How To Avoid Loan Sharks in Nigeria

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Hey there! Are you searching for ways to avoid loan sharks in Nigeria? If yes, then this article is for you. In this article, we will provide you with tips on how to avoid loan sharks in Nigeria.

Meanwhile, getting a loan as a Nigerian isn’t a bad idea, but applying for a loan from loan shark companies isn’t.

How to Avoid Loan Sharks in Nigeria

This is because these companies give you instant loans and make use of illegal or unprofessional means to get you to pay them back.

One of these unprofessional means is sending unsolicited messages to the borrower, their families, and friends.

They do this in a bid to frustrate these individuals to repay the loans. Hence, it is advisable to avoid loan shark companies entirely.

Who is a Loan Shark?

A loan shark is a money lending company or individual that provides loan amounts with high interest.

These companies have a ruthless way of collecting the money if the borrower fails to pay it back, and these methods are carried out outside the law.

How to Avoid Loan Sharks in Nigeria

In this section, I will be sharing with you some tips that you can use to avoid loan sharks in Nigeria.

If you are interested and would like to find out, read this article till the end.

  1. Carry out research on the lender.
  2. Check out the interest rates.
  3. Report dubious activities.
  4. Look for professional advice.
  5. Make sure you read the terms and conditions.
  6. Check the upfront fees.
  7. Make use of reputable money lenders.
  8. Do not agree with unrequested offers.
  9. Abstain from high-pressure strategies.
  10. Avoid sharing sensitive details and information.

1 Carry out Research on Lenders

Before borrowing money from any lender, both online and offline, you need to make sure that you research the lender before you proceed to apply. What’s more, find out if they have a physical office, contact information, and an authentic website.

2 Check Out the Interest Rates

Another way to avoid loan sharks in Nigeria is by checking out the interest rates. This is because loan sharks charge high-interest rates. So, make sure you compare the interest rates provided by any lender before applying.

3 Report Dubious Activities

Report dubious activities if you come across a money lender that is acting suspiciously. There are financial regulatory agencies, and the local police are open and available for you to report these suspicious loan sharks.

4 Look for Professional Advice

Another effective way to avoid loan sharks in Nigeria is by seeking or asking for professional advice. So, if you are having doubts about a particular lender, ask for advice from a financial advisor or a credit counseling company.

5 Make Sure You Read the Terms and Conditions

Checking and reading through the terms and conditions offered to you by loan lenders should be done thoroughly before you agree. What’s more, make sure you look at the repayment terms, hidden fees, and interest rates.

6 Check the Upfront Fees

Legal online money lenders do not request upfront fees before they approve a loan. So, if you are trying to apply for a loan and you are asked to provide an upfront fee, it is very likely that it is not legit and is a scam.

7 Make use of Reputable Money Lenders

One of the best ways to avoid falling victim to loan sharks in Nigeria is by using reputable lenders. In other words, if you need money, borrow from licensed banks, online lenders, credit unions, or financial institutions with the right authorities.

8 Do not Agree with Unrequested Offers

Any unsolicited offers made to you should be avoided, as this is one of the methods loan sharks use to find people. So, be very careful about loan offers made through text messages, emails, or even phone calls.

9 Abstain From High-Pressure Strategies

A loan shark or fraudster might use high-pressure strategies and methods to force you to take a loan. But for a legit lender, you will be asked to review and read the terms and make a suitable decision. In other words, if you are being pressured into taking out a loan from a company, it is probably a scam.

10 Avoid Sharing Sensitive Details and Information

Avoid sharing your sensitive details and information with any lender unless you have done your research and are sure that they are legit. A lot of loan sharks ask for your personal information to steal your identity.

Popular Loan Sharks Companies In Nigeria To Avoid

Here are some of the popular and well-known loan sharks in Nigeria that many are not aware of. Below is the list:

  • EasyCredit.
  • GoCash.
  • Ease Cash.
  • 9Credit.
  • Okash.
  • iCredit.
  • Sokoloan.
  • NCash.
  • LCredit.
  • KashKash.

How to Spot Loan Sharks in Nigeria

If you have never fallen victim to loan sharks, you are lucky. Now, if you want to find out how to spot a loan shark, this guide will help you find one within a few minutes:

  • Unclear terms and conditions
  • Unrequested offers.
  • No credit checks
  • Absence of documentation.
  • Accessing loans with blackmail and threats.
  • No registration or license
  • BVN submission.
  • Demanding and challenging sales methods.
  • High-interest rates.
  • Irrational and illogical fees and penalties
  • Lack of physical address.
  • Unofficial and unapproved access

With these tips, you can be able to spot a loan shark from afar and avoid them at all costs.