List of Fake Loan Apps in Nigeria – All Banned Loan Apps And How To Identify Them

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In this post, I shared the updated list of fake loan apps in Nigeria. Please look and read through to be informed about these fake loan apps in Nigeria, how to identify them, and ensure to stay safe. 

Loan apps have become a popular way for people to access quick loans without going through the tedious process of traditional bank loans. However, with the rise in the popularity of loan apps comes an increase in fake loan apps that prey on unsuspecting individuals looking for financial assistance. In Nigeria, there has been a surge in the number of fraudulent loan apps, leaving many victims stranded and indebted.

If you are someone who is considering taking out a loan from an app or already uses one, it’s essential to know which ones are legitimate and which ones are not. This article will provide you with a comprehensive list of fake loan apps in Nigeria that you should avoid at all costs. I’ll also discuss how these scams work so that you can identify them and avoid falling victim.

It’s important to note that while some genuine lenders operate solely online, they usually require proof of income and other necessary documentation before approving any application. Fraudulent loan apps on the other hand often promise fast approvals and disbursements without requiring much information upfront. 

Therefore, knowing which platforms to trust could save you from losing your money or compromising sensitive personal information. Keep reading to find out more about these malicious apps and how to protect yourself against them!

Check out the top legit loan apps in Nigeria

What Are Fake Loan Apps?

Fake loan apps have become a common problem in Nigeria, with many unsuspecting individuals falling for their traps. These are mobile applications that claim to offer quick loans without any collateral or credit checks. However, they end up stealing personal information and money from the users.

List of Fake Loan Apps in Nigeria

A list of fake loan apps in Nigeria has been compiled by various organizations as well as government agencies. This list serves as a warning to potential victims who may be tempted to use these apps. Some of the popular names on this list include Loan4Now, Sokoloan, MoneyPal, KwikCash, and CreditVille. The full list will be given later in this post.

It is important to note that not all loan apps are fraudulent; there are legitimate ones that follow due process and operate within the confines of the law. Therefore, it is crucial to do thorough research before downloading any loan app or providing sensitive information such as bank details or BVN numbers. 

Always check if the app is registered with relevant authorities and has positive reviews from previous users.

Moving forward, knowing about the types of fake loan apps in Nigeria can help people avoid falling victim to scams. The next section will delve into some of these types and how they operate.

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Types Of Fake Loan Apps In Nigeria

Fake loan apps have become rampant in Nigeria, and there are various types to watch out for. These fake applications usually come disguised as genuine ones with enticing offers that make them seem legitimate. However, they are designed to exploit unsuspecting individuals who fall into their trap.

The types of fake loan apps in Nigeria are listed below. 

Phishing app: These type of fake loan apps steals personal information from their users. This information can be used by hackers or fraudsters to access bank accounts, credit card details, social media logins, and other sensitive data. 

Fraudulent lender app: They claim to offer instant loans without collateral but end up charging exorbitant interest rates or hidden fees.

Malicious files: Lastly, some fake loan apps have been known to install malware on phones or devices once downloaded, compromising security measures by device owners. 

It’s essential to always read reviews before downloading any application and carry out background checks on lenders offering loans online.

In conclusion, it’s vital to beware of these different types of fake loan apps when searching for quick cash solutions online. 

Protecting oneself involves a combination of cautionary steps such as researching potential lenders’ backgrounds thoroughly and checking reviews left by previous clients. In the next section, we will discuss how you can protect yourself further from falling victim to scams perpetrated through these apps.

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How to Identify Fake Loan Apps in Nigeria

  • Not Available on Google Play Store or Apple Store

I know that there are numerous fake loan apps on official download platforms like the Play store. However, the majority of fake loan apps prefer to use unofficial platforms — this means you can’t download them on an official download platform. 

Also, as a result of the increasing number of these fake loan apps and as requested by the Federal Competition and Consumer Protection Commission (FCCPC). Google has had to tighten its filters to prevent further instances of fraud and has also removed several fraudulent applications from its store. 

One such app that was removed from the Play Store as a result of instructions from the agency was Sokoloan.

On the grounds of unethical behavior, the FCCPC has also asked that Maxi Credit, Here4U, ChaCha, and SoftPay be removed from the Play Store, according to a report by Nairametrics.

Nigerians seeking loans without BVN, which has evolved into a selling point of these illegal credit platforms, tend to be the victims of fake loan apps that are inaccessible on the Google Play Store.


  • Abusive collection practices

They are associated with aggressive collection behavior such as fraud, defamation, and extortion, which are illegal under Nigerian law, these are symptomatic of a fake loan app.

Due to their aggressive collection methods, fake loan applications have grown to be a significant problem in Nigeria. Their business model is to offer a loan in exchange for access to users’ personal information and phone data, such as their contact list and credit and financial history.

Within a few days of the loan being approved—often for a much smaller amount than was originally requested—representatives of the fake loan app demand payment of the funds with illegally high-interest rates via text messages and phone calls. This quickly develops into a harassment and threat campaign against the borrower and his or her family.


  • Negative customer feedbacks/reviews

One way to determine whether a loan app is legit or not is through its customer’s review. I believe I emphasized that a lot already. With the review on the play store, you can easily determine if the service they offer is legal, and what customer experiences have been.

So, always take out time to do your due diligence in checking out the reviews, spend time to do this, and examine the reputation of the loan app. Don’t be in a rush to download loan apps and fill out your application, as there may be hidden consequences. 

A simple background check could just be the difference between falling victim to fake loan apps and obtaining legitimate loans.


  • No website

Every genuine and legitimate loan app must have a complete online presence — where the company’s foundation, history, goal, and vision, as well as all the institutional information that will help you verify the company’s credibility and reputation, is shared.

All of this information is what will help you verify the authenticity of the loan app even before applying for a loan. However, most fake loan apps have been observed to surface on the Play Store without a solid website. Even the ones that do have a website are faced with the related problem below. 


  • Unsecured website

In the list of fake loan apps in Nigeria, you will find so many with unsecured websites. Their website is shady, fraudulent, and very suspicious.

Once you visit the official website of any loan app, and it does not have (HTTPS) which stands for Hypertext Transfer Protocol Secure, then it is a red flag. It is important to note that this does not mean that the website with HTTPS is a hundred percent reliable as well. It only helps you filter out the unsecured website with ease. 

In addition to having HTTPS, the URL must also have a padlock as well. This indicates that the website has an SSL certificate that certifies it is a secure website.

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  • Web page irregularity and functionality

Because their aim is to defraud people, they will spend less time in making sure the website is professionally set up and will also have lots of irregularity. The behavior and functionality of the site will always be out of sync. 

You may see some typos, grammatical errors, misspellings in the text, incorrect Internet addresses, e-mail addresses, unresponsive phone numbers, and other inconsistencies with the loan application.

To identify a fake loan app, simply go to the lender’s official website and make sure all buttons and links work properly. If not, it is possible that the website has been copied and is thus untrustworthy.


  • Advance payment demands

An obvious red flag and a sure sign that a loan application is fraudulent is if it asks for payment before the loan is disbursed.

The majority of fraudulent loan applications use the user’s inexperience and desperation to demand payment in advance.

Even though they appear to be true and convincing, fake loan applications that request an upfront payment may assert that it is a fee to secure the loan or that it is a small fee that will be repaid because it will act as insurance. These services should be avoided.

You might be charged an upfront fee for a legitimate loan application; this fee is typically mentioned in the contract. Furthermore, the sum will always be deducted from your credit payment rather than being requested in advance.


  • Requests for passwords and sensitive information

Some fake loan apps ask for sensitive information like credit card numbers and bank account passwords.

If asked, you shouldn’t divulge this information. This is without a doubt one of the main signs that raise doubt about the offer’s sincerity.


  • Hidden loan conditions

Be extremely cautious of loan applications that contain secretive, exploitative terms. Customers must be diligent when seeking information about the procedures, payment amounts, and intervals between payments, as well as the interest rate that will be applied to financing.

Another sign of fake loan apps in Nigeria is the absence of legal documents, which must identify the entity issuing the loan, its share capital, and its contact information.

Every element of a financial offer must be fully disclosed before acceptance.


  • Sanctioned by financial authorities

All financial institutions engaged in lending must be registered with either the National Information Technology Development Agency (NITDA) or the Central Bank of Nigeria (CBN), or both, as monitored businesses.

A strict legal framework governs credit; even loans between friends are subject to regulation. This prevents exploitation and makes it easier to spot fraud attempts.

Approval is necessary for a loan application to be authorized to extend credit. In order to proceed with a loan request, it is crucial to confirm that the company is listed in the Nigerian registry of authorized financial agents, especially if you are unfamiliar with the brand.

See our top 17 best loan apps in Nigeria with instance loan approval and low interest rate

List of Fake Loan Apps In Nigeria

  • Sokoloan 
  • LCredit
  • 9Credit
  • Maxi Credit 
  • Here4U
  • CreditHall
  • ChaCha
  • SoftPay
  • ICoin
  • GoCash 
  • Okash
  • GotCash
  • EasyCredit
  • Kashkash
  • iCredit
  • Speedy Choice
  • Cashfarm
  • Kashpal
  • BorrowNow
  • Loan4Now
  • CashLion
  • FastMoney
  • Oxloan
  • NairaPlus
  • GotoCash
  • CashRain
  • 9ja Cash
  • LendCash
  • Cash Wallet
  • NowCash
  • Ease Cash
  • Palmcash
  • GetCash
  • GGMoney
  • LionCash
  • AngelLoan
  • Star Loan
  • Nkash
  • CycleCash
  • GoCashh
  • ForNaira
  • NCash
  • Cash Mall
  • Rapid Naira
  • XCredit

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How To Protect Yourself From Fake Loan Apps

Loan apps can be a lifesaver when you need urgent cash. However, in Nigeria, there are several fake loan apps that can put you at risk of fraud and identity theft. These scams have cost many unsuspecting individuals their hard-earned money, so it’s crucial to know how to protect yourself from them.

Firstly, always do your research before downloading any loan app. Check the reviews and ratings on Google Play Store or Apple App Store to see what other users say about the app. Also, visit the company’s website and verify its contact details, including phone numbers and email addresses. If something seems off, don’t download the app.

Secondly, read through the terms and conditions carefully before applying for any loans via an app. Fake loan apps often use vague language that is designed to trick borrowers into agreeing to unfavorable terms, such as high-interest rates or hidden fees. Therefore, ensure you understand everything stated in the T&Cs before proceeding with your application.

Lastly, never share sensitive information such as bank account details or BVN (Bank Verification Number) with anyone over the phone or online. Legitimate lenders will not ask for this information upfront, however, they may require it during the verification process after your application has been approved.

Protecting yourself from fake loan apps requires diligence and caution in equal measure. So always remember to research thoroughly, read carefully, and keep your personal information safe to avoid falling victim to these fraudulent schemes.

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FAQs: Fake Loan Apps in Nigeria

What Is The Legal Action That Can Be Taken Against The Creators Of Fake Loan Apps In Nigeria?
In recent times, the proliferation of fake loan apps in Nigeria has become a cause for concern. These fraudsters lure unsuspecting victims into downloading these apps and collecting their personal information under false pretenses. As such, it is important to examine what legal action can be taken against the creators of these fake loan apps.

One possible course of action that can be taken against the creators of fake loan apps in Nigeria is through civil litigation. Victims who have suffered financial losses as a result of these fraudulent schemes may choose to sue the perpetrators in court for damages. This could include compensation for any funds lost or stolen by the scammers, as well as other costs incurred due to identity theft or other related crimes.

Another option would be criminal prosecution by law enforcement agencies. The Nigerian police force has been working with various stakeholders including fintech companies to clamp down on this menace. 

Furthermore, relevant laws exist in Nigeria’s Criminal Code Act which prescribes certain punishments for cybercrime-related offenses like hacking, identity theft, and other forms of fraudulent activities carried out via computer systems or networks.

Overall, while there are no easy solutions to tackle the problem posed by fake loan apps in Nigeria, taking legal action against those responsible can serve as an effective deterrent and also provide justice for those affected. By working together with both private sector players and government authorities, we can create a safer online environment where users’ privacy and security are protected from malicious actors seeking to exploit them.


What Should I Do, If I Download a Fake Loan App?
There are possibilities of downloading a fake loan app before you realize it’s fake. Once you realize that you have downloaded a fake loan app, uninstall the app immediately and remove every history of the fake loan app from your device. 

Also, if you used your usual password associated with your other important platforms like a mobile banking app in signing up, I suggest you change the passwords immediately. You should also get in touch with your bank to stop any authorized payments.


How Do Fake Loan Apps Collect Personal Data From Their Victims?
Fake loan apps have been a growing concern in Nigeria, with many unsuspecting victims falling prey to their scams. One of the most troubling aspects of these fraudulent applications is how they collect personal data from their users. In many cases, this information can be used for malicious purposes, such as identity theft or financial fraud.

The methods by which fake loan apps acquire user data vary depending on the app and its creators. Some may use deceptive tactics, such as promising large sums of money in exchange for sensitive information like bank account numbers or social security details. Others might use more sophisticated techniques, such as malware that infects a user’s device and collects data without their knowledge.

In some cases, fake loan apps may even request permission to access certain features on a user’s phone, such as contacts or location services. This allows them to gather additional information about the victim beyond what was initially provided during the application process. It’s important for potential borrowers to be aware of these risks before downloading any loan app, and to thoroughly research its creator and reputation beforehand.

As technology continues to advance, it’s likely that we’ll see an increase in the number of fake loan apps and other types of digital scams. Therefore, it’s crucial for individuals to remain vigilant when sharing personal information online and take steps to protect themselves against potential threats. By being mindful of the ways in which fake loan apps operate and actively seeking out legitimate sources of credit, people can reduce their risk of becoming a victim of this type of scam.


What Is The Estimated Amount Of Money That Nigerians Have Lost To Fake Loan Apps?
Nigerians have been victimized by fake loan apps, which have caused them to lose a significant amount of money. It is estimated that Nigerians have lost over $450 million to these fraudulent activities. This has left many in financial distress and struggling to make ends meet.

These fake loan apps promise quick loans with low-interest rates, but they end up stealing personal data from their victims. They use this information for nefarious purposes such as identity theft, bank fraud, and even blackmail. The issue has become so prevalent that the Central Bank of Nigeria had to release a warning against using unverified loan apps.

Unfortunately, many Nigerians are still falling prey to these scams due to desperation for funds or a lack of knowledge about safe borrowing practices. As such, it is crucial for individuals to exercise caution when looking for loans online and only use verified platforms.

Juxtaposed against the promises of easy access to credit, the reality is bleak: countless people have fallen into debt traps because of these scams. It’s not just financial damage; being a victim can also cause emotional stress and trauma. Therefore, awareness campaigns should be launched on all media platforms to educate people about how these scams work and what steps they can take to protect themselves from falling prey again in the future.



In conclusion, being aware of the existence of fake loan apps in Nigeria is crucial to avoid falling prey to scams. These fraudulent applications aim to steal sensitive information and money from unsuspecting individuals, making it essential to exercise caution when borrowing money online. By carefully researching and verifying the legitimacy of a loan app before providing any personal or financial details, you can protect yourself from potential harm.

Some people may argue that it’s challenging to differentiate between real and fake loan apps effectively. However, this objection should not discourage anyone from taking necessary precautions when dealing with loan apps. 

With awareness and vigilance, one can stay safe while enjoying the convenience of accessing loans through legitimate platforms. Therefore, always verify an app’s credibility by checking its reviews, ratings, and reputation before proceeding with any transactions. Remember, prevention is better than cure!

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