What happens when you borrow money from an online loan app and you can’t pay it back
Would you accept the terms they offer, such as your card details, means of identification and BVN?
Once you do this, the money will be transferred to you in a matter of minutes. It sounds easy, but there are pitfalls if you are unable to repay the loan and the interest.
This was the case with a person who took out a loan from one of the online loan sharks who learned the hard way about what happens when you don’t pay back.
Here’s what the person’s friend had to say:
“A friend of mine took out a loan on these online lending platforms. Their interest rates are generally 10 to 30%.
“Borrowers and lending platforms are always in battle when they default. The default fee is also high for the penalty. They call people’s phone contacts (because the app requires borrowers to give it access to their contacts).
“Once you are unable to pay when the repayment period is over, they hire loan collectors to charge you what you owe.
“They also report defaults to the credit bureau, provide their data so that they have little chance of taking out loans from a financial institution in Nigeria.
“With the use of BVN now, delinquent debtors can be blacklisted. They also ask you to link a bank card to them or provide your bank details, so that they have the right to continue to clear funds from your card whenever it is funded. “
“I mean loan collectors take care of it legally and keep calling them and their family / friends to make sure they’re paying.”
The dire economic situation in Nigeria has forced many people to resort to alternatives to ease their conditions.
And the tough lending conditions of traditional financial institutions have forced young Nigerians to increasingly turn to online loan sharks who have fewer barriers.
This is not without its own pitfalls, however, as non-repayment within the agreed timeframe can have very serious consequences, not only for their financial future, especially in a highly digital world, but also for their social image.
The inability to fully regulate the operations of these online platforms currently means that they are devising many crooked strategies to force repayment.
The whole concept of borrowing money is being able to pay it back.
If you can’t afford to repay, you better stay away from these online lending platforms.