List Of Fake Loan Apps in Nigeria You Should Avoid in 2023

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In recent times, loan apps have become increasingly popular in Nigeria as they provide quick and easy access to credit facilities for personal or business purposes.

However, this growth has also led to the emergence of several fake loan apps that scam unsuspecting borrowers. It is essential to identify these fake loan apps to prevent falling victim to their deceitful schemes. This article highlights the top ten fake loan apps in Nigeria that you should avoid at all costs.

KashKash.

KashKash is one of the many fake loan apps in Nigeria that are targeting unsuspecting individuals who need quick financial assistance. This app operates by requesting your personal information, including your bank account details, and then promising you a loan within a short time.

However, once you provide your information, the app may begin deducting fees from your account, even if you never received any loan. Some users have reported having their accounts drained after using this app, while others never received any communication from the app after applying for a loan.

It’s important to be cautious when using loan apps in Nigeria and ensure that you only deal with reputable lenders who are registered with the appropriate regulatory bodies. Avoid downloading loan apps from unofficial sources and always verify the authenticity of the app before using it.

Remember, if a loan offer seems too good to be true, it probably is. Don’t be in a hurry to accept any offers without first verifying their credibility. Stay safe and vigilant to avoid falling prey to fraudsters and fake loan apps.

GoCash

Another fake loan app that has been identified in Nigeria is GoCash. This app promises to provide quick loans without the need for collateral or extensive documentation. However, like many other fake loan apps, GoCash has no physical address, and its contact details are non-existent.

Upon closer inspection, it becomes apparent that GoCash is not registered with any financial regulatory body in Nigeria. It does not have a license to operate as a loan provider, and its activities are entirely illegal.

The app may seem legitimate, with its sleek interface and seemingly legitimate loan application process, but in reality, it is just another ploy to defraud unsuspecting individuals of their hard-earned money.

It is essential to stay vigilant and cautious when dealing with loan apps. Always ensure that you conduct due diligence before downloading and installing any loan app. Only use loan apps that are registered with financial regulatory bodies and have a physical address and contact details.

By staying vigilant and avoiding these fake loan apps, you can protect yourself from falling victim to loan scams in Nigeria.

Cash Mall

Another fake loan app in Nigeria is Cash Mall. This app claims to provide quick loans to individuals in need of financial assistance. However, like the other fake loan apps, it is a scam.

Cash Mall does not have any physical office or address and their contact details are mostly invalid. It also does not have any valid license from the Central Bank of Nigeria to operate as a lending institution.

Victims who have fallen for this scam have reported losing their personal and financial information to the app operators. It is important to avoid using Cash Mall and other similar fake loan apps in order to protect yourself from these fraudulent schemes.

Always research the legitimacy of loan apps and lenders before submitting any personal or financial information. Stick with reputable and well-established financial institutions or seek recommendations from friends or family members. It is better to be safe than sorry.

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CashLion

Another loan app that has made its way to the list of fake loan apps in Nigeria is CashLion. The app promises users fast and easy loans with flexible repayment plans. However, reports from several users suggest that CashLion does not deliver on its promises.

According to reviews, the app requires users to pay a processing fee before their loan is approved, but the loan never comes through even after the fee has been paid. Additionally, some users claim that their bank accounts were debited multiple times without receiving the loan they applied for.

Furthermore, the app has a very poor customer service system, and users who try to reach out to their support team do not receive any helpful response. CashLion is a classic example of a fake loan app that preys on the desperation of Nigerians in need of quick loans.

Therefore, it is important for users to be vigilant and research loan apps before signing up for them. Users should be wary of any app that asks for processing fees before loan approval, has poor customer service, or makes unrealistic promises. Always remember that if it seems too good to be true, it probably is.

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FastMoney

FastMoney is yet another loan app that should be avoided by all means. This app claims to provide instant loans to its users, but the reality is far from the truth. FastMoney is known for its hidden fees and exorbitant interest rates, which often leave borrowers in a worse financial position than they were before they applied for the loan.

Like many other fake loan apps in Nigeria, FastMoney doesn’t have any physical address or office location, which makes it difficult to track down the individuals behind the app in case of any issues or disputes. The app also lacks proper documentation and licensing from relevant regulatory authorities, which is a major red flag.

Furthermore, FastMoney requires users to provide sensitive personal and financial information, including bank account details and BVN. This is a significant risk for users who may fall victim to identity theft or fraud.

Overall, it’s advisable to stay away from FastMoney and other loan apps that promise instant loans with little or no documentation. It’s always best to do thorough research and choose a reputable lending institution that’s licensed and regulated by the relevant authorities.

LendCash

LendCash is another fake loan app in Nigeria that you need to avoid. This app is promoted as a platform that offers quick and easy loans without collateral. However, just like other fraudulent loan apps, LendCash is designed to steal personal information and financial data from unsuspecting victims.

The app promises loans ranging from ₦5,000 to ₦100,000, and the repayment period is usually between 14 to 60 days. But once you apply for a loan, LendCash requests access to your contacts, messages, and other sensitive data on your device. This is a major red flag that should cause you to delete the app immediately.

Apart from stealing your personal information, LendCash may also charge you hidden fees and interest rates that are exorbitant. You could end up paying more than double the original loan amount, and this could put you in a difficult financial situation.

So, if you come across the LendCash loan app or any other similar loan apps, it is best to avoid them. Instead, stick to reputable financial institutions and banks when seeking loans. Also, remember to carry out due diligence before giving out your personal information to any loan app or platform.

BorrowNow.

BorrowNow is yet another loan app in Nigeria that appears to offer quick and easy loans to users. However, the truth is that it is a fraudulent app that only aims to scam unsuspecting individuals.

Many people have fallen victim to this scam, as they are promised loans without any collateral or credit check. However, after submitting their personal information and bank details, BorrowNow either disappears or demands hidden charges from the users before granting the loan.

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Moreover, some victims have reported being bombarded with endless calls and messages from BorrowNow representatives, urging them to complete the loan application and transfer the required fees to secure their loans.

To avoid being scammed by fake loan apps like BorrowNow, ensure you only apply for loans from credible and registered financial institutions. Do thorough research and read reviews about the app before downloading and submitting your personal information. 

Remember, if an offer appears too good to be true, it probably is. Stay vigilant, stay safe!

LCredit

LCredit is another fake loan app that is deceiving unsuspecting Nigerians with promises of easy loans. The app has a flashy and professional interface that might make it seem trustworthy at first glance. However, just like the other apps on this list, LCredit does not have a registered license or authorization from any regulatory body in Nigeria.

Users have reported various issues with LCredit, including being unable to access their loans after application and not receiving funds even after being approved. Some have even reported that the app charges high-interest rates, leaving borrowers in a debt trap.

Additionally, LCredit does not have any physical offices or customer service centers, making it impossible to reach out for help or complaints.

To avoid falling into the trap of fake loan apps like LCredit, always ensure to conduct thorough research on the lender and app before providing any personal information or signing up for a loan. It is always safer to stick to known and registered loan providers or banks in Nigeria.

FAQS

 Which loan app is fake? 

To determine the legitimacy of a loan app, conduct thorough research, read user reviews, and check for proper licensing and registration from relevant regulatory bodies.

Which loan app is banned in Nigeria? 

There are several loan apps that have been banned in Nigeria. However, regulatory policies and restrictions regarding loan apps may change over time. Stay updated with the latest information from reliable sources, including the Central Bank of Nigeria (CBN) and other regulatory bodies.

What is the name of the fake loan app in Nigeria? 

As discussed earlier in the article, some of the fake loan app in Nigeria includes, kashkash, Lcredit etc. However, it is important to be cautious of loan apps with poor reputations, negative user reviews, or questionable practices. Always conduct thorough research, read user experiences and reviews, and verify the legitimacy of loan apps before engaging with them.

How do I know if a loan app is legit? 

To determine the legitimacy of a loan app, consider the following factors:

  • Research the loan app’s background, company information, and reputation.
  • Check for a valid license or registration from relevant regulatory bodies.
  • Read user reviews and ratings to gauge the experiences of other borrowers.
  • Verify the loan app’s terms and conditions, interest rates, and fees to ensure transparency.
  • Legitimate loan apps typically have a professional website, clear contact information, and responsive customer support.

Can a loan app block my BVN? 

Legitimate loan apps should not block your BVN (Bank Verification Number). BVN is a unique identifier for individuals in Nigeria and is typically used for identity verification and fraud prevention purposes. 

However, it is important to be cautious about sharing your BVN or any sensitive personal information with unverified or suspicious loan apps. Only engage with reputable and licensed financial institutions or loan providers to protect your personal data.

Conclusion

As we’ve seen, there are a lot of fake loan apps out there that you need to watch out for if you’re looking to get a loan in Nigeria. Always be vigilant and do your research before downloading any app or providing any personal information.

 Make sure the loan provider is legitimate and registered with relevant financial institutions. Remember, if it seems too good to be true, it probably is. Don’t fall for fake promises of easy loans with no collateral. Be smart, stay safe, and only work with reputable lenders.

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