loans in Nigeria without collateral

loans in Nigeria without collateral

There are many websites and apps that give quick loan without collateral. They give loan up to 5 million Naira, and some of them are notably popular. They include Paylater, Renmoney and so on.

Who are the potential customers?

Business owner: Business owners who needs quick cash to expand their business or sort out other business needs. This includes business owners who want to take advantage of quick business opportunities, the ones who need extra cash to buy more goods e.t.c
People who needs money to settle emergencies: This includes salary earners who need immediate cash pending the time their salaries will be paid, Tertiary institutions students who need money to pay school fees or sort bills pending the time their parents or guardian will send them money, people who need to settle bills including medical bills, house rents e.t.c
Criteria for loan approval
You have to go through rigorous registration. These loan apps and website will collect all information about you and your existence, then either propose to give you a ridiculous loan or tell you you are not qualified for a loan. The most annoying thing is their customer representative will call you later to confirm the information you supplied at the point of registration is correct, and implore you to keep the app installed or keep visit in their website because you will be qualified for a loan later. Which is a very big lie.

Imminent dangers of these collateral-free loan apps and websites

  1. They seem to be more interested in having customers data than giving loans. They will either give excuses that you are not qualified for a loan or offer a ridiculous amount with neck break in interest.
  2. The information acquired by these loan companies are dangerous, these websites require information as sensitive as bvn number to register their customers and they know right from the onset that they will not be giving a loan. The information collected can be misused in the future.
  3. There is a high level of poverty and low level of awareness about the risks associated with giving out sensitive data. These two factors are the major reasons why many people will be willing to give out sensitive data like bvn without having a second thought.
  4. These loan apps and websites could get hacked and all customers’ data could end up in the wrong hands.
  5. The most significant danger is scammers setting up a loan giving website or app in order to collect highly sensitive information from the gullible public. This is what the public, banks and government should fear more. It is very easy for a fraud star to obtain credit card information, card pin, bvn number other sensitive data under the guise of loan app or website

The Solution to the problem

  1. Banks and government should orientate the public about dangers associated with giving out sensitive data to third party. They should let the public know that their savings and investments could be carted away if such data falls into the wrong hands.
  2. Loan without collateral sector needs government regulation, it is high time the government get involved in that sector in other to protect the public. They should make sure companies that will be giving loans are duly registered and the maximum amount of interest rates should be set.
  3. Banks too should start giving loans to customers without collateral.
  4. The government should also assist in the provision of loans too

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