List of Fake Loan Apps In Nigeria 2023 – [Run O!]


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Top 10 List of Fake Loan Apps In Nigeria

If you hear ‘run o’, its from the list of fake loan apps in Nigeria! ‘Gbera’ would be the next soothing Naija slang, or is it ‘japa’ from anything or situation that will affect you quite badly.. Hmm…

Have you ever found yourself in need of quick cash and turned to loan apps for help? I know I have, and let me tell you, the experience can be both convenient and unsettling. If you haven’t checked out my review of the top 10 best loan apps in Nigeria, go and check it right now.

In today’s digital age, where financial solutions are just a few clicks away, it’s essential to be cautious due to the emergence of fake loan apps that have made life miserable for Nigerians.

Picture this: You’re in a tight spot, facing unexpected expenses or urgent bills. You turn to your smartphone, hoping a loan app can relieve you. It’s happened to me, too – the rush of submitting personal details, the excitement of instant approval, and the ease of having funds credited almost instantly. But as the saying goes, not all that glitters is gold.

My journey through the realm of loan apps could have been smoother sailing. I stumbled upon some apps that promised the world but delivered disappointment. I faced high-interest rates, hidden fees, and even unauthorized access to my data. It’s easy to fall victim to these schemes, especially when desperation clouds your judgment.

Nigerian woman carefully checking the list of fake loan apps in Nigeria

Through my experiences, I learned the importance of thorough research before entrusting your financial information to any app. That’s why I’ve compiled a list of fake loan apps in Nigeria you should know.

By sharing my encounters and highlighting the red flags, I hope to equip you with the knowledge to make informed decisions and avoid falling into the traps I once did.

So, fasten your seatbelt as we navigate the world of digital lending, where things aren’t always what they seem. But wait o, how do you discern which loan apps are legitimate or fake?

Let’s uncover the truth behind these deceptive loan apps and ensure you’re well-prepared to tackle your financial challenges wisely. 

Related: Loan Apps Without BVN in Nigeria

How to Identify Fake Loan Apps In Nigeria 

Identifying fake loan apps in Nigeria can be challenging, but there are several red flags to watch out for to avoid falling into their traps. Here are some essential tips to help you differentiate between genuine and fake loan apps: 

  • Poor User Reviews: Check app reviews and ratings on the app store. Negative reviews highlighting hidden charges, unauthorized transactions, or poor customer support could be warning signs.
  • Unrealistic Promises: Be wary of apps that promise unbelievably low-interest rates or guaranteed approvals. If an offer sounds too good to be true, it probably is.
  • Insecure Data Practices: Fake loan apps might request excessive personal information or permissions that seem unnecessary for a loan application. Check if the app’s privacy policy is easily accessible and credible.
  • Contact Information and Customer Support: Legitimate apps provide reliable contact information and responsive customer support. Fake apps may need more specific contact details or more responsive support.
  • Unsecured Website: If the app’s website lacks proper security measures (HTTPS), it’s a red flag. Your personal and financial information could be at risk.
  • Limited Presence: Legitimate lenders often have a visible online and offline presence, including websites, social media profiles, and physical offices. Fake apps may need these.
  • Check Regulatory Approval: Legitimate loan apps should be registered with appropriate financial regulatory bodies in Nigeria. You can verify their authenticity by cross-checking with official registers.

List of Fake Loan Apps In Nigeria You Should Avoid

Let’s look at some of these phony loan apps in Nigeria today:

  • LCredit
  • NairaPlus Loan
  • Borrow Now
  • 9jaCash Loan
  • GGMoney Loan
  • 9Credit Loan
  • SokoLoan
  • Eas Cash Loan
  • KashCash Loan
  • Aje Loan

1. LCredit

Lcredit is first on our list of fake loan apps in Nigeria you must avoid. I have had my share of sad experiences with this app. 

I remember when I had an emergency back in 2021 and needed 5k urgently, I stumbled on Lcredit. As naive and unsuspecting as I was, I decided to apply for a loan and believe me when I say the interest rate and the time frame were ridiculous. 

First, I was given N3600 instead of the N5,000 I applied for, and the reason was that the interest was removed along with the service charge, which, when paid back in 7 days, I will have to pay back N5,000. 

When the deadline was exceeded, and I couldn’t pay back immediately, they started calling my contacts and sending messages to them that I was a thief on the run and some negative things about me just because I couldn’t pay back immediately on the seventh day.

It was an unfortunate experience, and they kept doing this to other unsuspected victims until the app was reported, and they were subsequently banned from the Google Play Store.

They usually ask for personal details and contact information and give outrageous interest rates that violate the standard interest rate established by reputable financial institutions. 

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2. NairaPlus Loan

Ranked as one of the fake loan apps in Nigeria, NairaPlus has alarmingly invaded users’ privacy and blatantly disregarded data privacy regulations. Shockingly, it has even stooped to blackmailing and sending damaging messages to the contacts of users who are labeled as debtors due to unpaid amounts.

It’s highly advisable to steer clear of NairaPlus for your mental well-being. After all, legitimate online quick loans are readily available in Nigeria, and exposing yourself to the risks associated with NairaPlus is not worth it. 

The app is no longer available on the Google Play Store for obvious reasons: too many negative reviews about it due to its questionable practices. 

3. Borrow Now

Borrow Now is another prominent fake loan app that Nigerians should avoid. Infamous for its exorbitant interest rates and impractically short loan durations, this app targets borrowers in Nigeria with questionable tactics.

The level of misconduct displayed by Borrow Now is staggering – it has boldly disregarded both Google policies and Nigerian lending regulations. As a result, this app has raised red flags and faced a ban from both entities.

Moreover, Borrow Now has stooped to new lows by sending intimidating and defamatory messages to its users, a common unethical practice among lenders featured in this list.

Indeed, here’s a restructured version of the text for better readability.

Related: Top 10 Best Apps to Save Money In Nigeria

4. 9ja Cash Loan

Like other fake loan apps in Nigeria, 9ja Cash offers borrowers unfavorable interest rates and impractical loan durations. Their strategy involves starting with small loans, claiming to help build credit scores for larger loans and extended terms. 

However, this facade quickly unravels – even after using their services 7 to 10 times, borrowers discover the promises are empty. Loan amounts remain small, and interest rates sometimes skyrocket disturbingly; if you are unable to repay your loan, 9ja Cash resorts to threats and defamatory messages sent to your contacts.

5. GGMoney Loan

For your well-being, avoiding predatory loan sharks and fake loan apps like GGMoney in Nigeria is crucial. GGMoney crosses ethical boundaries by infringing on users’ data privacy rights. 

This unscrupulous app employs extreme measures to recover money, even resorting to messages sent to your friends and family, falsely labeling you a fraud and a thief.

GGMoney’s loans come with shockingly high interest rates and unfavorable terms. Numerous reports have highlighted unethical practices, including the app’s staff and their astronomical interest rates. It’s best to steer clear of the GGMoney loan app to safeguard your sanity.

6. 9Credit Loan

Adding to the list of fake loan apps to avoid in Nigeria is 9Credit. As with others mentioned, 9Credit operates unethically, charging borrowers exorbitant interest rates and offering impractically short loan terms of just seven days, far below the minimum of 60 days stipulated by lending laws.

Shockingly, 9Credit resorts to threats and defamatory messages when borrowers fail to pay. Such behavior is a clear indication of their unethical practices. To preserve your reputation and financial well-being, staying away from the 9Credit loan app is wise.

7. Sokoloan

Sokoloan holds a prominent position among the fake loan apps in Nigeria, having pioneered the harassment of borrowers. This app and its various spinoffs flaunt outrageously inflated interest rates that burden borrowers.

In defiance of lending regulations and Google Play Store policies, Sokoloan offers loans with a mere 7-day repayment window. It’s worth noting that the Nigerian government blacklisted Sokoloan, although it managed to evade removal by incentivizing 5-star ratings.

While Sokolove claims to offer loans up to N300,000, this assertion is untrue. The app’s agents resort to harassment when borrowers default, tarnishing your peace of mind. To avoid trouble, steer clear of Sokoloan and its affiliates.

Related: Top 10 Best International Money Transfer Apps

8. Ease Cash Loan 

Ranking at number 9 on the list of fake loan apps in Nigeria, Ease Cash thrives on exploiting borrowers. This app faced a Google ban due to its dubious practices, prompting a name change to escape sanctions.

Like its counterparts, Ease Cash imposes questionable interest rates on its loans. When borrowers struggle to repay, threats and humiliation follow. Privacy violations are also a concern. Given these circumstances, steering clear of Ease Cash is a wise decision, given their notorious lending practices. It is no longer available on Google Playstore. 

9. Kashcash Loan

The final entry on this list of fake loan apps in Nigeria is KashKash. While claiming to offer loans from ₦20,000 to ₦100,000 with terms of 91 to 365 days and interest rates of 0.1% to 1%, KashKash’s customer reviews expose a different reality.

Despite promises, KashKash’s loan amounts fall short of N100,000, and their durations are surprisingly brief, often just seven days. The looming high interest rates exacerbate the issue. Borrowers who default are met with public shaming messages.

Considering the myriad of false claims and unfavorable terms, avoiding KashKash, like the other fake loan apps, is a prudent choice.

10. Aje Loan

Among Nigeria’s deceptive landscape of fake loan apps, Aje Loan emerges as another concerning player. Its presence highlights the importance of caution when considering digital lending solutions.

Like its counterparts, Aje Loan promises quick access to funds, catering to the financial needs of individuals facing emergencies or unexpected expenses. However, delving deeper into its operations reveals a different story altogether.

Aje Loan follows the typical pattern of offering seemingly attractive loan terms only to impose unfavorable interest rates and repayment conditions once users are enticed into borrowing. The allure of fast Cash can be tempting, but it’s crucial to exercise diligence and skepticism when dealing with apps like Aje Loan.

Aje Loan’s deceptive practices became evident when I struggled to repay timely due to the unexpectedly high interest rates. Instead of receiving understanding and support, I was bombarded with aggressive reminders, threats, and even harassment to settle the outstanding amount.

Navigating the aftermath of falling victim to Aje Loan was financially burdensome and emotionally distressing. The relentless pursuit for repayment and the shame and embarrassment of being unable to meet their demands left an indelible mark on my well-being.

My experience underscores the importance of thorough research, careful consideration, and skepticism when dealing with digital lending apps. While the appeal of quick Cash is undeniable, the hidden traps these apps set can lead to a cycle of debt, anxiety, and damaged creditworthiness.

List of loan apps exposed by the federal government

Effects of Borrowing Money from Fake Loan Apps In Nigeria 

Borrowing money from any of the platforms on this list of fake loan apps in Nigeria can severely and negatively impact your financial and personal well-being.

Here are some of the potential consequences:

  • Financial Loss: Fake loan apps often promise low-interest rates and favorable terms to attract borrowers. However, once you’re trapped, they may impose hidden fees, high interest rates, and excessive charges that can lead to significant financial losses.
  • Identity Theft: Fake loan apps might request extensive personal information during the application process. If they are not secure or legitimate, your sensitive data could be stolen and used for identity theft, leading to more severe financial problems.
  • Unauthorized Transactions: Some fake loan apps might gain access to your bank account or credit card information and initiate unauthorized transactions, leaving you with unexpected debits and potential overdraft fees.
  • Debt Cycle: High interest rates and hidden fees from fake loan apps can lead to a cycle of debt. Borrowers might be unable to repay the loan on time due to the excessive charges, leading to extensions and additional fees.
  • Credit Score Damage: Defaulting on payments or getting caught in a debt cycle can negatively impact your credit score. This can affect your ability to secure legitimate loans, mortgages, or credit in the future.
  • Harassment and Threats: Some fake loan apps resort to aggressive and illegal debt collection tactics, including harassment, threats, and constant reminders. This can cause emotional distress and anxiety.
  • Loss of Privacy: Fake loan apps might sell or misuse your personal information, invading your privacy and potentially exposing you to other scams.
  • Legal Consequences: In some cases, fake loan apps might use deceptive practices that violate laws and regulations. You could face legal repercussions if you unknowingly get involved with such apps.
  • Time and Effort Wasted: Dealing with the aftermath of borrowing from fake loan apps can be time-consuming and stressful. It would help if you spent a lot of effort resolving disputes, recovering lost funds, and repairing your credit.
  • Distrust in Legitimate Services: Falling victim to fake loan apps can erode your trust in legitimate financial services and make you hesitant to borrow from trustworthy sources when you genuinely need assistance.

To avoid these impacts, it’s crucial to conduct thorough research, read user reviews, and verify the authenticity of any loan app before borrowing money. Always choose reputable lenders and be cautious of any deal that seems too good to be true. 

If you suspect you’ve encountered a fake loan app, it’s essential to report it to relevant authorities and take steps to protect your financial well-being. 

Why do Fake Loan Apps in Nigeria Thrive? 

Fake loan apps in Nigeria thrive due to factors that exploit people’s financial vulnerabilities and technological naivety. Here are some reasons behind their success:

  • Desperation for Quick Cash: Many individuals in Nigeria face urgent financial needs and seek quick solutions. Fake loan apps capitalize on this desperation, promising instant funds without thorough background checks.
  • Lack of Financial Literacy: Limited financial education leaves people unaware of the intricacies of interest rates, repayment terms, and hidden fees. This ignorance makes them easy targets for deceptive lending practices.
  • Digital Divide: The rise of smartphones and internet access has made digital lending more accessible, but not everyone can discern legitimate apps from fake ones, creating an opportunity for scammers.
  • Social Pressure and Shame: The stigma attached to financial difficulties and borrowing can lead people to make hasty decisions without fully understanding the terms, allowing fake apps to exploit this vulnerability.
  • Aggressive Marketing Tactics: Fake loan apps often employ aggressive marketing strategies, flooding social media platforms and messaging apps with enticing offers and luring unsuspecting users.

Solutions to Address Fake Loan Apps

To counter the proliferation of fake loan apps in Nigeria, a multi-faceted approach is required:

  • Enhanced Regulation: Government authorities must strengthen regulations and oversight of digital lending platforms. This involves proper licensing, regular audits, and punitive measures for violators.
  • Financial Education: Initiatives to improve financial literacy are essential. Educating individuals about interest rates, repayment terms, and legitimate lending practices empowers them to make informed decisions.
  • Public Awareness Campaigns: Government agencies, consumer protection groups, and media can collaborate to raise awareness about the risks of fake loan apps. This can help users identify red flags and report suspicious apps.
  • App Store Scrutiny: App stores should implement stricter vetting processes to ensure only legitimate loan apps are available for download. User reviews and ratings can also help filter out fake apps.
  • Industry Collaboration: Collaboration between fintech companies, traditional financial institutions, and regulatory bodies can help establish best practices and share information to identify and shut down fake loan apps.
  • Whistleblower Protection: Individuals who report fake loan apps should be protected from retaliation. Encouraging users to come forward with information can aid in identifying and addressing these scams.
  • Transparent Terms and Conditions: Legitimate loan apps should provide clear terms and conditions, ensuring users understand the risks and obligations before borrowing.
  • Legal Action: Authorities should take swift legal action against operators of fake loan apps, sending a strong message that such practices will not be tolerated.

By addressing these issues through collaborative efforts between government, financial institutions, technology companies, and the public, Nigeria can curb the growth of fake loan apps, protect consumers, and foster a more secure digital lending environment.

FAQs About Apps On the List of Fake Loan Apps In Nigeria

Here are commonly asked questions of loan apps in Nigeria that are fake, and answers:

Why was LCredit Removed from the Play Store?

In a straightforward explanation, LCredit faced removal from the Google Play Store due to the actions of Play Protect – an Android security system designed to identify and safeguard users against privacy breaches. LCredit had been involved in unauthorized data access and defamation of users, prompting its removal from the platform.

Which Loan Apps Should You Avoid in Nigeria?

When considering loan apps in Nigeria, it’s crucial to steer clear of those engaged in undesirable activities. Some examples of apps that have faced regulatory intervention by the FCCPC, ICPC, NITDA, and the Nigerian Police Force due to these practices include GGmoney, Lcredit, EasyCredit, Kashkash, 9credit, and Easy Moni. To ensure your financial safety and data privacy, avoiding apps associated with such activities is wise.

List of Registered and Approved Loan Apps In Nigeria

Presenting you with the list of fake loan apps in Nigeria, without helping you with a review of the approved loan apps will render this article to be useless.

So, here’s a quick rundown of the best loan apps in Nigeria, that are approved by the Federal Government:

For more details about each of these approved apps, check out my honest review of the best loan apps in Nigeria today.

List of Fake Loan Apps In Nigeria (Summary) 

In a digital age where convenience meets financial need, the emergence of fake loan apps in Nigeria is a stark reminder of the risks beneath the allure of instant Cash for personal loans online.

The journey through the top 10 fake loan apps has unveiled a world of deceptive practices, exploitative terms, and unscrupulous tactics. From promising low-interest rates to luring borrowers with small loans, these apps quickly reveal their true intentions, leaving individuals trapped in cycles of debt, anxiety, and privacy violations.

The proliferation of fake loan apps is a pressing concern that requires concerted efforts from regulatory bodies, financial institutions, technology companies, and consumers.

Public awareness campaigns, robust regulation, enhanced app store scrutiny, and improved financial literacy are the building blocks of a safer lending landscape.

As we navigate the evolving digital lending landscape, it’s imperative to be vigilant, educated, and cautious. By sharing experiences, spreading knowledge, and making informed choices, we can collectively safeguard our financial well-being, data privacy, and peace of mind. 

What did we fail to include in this list of fake loan apps in Nigeria? I’d really love your input based on your experiences and what you’ve also tried. Let’s meet in the comment box below.

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