassment techniques such as constant phone calls, threatening messages, or disclosing personal information to coerce borrowers into repaying their loans. Avoid lenders that employ such tactics, as they not only violate ethical boundaries but also cause unnecessary stress and anxiety.
4. Lack of Transparent Terms and Conditions: Reputable lenders prioritize transparency and provide clear terms and conditions to borrowers. However, some loan apps and lenders in Nigeria may hide crucial information or use complex language in their agreements. It is essential to carefully read and understand the terms and conditions, ensuring that they align with your expectations and that there are no hidden clauses or unfair terms.
5. Poor Customer Service and Support: Another warning sign of a bad loan app or lender is poor customer service and support. Legitimate lenders value their customers and provide timely assistance when needed. If you encounter a lender that is unresponsive, unhelpful, or dismissive of your concerns, it is a clear indication that they may not have your best interests at heart.
6. Negative User Reviews and Ratings: Before engaging with any loan app or lender, take the time to research user reviews and ratings. Pay attention to feedback from previous borrowers, as it can offer valuable insights into their experiences. If a lender has a significant number of negative reviews or numerous complaints about unfair practices, it is wise to avoid them altogether.

Below is the mobile loan app you should avoid. Meanwhile, I am going to explain why you should avoid them because they will only frustrate you sooner or later.

1.Sokoloan

Sokoloan is a common name in the Nigerian online lending space. However, it is one of the loan companies that should be avoided by wary Nigerian borrowers at all costs. One of the red flags about Sokoloan is hiding under different loan apps to perpetrate its exploitative lending scheme. This puts borrowers in the risk of falling into the hands of Sokoloan again and again, without even knowing that they are still dealing with Sokoloan.

All of the loan apps controlled by Sokoloan operate in deceptive and exploitative ways. If you’re using a loan app where you seem to experience the sort of extortion you experienced while using Sokoloan, it is very likely that you’re still using Sokoloan.

There’s no doubt that Sokoloan is well known, and that you’ll find user reviews claiming that Sokoloan is a favourable or good loan app to use. The reason for such “positive” reviews is that Sokoloan is said to have paid some people to deceptively portray the loan company in good light.

If you’re serious about doing away with Sokoloan, you should be ready to make your findings about a newly found loan app before applying to it for loans. Through such findings, you’ll easily learn about the features/offerings of that loan app as well as the honest user reviews available for it. If users of the app claim to have had the same unworthy experience that you had while using Sokoloan, this is likely a hint that the newly found loan app might be another Sokoloan in disguise.

Sokoloan is also said to be guilty of embarrassing loan defaulters by composing derogatory messages and sending them to the contacts of the loan defaulters. This is undoubtedly one of the practices by terrible loan apps in Nigeria. A good number of Sokoloan users have reported being defamed by Sokoloan following their failure to repay loans on due dates. We’ve seen a whole lot of messages in which Sokoloan describes specific loan defaulters as criminals under police investigation for having run away with company’s money.

Sokoloan reveals the name and the phone number of a given loan defaulter along with a derogatory claim such as the earlier-stated one.

How come a company created a different loan app instead of improving only one, who told them that Carbon achieved great success and now becomes the best in Nigeria by creating multiple loan app. The reason is simple if you have an issue with one of the apps you will still end up using their other app unknowingly.

Sokoloan and its affiliates are there for real business and they don’t care who bears the pain or who you are, their interest and customer support is like a death trap. When you go to Google play store, they have good rating and reviews because they paid foreigners to give them 5 stars and most times they force their users to give them a 5-star rating to increase their chance of approving their loan.

I will not be able to explain what all these loan providers are doing one after the other but anyone that you see on the list below should be avoided. Most of them even belong to the same loan company (Sokoloan) while some don’t but they are terrible to do business with.

Example Of Sokoloan Embarrassment Message:

“This is to inform the general public that (name)(phone number) is a chronic debtor on the run with company money. Consequently, it is advised to stay away from him until he is arrested.”

“Suspected criminal by name(xxxx) with phone number (xxxx) carted away with company’s money and the police are out searching. Please notify us if found, or contact any of the family members please.”

2. 9Credit

Never try this loan app if you love yourself and your reputation because they don’t mind sending messages to all your phone contacts telling them that you are owing them and even tag you thief and fraudster even if it’s N3000.

However, they are very greedy their interest rate is very bad, imagine offering you N4000 to pay N6,500 in 7 days but if you have to don’t even miss a second in repaying the loan or you will have yourself to blame.

3.CashExpress

CashExpress is another terrible loan app operating in Nigeria. Just like Sokoloan and HelaCash, CashExpress has been condemned not only for misleading customers, but also for operating in an abysmal manner. Ranging from customer service down to loan disbursement, several things about CashExpress are bad. As regards loan disbursement, some users have labeled CashExpress a scam for disbursing loans without the customers’ approval. A particular customer claimed that after signing up for CashExpress, they received a loan disbursement that they never applied for.

Also, users of CashExpress claimed that after sending loans without customers’ approval, CashExpress issues threatening messages whenever customers complain about receiving loans that they never applied for. A particular user claimed that after complaining in this regard, CashExpress didn’t admit any irregularity or error; the loan app instead threatened them to repay the actual loan amount as well as the associated interest.

There are multiple claims by customers of CashExpress about receiving loans that they never applied for. Another user of the loan app claimed that they stumbled upon an advert about CashExpress, and clicked on the advert to find out about the loan app. This user however admitted that despite not applying for any loan at that instance, CashExpress sent them a loan.

With regard to the customer service of CashExpress, a particular customer mentioned the name of a CashExpress’ customer representative, and accused the representative of designing a picture of the customer, tagging the customer a fraudster, and sending embarrassing messages to the customer’s contacts. This same customer claimed that the CashExpress representative failed to inform them (about the loan) before sending the embarrassing messages.

4. NairaPlus

I don’t see much difference in all these mobile loan apps, they are just there to add to your problem not actually to help you because their interest rate is not favourable at all and their loan duration is equally bad. Don’t use your hand and put yourself into trouble or you will learn the hard way.

5. Go cash loan app

Go cash is another bad loan app you should avoid by all means if you care about your reputation and it’s equally a bad alternative because their interest rate and loan duration are like a scam to me.

All these loan providers are too greedy and should be avoided because they are not actually helping you but worsening your problem. Run from any loan that doesn’t offer at least 15-30 days with a fair interest rate.

6. 9jaCash

I don’t even know what to say, they are just there same doing the same thing to helpless Nigerians that needed urgent money to take care of one or two things. Their interest and loan duration is not favourable.

They all use the trick that you should build a good loan credit before you can enjoy a good interest and longer loan terms but even after using them 10 times you will still be where you are. Avoid them and look for a better option

7. LionCash

No matter how urgently you need money avoid LionCash, they can threaten you even before the loan duration, they are rude and mannerless, the worst is that their interest and loan terms are not favourable at all and yet their customer’s service is very unprofessional to deal with.

Don’t say had I known at last because when you are desperate to get the money you don’t even think about the implications until later. Moreover, I am not only asking you to avoid all these loan apps because of their unprofessional treatment towards their customers but because their loan offers and duration are death traps and not actually a solution to your problems.

8. GMoney loan app

GMoney mobile loan app can be used to borrow money when you are in trouble but try as much as you can to avoid them because their interest and loan duration is not in your favour. They are greedy and ready to threaten you at anytime

If you must borrow from any of the apps I listed above then make sure you map out a solid repayment plan because they are not considerate and not ready to hear whatever you have to say unless you want then to tell all your family and friends in your contacts that you are owing them. They can even tag you as a thief and fraudster.

9. Fast Money loan app

Fast money is not different or better from other bad loan apps listed, and if you use them then be ready to face one issue or the other, the worst is that their loan interest and duration are very bad and should be avoided.

No loan provider has the right to threaten their customers and send abusive text messages to all their phone contacts but it seems they don’t care about anything but ready to go any length even to hurt you to recover their money so be ready for what is coming next if you don’t stay clear from all these unprofessional lenders that can frustrate your life.

10. ICoin loan

ICoin is not that bad, but their mode of operation is terrible, I don’t know if you are the type that can borrow a loan without any intention of paying back, never try that with any loan provider whether good or bad ones because it’s awful and can put you into trouble.

However, I understand that you might face unexpected challenges that might force you to default from the loan you borrowed. Putting that into account I suggest you don’t try using Icoin as an alternative for a quick loan because you will be paying up to 1000 for every day you failed to pay your loan and it’s not negotiable you must pay it afterwards. They don’t consider any circumstances but their money.

11. Getcash loan app

Get cash mobile loan app should be avoided by all means because they are one of those loan apps that doesn’t care about your previous performance using their services but any little mistake they will threaten and send text messages to your contacts and tell them that you are owing them.

Apart from that their interest and loan duration air very bad and not in your favour as a borrower. Avoid them if you want to have peace of mind. Your reputation worth millions so avoid them and don’t allow any loan app to destroy your image for whatever reason.

12. HelaCash

HelaCash is one of the loan apps that seem to have attracted lots of negative reviews. It has been found among the loan “sharks” that commonly lure in unsuspecting borrowers by dishing out fake promises to them. Negative user reviews, especially when they far outweigh the positive user reviews, constitute the yardsticks for assessing the legitimacy or reliability of a loan (app) company. With HelaCash having failed in this regard, it suffices to list it among the loan apps Nigerian borrowers should avoid at all costs.

Perusing a number of customer reviews about HelaCash, we found that the operation of the loan app is fraught with irregularities including delay in updating repaid loans, wrong loan disbursements, and deduction of interests prior to loan disbursements. In the case of wrong loan disbursements, for instance, some individuals faulted HelaCash for sending them loans they never applied for.

One of HelaCash’s worst downsides, and which is probably the commonest drawback of unworthy loan apps, is high interest rates. Not only has HelaCash been faulted for attaching extortionate interests to its loans, the loan app is also disliked for setting relatively short repayment periods, and for its delay in increasing customers’ loan limits.

Delay in increasing customers’ loan limits is a disturbing drawback because it is probably the opposite of what HelaCash claims to offer. A particular user claimed that HelaCash parades itself as a provider of higher loan limits in order to lure in customers. The user added that after HelaCash has succeeded in this regard, i.e. by getting the customers to “pay”, the loan app begins to falter, and it becomes difficult for the customers to use.

Another user labeled HelaCash a scam, and backed up the claim by saying that the loan app doesn’t eventually send customers the loan amounts that were initially agreed upon. In other words, HelaCash disburses a loan amount lower than the agreed amounts. This is unfortunate because during loan repayment, customers might have to pay more than the amounts they are supposed to pay. This same user also condemned HelaCash for having extremely poor customer service.

I will stop the list here but there are more than 50 bad loan apps presently in the Google play store. I know how desperate you might be when you need some help but has no one that can help except getting some quick loan from these companies. However, try as much as you can to avoid the bad ones or you will regret it later.

Beware of scam loan apps that don’t offer loan at all

I have seen many scam loan apps that don’t offer a loan but will charge you between 1000 – 5000 as a service charge with the promise of giving you between 50,000 – 500,000 with a 1% interest rate. They are fraudsters that don’t offer a loan but refer you to other loan providers after registration. You also risk your money when you provide your ATM details to them.

Please never try them or you will cry at last because the little money you have in your account will be wiped out gradually.

Even Google can no longer help differentiate between good and bad mobile apps. However, the options google uses to differentiate between good and bad app from their play store is through users rating and reviews but trust me that method has been defeated by fraudsters with evil intentions

Facebook on the other side is the worst, they don’t actually care about who you are or what you do as long as you have few $$ to spend on their adverts

Best mobile loan providers so far in Nigeria

While listing the bad loan app, I guess it will be helpful to list then best loan providers in Nigeria that will give you peace of mind but you must remain faithful to them to enjoy the best loan offer without any paperwork.

You can enjoy a longer loan duration and the lowest interest rate you can ever get in Nigeria. They are designed to truly help you when it matters most and they are not greedy compared to the ones I listed above.

1. Carban loan: Carbon is incomparable and currently the best in Nigeria, however, getting approved might not be easy but once you succeed you will know why they are the best.

2. Branch loan: branch is also a loan provider you should stick with, they are one of the trusted and best loan provider in Nigeria. As they say, nothing good comes easy just pray to be approved and you will enjoy the lowest interest rate and longer loan duration.

Other good loan apps are:

• Fairmoney.
• Aella Credit
• Migo. money
• Quick Check
• OKash
• New credit
• KashKash
• MoneyPal

Conclusion:

While there are reputable and trustworthy loan apps and lenders in Nigeria, it is crucial to be cautious and aware of the risks associated with some platforms. Avoid falling into the trap of bad loan apps and lenders by researching their credibility, examining interest rates and fees, understanding the terms and conditions, and paying attention to customer feedback. By making informed decisions and exercising due diligence, you can safeguard yourself from potential scams, unfair practices, and financial pitfalls. Remember, your financial well-being is of utmost importance, and choosing the right lender can make a significant difference in your borrowing experience