With the proliferation of loan apps in Nigeria as well as increasing cases of fraudulent activities in the country, there is serious need to verify the legitmacy of the loan app you want to opt for before going ahead to download the app and to process the loan. This is recommended to be done irrespective how urgent your Financial need may seem to be to avoid falling prey to fraudulent loan apps.

In this article, we will examine the basic steps you can take to verify the legitimacy of a loan app you want to go for when you need loan as well as how to access the list of approved and unapproved loan apps by relevant federal government agency.

Steps To Verify The Legitimacy Of A Loan App

To verify the legitmacy of s loan app you are thinking of, the following steps are recommended:

1. Research on the Owners of the App:

This step involves researching the lending company. Look for a physical address, contact information, and an official website. Legitimate companies are transparent about their identity and provide clear contact details.

2. Check Feedbacks/Reviews:

This step involves looking for reviews of the loan app from reputable sources such Google play store.  Reading such user experiences and testimonials can provide insights into the credibility of the app. Be cautious if you find a high number of negative reviews or complaints about hidden fees and other negative issues.

3. Verify Government Licensing/Approvals

Fintech Companies and Microfinance banks that own most loan apps are normally licensed by the Central Bank Of Nigeria. This step involves checking whether such licensing exists. In addition, the Federal competition and consumer Protection Commission (FCCPC) regularly provides lists of Loan apps that are approved by the Government. Also check if the company is registered by Corporate affairs commission (CAC). You can visit the CAC website and use the public search option

4. Review Terms and Conditions Of The App

This step involves carefully reading the terms and conditions of the loan app. Legitimate lenders provide clear information about interest rates, repayment terms, and any additional fees. Be wary of apps that have unclear or overly complicated terms.

6.. Contact Customer Support For Details

Under this step, you need to reach out to the app’s customer support with any questions you may have. Legitimate lending companies should have responsive customer support that is willing to address your concerns and provide information. Be cautious if the customer support is unresponsive or evasive.

6. Check Security Measures

Ensure that the loan app uses secure technology for handling your personal and financial information. Look for signs of encryption and secure connections, especially when submitting sensitive data. Beware of unsecured URL ie one starting with http:

7. Verify App Permissions

Review the permissions the app requests when you install it. Be cautious if the app asks for unnecessary access to your personal information, contacts, or other unrelated data. Legitimate loan apps only request essential permissions.

8. Beware of Upfront Fees/Payments

Legitimate lenders typically deduct fees from the loan amount, and you should not be required to pay upfront fees. So, be cautious if the app demands payment before disbursing the loan, as this is a common tactic used by fraudsters.

9. Compare with Established Institutions

Compare the loan app with established financial institutions or reputable lending platforms. Legitimate lenders often have a track record and are associated with established financial networks.

10. Consider Your Instincts

If something feels off or too good to be true, then be careful as fraudsters often use pressure tactics or promise unrealistically favorable terms. If the loan app’s offerings seem too attractive, it’s essential to proceed with caution.

List Of Approved And Unapproved Loan Apps In Nigeria

The Federal competition and consumer protection commission (FCCPC) is a Nigerian Federal Government Commission aimed at protecting consumers including loan product consumers from unfair business practices. FCCPC as part of it’s mandates has approved some loan apps and unapproved others follow this link to access the full list in the FCCPC website

It is our strong belief that when you follow the above ten steps as well as check out for the app you are considering in the FCCPC website, you will end up with a wise choice and not fall into the hands of fraudulent app owners.

 

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