Fintech lending in Nigeria is booming: by mid-2025, over ₦400 billion had been disbursed thru digital loan platforms, reflecting a shift in the direction of immediate credit rating solutions and consolation. Nonetheless, that consolation comes at a cost.
The Federal Competitors and Person Protection Payment (FCCPC) got over 11,000 complaints between 2021 and 2023 linked to harassment, files abuse, and unethical recovery practices by digital lenders.
Listed here are 5 warning signs you would additionally fair soundless by no means ignore when borrowing from fintech apps.
What to flag:
- Taking a mediate beyond the advertised curiosity payment, hidden costs fancy processing expenses, daily utilization expenses, or penalties for early repayment can acquire the right kind worth worthy higher.
- Fintech platforms from time to time compound curiosity daily, multiplying your debt instant.
Continuously calculate the Annual Share Payment (APR) and inquire for a breakdown of all expenses sooner than accepting the loan.
2. Unclear or Absurd Repayment Phrases
What to flag:
- If repayment frequency (e.g., daily, weekly) is imprecise or complex, that’s a warning label.
- Glance out for extremely short repayment dwelling windows (e.g., one week on a monumental loan), they’ll entice you into a cycle of borrowing.
Pro Tip: Be obvious there’s a transparent, manageable repayment figuring out and make sure whether or no longer you would repay early without penalty.
3. Aggressive Records Harvesting & Permissions
What to flag:
- Legit fintech apps handiest request wanted files. Steer obvious of apps inquiring for beefy acquire admission to to contacts, messages, or region, in particular when no longer crucial to the loan service.
- Some apps could perchance well additionally fair acquire admission to your microphone, gallery, or name logs, wandering into non-public privacy dangers.
Opt for apps that request minimal permissions: assuredly your ID, bank story or debit card files, and transaction historic previous.
4. Sad or Nonexistent Customer Toughen
What to flag:
- No bodily take care of, no buyer service quantity, or no response whenever you reach out,that’s no longer a factual mediate.
- Glance for platforms the build the chatbot or helpdesk hardly ever replies or offers imprecise, engine-generated solutions.
Take a look at buyer reinforce first, inquire a request, present response time and clarity. Within the occasion that they’ll’t point out phrases concisely, step back.
5. Wildly Generous Credit rating Limits & Darkish Patterns
What to flag:
- If a brand fresh lender will give you an unrealistic restrict early on, fancy ten instances your application revenue, be cautious.
- Some apps employ grading programs or incentives to acquire you borrow higher than you want, leading to debt spirals.
Birth with the smallest, most manageable loan and handiest magnify limits as belief and repayment reliability acquire.
