5 ways to know if a loan app is reliable in Nigeria
If a credit sounds so good that it seems unreal, it is most likely unreliable. Not all loan and loan apps should be accepted. Here's how you know the fraudulent ones.
Is it a reliable institution or app in which I am requesting my loan? Surely you have asked yourself that question when starting a procedure with a bank or some financial institution. It is not a minor issue, it is probably the most important.
We all go through difficult times in Nigeria, economically speaking, whether personally, family or even as a society. You should not be carried away by the urgency you have at that moment, since if a loan sounds so good that it seems unreal, it is very likely that you should analyze it thoroughly.
How to know that a loan app is reliable?
It has probably happened to you to hear that they offer you credit without conditions, accessible and easy to pay, if so, pay a little more attention to both the product and the institution or person that is offering it.
This does not mean that all credit is dangerous, or that an easy loan is not reliable, not necessarily. It means that it is necessary to carefully analyze certain elements to verify that it is a reliable institution and not a fraud.
People have lost quite a lot of money in recent times in Nigeria, for falling for easy loan offers. How to detect that it is a reliable credit? Let’s start by looking at how these scams generally operate:
Supplant names of institutions
Generally these fake companies use information from financial institutions to make people fall.
Few requirements are required
Another element of the modus operandi of these fake apps and companies is to request very few requirements, however, they can request a cash advance, justifying it as a payment for procedures.
Once they get the person to pay the advance, obviously no credit is given. The user who has been scammed cannot contact them again or they discover that they were not part of the company they indicated.
If you identify these patterns in a loan that they offer you, you must be careful that it is not a fraud.
5 ways to know if a loan institution is reliable
If you are considering applying for a loan and you do not know if it is reliable, take into account these tips before risking some type of fraud:
1. They should not request a cash advance
A warning sign is that they ask you to make an advance, payment for commissions, procedures or any other concept, where you need to deliver cash. Any institution that makes this type of request is not a reliable procedure.
2. Check the information of the financial institution
Make sure that it is an institution that is registered and complies with the rules established by the country’s authorities. Try to corroborate the information they provide you: address or telephone. If it is an institution to which you can go, do so if you have doubts or consult their official sites to contact their numbers and confirm that the loan they offer is part of their products.
3. Analyze the process
Another essential piece of advice is to analyze the process in a general way, suspect if it includes any of the following situations:
You are asked to provide data from your credit or debit cards or personal documents.
They don’t check your credit history.
They do not ask for collateral or guarantee.
The process is carried out through social networks.
4. Provide clear information
It speaks well of a loan and an institution, that its information is very clear, from requirements, process, amounts, interest, monthly payments, etc.
5. Does not ask for private information
Although every request involves providing personal data to be carried out, it is very different from being asked for personal or financial data that does not correspond to the process and that is also private. Be careful because identity theft is a very common fraud, in which people give all their information in the hope of ultimately receiving a loan, an issue that does not happen.
In summary, you must be extremely careful when applying for a loan and confirm that the institution and process have the necessary elements to consider them reliable. Finally, there is the SIPRES (Registration System for Financial Services Providers) where you can check which are the institutions that make up the financial market, in such a way that you can corroborate any with which you have doubts.