10 facts about Nigerian loan apps you should know before taking an online loan

More people are taking online loans than you probably imagined. with the harsh economic realities in the country, these loan apps provide quick loans without asking for collateral and minimal documentation.

but also a lot of the ugly stories you might have heard about them is most likely true. Some of them often deploy less than civilized tactics to recover their loans, most loan apps charge ridiculously high interest rate for a short period of time and virtually all of them are not registered or regulated.

Here are some answers to questions you might have regarding loan apps in Nigeria.

Can a loan app block my BVN?

Biometric Verification Number BVN is a unique 11 digit number that identifies every Nigerian as the interact with the country’s financial infrastructure. The number is given and controlled by the CBN in association with licensed commercial banks.

So can a loan app block your BVN for not repaying your loan? technically the answer is no. Only the CBN can blacklist your BVN in cases were you seriously violated the country’s laws. Loan apps however can block your BVN on their app and even prevent you from getting loans from other loan apps.

A loan app cannot ‘BLOCK’ your BVN, they can only prevent you from getting further loans from their platform or getting loans from other loan app.

What happens if I cant repay my online loans?

Even before your due date you will start getting persistent calls and SMS from the loan company. After your due date they will start adding late fees to your balance. Then the loan company will try to auto debit the ATM card you have linked to your profile.

when all these fails, some online loan apps in Nigeria are notorious for sending derogatory messages to the contacts of their defaulters. others like Branch, Carbon and FairMoney will pass your contact to a loan recovery company that will call you persistently until you repay the loan.

Can I go to Jail for not paying online loans?

No you cannot go to jail for defaulting on your loan repayment. The loan company want their money, and when you’re in jail, the you definitely cant repay. Tho some loan sharks have been known to threaten their customers with lawyers and jail term, they cannot send anyone to prison.

Why do loan apps ask for BVN?

Your BVN is your unique identifier linked to every transaction you perform in Nigeria. Because every Nigerian only has one it makes it easier for the loan apps to identify loan defaulters and deny them loans.

Are loan apps legal in Nigeria?

Some loan apps are legally registered and regulated by the CBN as microfinance institutions. But majority of the online loan apps that operate in Nigeria are illegal and unregistered. See this list of CBN approved loan apps in Nigeria.

How do I block an online loan app?

You probably want to prevent the loan app from removing money from your bank account without your consent. After binding your ATM card to your profile, the only way to prevent this is to block and deactivate the ATM card. You can do this through your banks app or simply going to your bank to block your card and request a new one.

Changing your card password does not stop auto debit.

Can loan apps access my contacts even after uninstall?

Yes the still have your contacts, you grant them access to your contacts when you first download the app and most loan apps make a copy of your contacts immediately.

You can still prevent defamation by deleting your WhatsApp picture or limiting access to it to only your saved contacts by changing your privacy settings.

Most loan apps that defame people usually get their pictures from the WhatsApp profile.

Which loan app has the lowest interest rate in Nigeria?

Branch, Carbon, Kuda and commercial bank’s apps have low interest rates. The interest rate on loan apps is not uniform, it is influenced by factors such as credit score and repayment history of each individual borrower.

If you have further questions related to loan apps in Nigeria, leave it in the comment section below and check back on this webpage for updates.

I did not request a loan, yet money was disbursed to my bank account. what should I do?

Sometimes loan apps do disburse money into a customer’s bank account who did not request one, or a customer might fill out the form and later change their minds due to the high-interest rate or small repayment tenure, yet money will be disbursed into their accounts.
If you are experiencing something similar, immediately deposit back the principal amount that was sent to your bank account to avoid paying interest on it later.

I mistakenly overpaid more than I borrowed from a loan app, what should I do?

Maybe you’re supposed to pay back N12,000, but you mistakenly sent N120,000 to the loan app’s account. In such a situation, you should request another loan in the amount that you overpaid. That is N108,000 in this example. It is usually difficult to get reimbursements in such cases, which is why you should be very careful and double-check before confirming any transaction.

I repaid my loan, but the loan app did not increase my loan amount?

It is standard practice that most loan apps increase the loan amount for their customers when they repay on time, but they are not under any obligation to do so. There are a few reasons why a loan app might not increase your loan amount even after repaying on time;

Their loan limit: Most loan apps have a loan limit which they cannot borrow you above that amount. for example, if the loan limit on an app is 50k, they will not increase your amount even after you repaid your previous 50k on time.
Availability of funds: loan apps have certain amounts they have programmed their computers to borrow customers, the system might limit your loan amount if their are plenty borrowers also applying. So your loan amount might not increase through no fault of yours.
Loan history with other lenders: Your loan amount might not increase if you have outstanding loan with other lenders or you refused to pay other lenders on time. your general loan history can affect your loan amount because loan apps want to do everything to be sure that you will pay them back in time.

How do I report a Nigerian loan app?

Most of the online loan apps that operate in Nigeria do so without licenses or regulation from any government agencies. In cases of serious rights violations, you can, however, file a complaint with the Federal Competition & Consumer Protection Commission. They are the government agency for customer rights protection in Nigeria and they have been known to take down erring loan apps in the past.

which is the best and safest loan app in Nigeria?

Loan apps like Carbon and bank apps are the best because they offer safe and reliable online loan services in Nigeria. Other legit and CBN-licensed online loan apps can be found on this list.

are there loan apps in Nigeria that give loan without BVN?

No online loan app will give a loan without BVN. Your 11 digit BVN is your unique identifier used by financial service providers to identify their customers. They use the BVN to check a customers credit report – how early they repay their loans when given and if they have any outstanding loans they are yet to repay. The BVN is an extremely important KYC document requested by all loan apps before giving a loan.

Are there loan apps in Nigeria that give loan without binding ATM card?

Okash loan app from Opay gives customers loans without binding card. Most loan apps do however require card binding as a means of repayment and so they can autodebit the card when the tenor is due. You can prevent autdebit on your card by going to the bank to have the ATM card blocked. Card blocking can also be done online.

how do I stop loan apps from calling my contacts?

Most loan sharks call their customer’s contacts to intimidate them into repaying their loans. The way to stop a loan app from calling your contacts is to repay your loan on time before you default or you delete all your important contacts before installing the app on your phone.

can loan apps access my bank account to withdraw money?

No, they can only access the ATM card you bind to your account during registration. Most loan apps will remove their money from your account on or before your deadline day. To prevent this, you can block your ATM card and request a new one from your bank.

how to stop gsi recovery from loan apps?

Global Standing Instruction GSI is a tool initiated by the CBN to help creditors recover their loans from debtors without notifying the debtors. It means creditors can take money from any account linked with their debtor even from accounts in other banks. Loan apps in Nigeria cannot use GSI recovery to recover their loans because most of them are not registered with the CBN. GSI recovery mandate can only be issued by the CBN.

From which loan app in Nigeria can I borrow up to 100k?

Most Nigerian loan apps are unlikely to borrow you up to 100k at first application. You can however build your credit score by repaying your loan on time. Most loan apps offer revolving loans which increase every time you repay your previous loans.

Which loan app in Nigeria has a long repayment period?

Online loan apps are designed to provide quick cash for emergency use only. Most online loan apps have a loan repayment of between 7 to 30 days. If you want a loan with longer repayment term, consider taking a business loan from your commercial bank.


A writer! Columnist and an academic researcher


  1. I want to know if lcredit,Fairmoney and migo are registered in Nigeria

    1. Registered or not doesn’t really matter, they can all report you to credit bureaus to blacklist your BVN if you default on your loan repayment.
      Fairmoney and Migo don’t defame their customers. They are more professional unlike Lcredit that will defame you and send messages to your contacts.

      1. I requested for a loan from OXLOAN on Saturday 6th August 2022 but no money was sent to my account( I did not receive the money) but the APP is showing DISBURSED.
        I’ve attached my Statement of Account showing that the said Loan money did not enter my account. I have sent them WhatsApp Chats with my Bank showing that the money reversed back to them but they are still harassing me for repayment.
        I have sent all these evidences to their email address support@oxloan, their WhatsApp numbers, their online customer service and their Google Play Store reviews yet they don’t want to fix it rather they are calling, messaging me for repayment.
        What next should I do pls

  2. i took loan and i wanted to pay back but my phone was stolen along side my alert sim in which i used in registering for the app. i have not been able to get my line back. i have no other way to communicate with them. i tried sending mail but most of them do not have website. what should i do. my account has been freezed and i need to contact them and reach an agreement with them.

    1. Simply do a welcome back on your sim card. Or call their customer service number they will be able to dig up your records with your phone number and BVN.

        1. Most of these online loan apps are loan sharks that give high risk loans and charge high interest. If you want regulated loans you have to go through your banks and meet the necessary requirements.

          1. Please help me.
            When I wanted to borrow, I deactivated my Gmail acct where my contacts are. I borrowed with the acct where I just have random contacts. I dropped my real line as an alternative num and they have been threatening me on the whatsapp line. I hope they can’t have access to the contacts on the alternative whatsapp line.
            Note that when I wanted to borrow, those contacts were not on my phone. I just got them back .pls help.

          2. No, they won’t have access to your contacts as long as you deleted the app before restoring your contacts on your phone.

  3. Can a loan app report a defaulter to NIBSS and issue Global Standing Instruction(GSI), to recover their loan???

    1. No, most online loan apps are loan sharks that are not registered or regulated. The highest they can do is to report you to a credit bureau and stop you from getting further loans or affect you if you deal with anyone that runs a financial background check on you.

      1. Sir please I want to confirm if loan company like palmcredit can freeze your account until they recover all their money.

          1. But pls after blocking my ATM, if am been reported to credit bureau can I still have access to my account

        1. Yes Kuda can blacklist your BVN from accessing loans, but you can still borrow from loan sharks that charge high interest rates and use intimidation to get their monies back.

    1. No, they cannot. Most of them are unregistered loan sharks anyways. The worse they can do is to blacklist your BVN from getting loans again. And only few of them can do that.

        1. Yes, apps like Fairmoney, Branch and Carbon can report your BVN to credit bureaus which will show that you have outstanding loans on your credit report.

  4. What if when you signed up on the loan app and they didn’t request for selfie, can they get your photo using your bvn?

  5. please i was debit 3,925,60 2times on the 23d of June and one of the agent told me that they will reverse it back after seven working days since then have not been credited back. what should i do

      1. How long can a loan app continue to add interest on one’s loan untill the debt is eventually paid back?

        1. There is no limit, but most loan apps usually get tired and after a few months they usually will make you an offer to just repay the principal while they cancel all the interest. They will remove you from the blacklist but will ban you from getting further loans on their platform.

          1. Is it possible for sokoloan to report me to my bank and if I never paid my loan and it will affect me to get another ATM card or for Bank people to recognize me as a deptor?

    1. No, they cannot come to your house to demand repayment. The highest they can do is to report your BVN and stop you from getting further loans from other loan apps.

    2. After calls,messages,and threatening you many times can they ever forget the loan given to you??

    1. How can I contact palm credit to remove my bvn or name from credit bureau after paying my overdue loan.

    1. No they cannot, the only thing they can do is to continue calling you and block your BVN from accessing further loans from other lenders.

  6. I have 3 questions
    1.if you deny their permission on your phone will they still have access to your contacts and all

    2.if you later pay them will they credit bureau grant you access to other loans in the future and will they let them know you have paid.
    Like will they notify them to

    3.will oweing them affect you from traveling out of the country

    1. 1. You can’t really deny them access to your contacts, you have to grant access to your contacts before they give you any loan. You can however give them fake contacts by changing or editing the numbers on your phone.

      2. If you repay, the credit bureaus will update your details, but some loan apps can still deny you loans due to your history. Credit bureaus automatically update records once you pay.

      3. Some embassies might run a financial background check on you to see if you have the money to support yourself when you travel. It depends on the country and reason why you are traveling.

          1. What if after i grant access to my fake contacts and after logging out of the app, I add my real contacts. Will it still be possible they access my contacts.

  7. If I take a loan and fail to pay back and then my BVN expires and I re enrol and update it. Will the loan apps still have my details and be able to reach me.

    1. BVN doesn’t expire, you can change minor details like name, address and phone number, but your BVN remains the same once your fingerprints have been captured.

  8. I pay d sum of 67800 nd for me too request for another loan
    They show me 57200
    Which Dey didn’t increase my loan anymore

      1. Please can FCMB access my other bank accounts to get thy outstanding loan or block my BVN?

          1. So the likes of FCMB payday loan can’t access UBA account to recover outstanding loan?

          2. No, regulated banks can’t just take money out of your other bank account to cover their loans. They have to wait until you fund your account with them.

      1. iIs it all loan apps that copy and store ones contacts?And why are they not afraid of defaming people when they know it’s against the law?

        1. Most loan apps copy your contacts the moment you install them before they approve your loan. They are not afraid because they are unregistered loan sharks that cannot be tracked, most of them don’t even have any offices you can track them to.

  9. Can loan app I couldn’t make it to pay them arrest your friend in your contact and stop her from traveling out of Nigeria?

  10. I.borow loan from cashsea loan app, for 7day I told them I will pay back month end, them sending messages to my contact, now them my BVN, date of birth and phone number to. all my contact,

  11. Can online loan shark prevent me from getting loan from banks or microfinance banks?

    1. Some of them that are registered with credit bureaus can. You should check your credit score with the credit bureaus to see which loan app have reported your loan default.

  12. Can a loan app report you to GSI for not paying your loan like newcredit or xcrosscash

  13. Good morning sir…Can Renmoney visit ur house if you don’t pay your loan back ? And what they can do? Thank you

  14. Good afternoon Sir…. please If you don’t install loans app on your phone like Renmoney loan app but someone using your number with another phone they still have your contacts?

      1. Sorry for the question sir… When someone apply loans on Renmoney website not application but with your number on another phone they can have your contacts list ?

    1. loan apps cannot do anything to your bank account unless you bind your atm card then they can only auto-debit you. They cannot block your bank account.

  15. Sir if loan apps report you to credit bureau can you still get access to salary advance loans?

      1. Please help me.
        When I wanted to borrow, I deactivated my Gmail acct where my contacts are. I borrowed with the acct where I just have random contacts. I dropped my real line as an alternative num and they have been threatening me on the whatsapp line. I hope they can’t have access to the contacts on the alternative whatsapp line.
        Note that when I wanted to borrow, those contacts were not on my phone. I just got them back .pls help.

  16. Sir thanks for your time. In the UK fianacial institute advice their citizens not to pay back loan apps if harassed, defame and call or message your contact. So why has Nigeria government not make such order knowing that these guys are illegal and they are not registered, license nor pay taxes. They sent messages to my contacts and even went on to call them. I have decided to pay back at my convince time . How do I contact credit bureau.

  17. I requested for a loan from OXLOAN on Saturday 6th August 2022 but no money was sent to my account( I did not receive the money) but the APP is showing DISBURSED.
    I’ve attached my Statement of Account showing that the said Loan money did not enter my account. I Have sent them my Statement of Account, WhatsApp Chats with my Bank showing that the money did not enter my account rather it reversed back to them. I have sent these evidences to their email [email protected], their WhatsApp number, their APP online customer service, their Google Play Store reviews yet OXLOAN has refused to rectify this UNDISBURSED LOAN rather their Agents have been harassing me, calling and messaging me, threatening me for repayment. Please what else can I do?
    I have also sent messages to CBN and @[email protected] yet I am not getting a response please what else can I do? I don’t want to pay for a loan I didn’t receive plus interest.

  18. Hello.. since the loan shark way of recovering there money is by threats and all form of violation and defamation, once they successful violate or defame somebody publicly, do you think the person will still repay? Cos I don’t think the person will repay after such act. In other words, if they really need there money then they shouldn’t carry out all those there threats and all.

  19. Hello, Pls I took loan from palmcredit. On repayment day, my phone was off. So they auto debited me up-to 10000 more than the repayment amount. I complained to them, they refused to pay. So to get my money back, I took a loan from them and refused to pay. Now they’re threatening to report me to credit bureau. I still don’t want to pay, because my money is with them. What should I do?

    1. Get all payment receipt and and send them screenshot of the amount they over debited you. Only they can add or remove you from credit bureaus.

    2. Deloan is a useless app they borrow me 10k duration of 7day and have pay 12k they are still disturb me and treating me

  20. Good evening
    Have been receiving calls an message fro a loan that have took loan from about 3 times and never delay in paying in the last 2 payment but on this last one i took things went bad for me and now dey are threatening to contact all my contacts send my pictures online and EFCC dey wil report me to an take me to court

    1. It’s just an empty threat, they can’t sue you or report to EFCC. The maximum they can do is to block your BVN from accessing further loans.

  21. If whoever runs a background check on me would always see my records of default, time span and all. How can I make my once good record credible again, even after clearing my name with the Credit Bureaus?

  22. Hello sir
    I took a loan I have been taking from easemoni but recently there app is not working again for me to me when to pay 3days ago the state calling me to come and pay off which I don’t even have the money yet cos I spent too much money on my mum breast cancer operation. Now I want to know if easimoni can send messages to my contacts

        1. nothing, they will just keep calling and sending reminders to his registered phone number. if no one is using the number they will stop calling when they dont get a response.

  23. I know some loan apps can auto-debit your account that is registered with them. But can they debit my other bank account that’s linked with the bvn.

    1. No, they can only autodebit your ATM card that is linked to their app. They won’t be able to debit the account again once you deactivate that particular ATM card.

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