REASONS WHY NIGERIANS SHOULD AVOID LOAN APPS
With a dwindling economy and the continue devaluation of the Nigeria currency.
And an increasing number of unemployment rate in the country.
Lots of Nigerians are finding it very difficult to provide for their basic needs and commodities.
This has given birth to the increasing level of Nigrrian citizens looking for where they can borrow money to take care of their various needs.
Now with lots of banks in Nigeria not being willing to give Nigerians such loan not without a collateral or providing a guarantor.
This has now brought about so many companies who come in the name that they are helping Nigerians by giving the loan in just 5 minutes.
Just by filling in a little bit form and providing some personal details about your self and your bank account.
In no time the loan would become yours.
- No need for doing so many paper work
- Or providing a worthy guarantor
- Bringing in collateral
- Easy and less stressful.
Is there any Nigerian who wont love such an idea.
I guess No.
These has lead to to the every day advent of companies who lend people for them to pay back in some weeks.
Even though we Nigerians think that this Fintech companies are blessing in disguise to us.
I personally think this loan company are bringing more poverty on the lives of citizens of Nigerians, who are ranked as the top most poorest citizens in the world.
As lots of Nigerians can’t boast of 1 Dollar a day for feeding.
One of the reasons i say so, is because of the large interest rate which most of this loan companies come with.
They come with an interest rate of over 50% increase which thay have to pay in a little estimated amount of time, which might just be for few weeks only.
On this article i am going to giving us few reasons why i think EVERY NIGERIAN SHOULD AVOID LOAN APPS
HIGH INTEREST RATE (AVOID LOAN APPS
One of the reasons you should avoid most loan apps as a Nigeria is because of their high interest rate.
The interest rate on all these loan are way above that of most Banks in Nigeria, which interest rate is calculated per annum (yearly) with just 9% too 13% interest.
But in the case of most loan app thier own interest rate is calculated weekly with 11% too 13% increase.
These are people who claime they actually out to help poor Nigerian citizen by borrowing them money with a very high interest rate.
You Borrow 10 Thousand Naira (10.000) in space of 3 weeks you are been asked to 13 thousand Niara (13.000).
Now you tell me how someone who could not affor 10.000 afford 13.000 in the space of 3 weeka given to him or her.
THEY WOULD HAVE YOUR BVN
BVN is your Financial ID, which only you and your bank should have and know. If another person knows your BVN number.
It can be used to access to your financial history or even worst be used to commit fraud.
Now when you are feeling in your details on the LOAN app you would be asked to provide your BVN.
Which they claime is used to know the amount of money which you are eligible to be borrowed.
It is very bad for them to have your BVN in their possession because they can use to cause harm to you, by using it to commit fraud.
Which might lead to Central Bank Of Nigeria blacklisting it.
And if that is done you wont be able to perform any money transaction until the issue is resolved.
ACEESS TO YOUR MOBILE PHONE
This happen to someone i know, where by his phone was locked and he could not access it untill he paid off his loan.
Which is very wrong, as they are infringing into the personal lives of the app users, without the knowledge of the person
And most people don’t know about this untill you are unable to pay up your loan.
These apps have access to your contacts, text messages, call logs and so much more.
Which you have knowing or unknowing allowed them access too on your mobile phone app settings.
SHAME, HUMILIATION AND INTIMIDATION
Most of this Lending loan app can go any miles just to make sure they recover their borrowed money from you.
Even with tangible reason or not, they most time do not care as they go telling all the contact on your phone that you borrowed money from them, or even worst.
That you ran away with the companies money.
Which brings lots of shame upon an individual as they start getting calls from family, friends telling them about the text message they got from the loan company.
Which can be really humiliating.
They would also intimidate you by sending lots of threats about reporting to crime fighting commission, that would track you down and arrest you.
With every single minute of the day, you receiving calls from them which is nothing but harassment.
ADDICTION & NOT BEING ABLE TO MAINTAIN SAVING CULTURE
Being able to access loan from fintech company any time any where can be very addictive which is very bad for one’s saving culture.
As you won’t have any savings to you name as all your earnings would be going back to them. In other to pay off your loans.
I Personally think, you should find other means of getting money for your needs.
don’t make borrowing from this loan companies an option.
Because it is not worth the stress, trauma and financial problems they would put you through.