Fake Loan Apps – Why You Shouldn’t Borrow From Sokoloan [The Hidden Truth]

Fake Loan Apps And Why You Shouldn’t Borrow From Sokoloan.

As much as you may be in dire need of a loan. It is important and reasonable to calm down and check out the loan app or loan platform you’re about to borrow from. You can put yourself in “big trouble” if you don’t.

Why? There are fake loan apps that are ready to extort individuals who are ignorant of their schemes.

People who take loans are not supposed to be duped, threatened, or defamed. But it saddens Nigerians that this has been the order of the day from these fraudsters.

In today’s article, I’ll share with you some of the ways to identify a fake loan app but before I do that I need to show you why you shouldn’t borrow from SokoLoan.

What Is SokoLoan?

SokoLoan is a fake loan app that charges crazy high-interest rates on their loan. The app was taken down by Google from the Google Play Store when it was discovered to be a sham. It is a good thing that it was taken down. 

Aside from their crazy and inhumane high-interest rate, SokoLoan goes as far as illegally accessing and downloading customers’ contact lists. They resort to pressuring and cyber-bullying customers who default on their loans. Either old or new customers.

How Does SokoLoan App Have Access To Your Contact List?

When you download the SokoLoan app on your phone, and you open it to create an account with them, the SokoLoan app illegally automatically downloads all your contact list and images to their database after asking you to give them permission to your contact.

They go as far as using an artificial intelligence bot (Ai) to sort out the contacts according to related family names or frequently called numbers.

They sort the numbers to know the people that their customers call the most. These are the first set of people they call to pressure customers who default on loans.

However, this is wrong and it is a punishable offense. This is because there is no agreement between SokoLoan and customers that gives them the right to secretly download their contact lists or access their private information. This is why you should be careful of the apps you download.

Is It Legal For SokoLoan App To Invade Your Privacy?

The answer is, No!

It is not proper and as earlier stated, it is a punishable offense.

It is not legal for any loan app to invade your privacy by downloading your contact list to their database even after asking you for permission to access your contact. Why would you even want to permit something like that?.

Although some loan apps will ask for your permission to access your contact to make sure that you won’t run away after taking the loan. Loan platforms like these will only take necessary actions after making consecutive and appropriate calls or looking for ways to reach you to no avail.

Was SokoLoan Interest Rate That Bad?

SokoLoan basically (almost) doubles the price of their loan as the interest rate. It is one of the most insane Interest rates that I’ve seen.

A true life story revealed how a woman committed suicide over defaulting on her loan due to a crazy interest rate. 

Her initial loan was 8000NGN, however, an interest of 7000 NGN was added to her loan and she had just two weeks to pay it back. First, the interest rate here is too high and it revealed SokoLoan’s desperation to make money off ignorant individuals who fall into their trap.

 4 days after she defaulted on the loan, SokoLoan started calling her while also sending her threatening messages. By the end of the 4th day, They had already called 49 of her contacts before she eventually took her life.  

Does SokoLoan Still Operate?

Fortunately, their ruse was uncovered and the app was deactivated.

However, it is a pity that there are still several fake loan apps operating in Nigeria. Who knows, SokoLoan may have rebranded itself to a new loan app using a different name.

What Other Fake Loan Apps Are Out There?

The Fake loan apps mentioned in this article should be avoided like the plague, don’t even check them out at all. We’ve done that for you.  

An investigation, last December, revealed how these platforms offer short-term loans (some with crazy interest rates) to help individuals meet urgent needs, but resort to unprofessional measures of harassment, cyberbullying, and breach of data privacy of their customers who may have defaulted in loan repayment.

Here’s a list of them: 

• Kashkash
• EasyCredit 
• GoCash  
• Speedy Choice
• Easy Moni.
• Cash Mall
• CashLion
• FastMoney
• LendCash
• BorrowNow
• LCredit
• NairaPlus
• 9ja Cash
• Cash Wallet
• GGMoney
• 9Credit
• Sokoloan
• Ease Cash
• ForNaira
• GotCashger
• NCash
• GotoCash

How Do I Detect Fake Loan Apps?

The easiest way to detect fake loan apps is through their interest rate.

The interest rate for an average commercial bank loan in Nigeria is 24 percent per annum. However, fake loan apps’ interest rates are between 75 percent and 400 percent. Once you notice this, know it’s a red flag.

Other factors you should watch out for:

1. Small Loan Amount:

Most fake loan apps will still offer you a small loan amount even if you meet all requirements.

Note, not all loan platforms that offer small loan amounts are fake. Sometimes, it is because you didn’t meet all the requirements or you have a poor credit score. If you want to know more about credit scores, check out some of my articles.

For fake loan apps, you may have a good credit history, an appropriate credit score, and even fill in your correct info, yet you’d be offered a small loan amount. Apps like this are fake

2. Killable Interest Rate: 

Pure red flag! 

Sham loan apps will give you an interest rate that clearly shows that they are desperate to scam you and any other person who falls into their hands. Their interest rate is like another loan on its own.

For example, if you want to take a loan of 8000 NGN; fake loan apps may add an interest fee of 7000 NGN. Yes! It happens.

Interest rates like this one should be a warning for you. Don’t fall for their scam.

People who are in dire need of a loan often fall into the hands of these scammers, this should not be.

Whatever it is you need the loan for, you can always relax and research before going ahead to take loans from any app or platform.

3. Short Loan Repayment Time:

Some loan apps won’t give you more than 7 days to repay the loan, have you come across any? High interest, short loan repayment time, plus small loan amount. 

That’s like 3 red flags in one. Don’t go for it, they’ll benefit from you way more than you will from them.

Sham loan apps go as far as cyber-bullying their customers who default even after not giving them enough time to pay back.

They threaten customers, send insulting messages, and tag them as criminals online.

4. Card Verification Fee:

May look like a small fee but it’s a perfect way to extort. Imagine charging a card verification fee of 50 naira to 7000 people. Do the math. Red flag!

Conclusion:

SokoLoan may have been taken down but there are still many other fake loan apps out there and they are bent on ridiculing whoever falls into their trap.

You can check out some of my other articles, it promises to expose lenders and all you need to know about loans. In one of them, I explained in detail the factors that can help you detect fake loan apps.

Run from the loan apps listed above and any other fake loan app you discover. Don’t be in a rush to take loans without making appropriate research on your lenders.