What are loan sharks? And why are they trending on Nigeria?
Loan sharks are those micro and medium loan companies who make loans accessible easily but at crazy high rates. And they usually resort to life threatening and illegal ways to ensure repayment.
Many of these online loan apps fall in this category. Sokoloan, quick online loan app etc.
Have you patronised them before? Can you share your experiences?
Also, CBN says there's no need to patronise these micro loan sharks, claiming that avenues to borrow from legitimate organisations have been put in place. Is this true? Do banks readily give micro and medium loans to Nigerians?
https://consumerconnectng.com/19649CBN warns consumers against ‘loan sharks’, urges legal avenue to seek funds
January 26, 2022
*The Central Bank of Nigeria warns there is no need for consumers of financial products and services to approach ‘loan sharks’ because the apex bank has created the avenue through which they can raise funds in the economy
The Central Bank of Nigeria (CBN) has cautioned Nigerians against seeking credit facilities from the ‘loan sharks’ for financial purposes.
ConsumerConnect reports the Bankers’ Bank stated there is no need for consumers of financial products and services to approach such loan sharks because the CBN has put in place the avenue through which they can raise funds in the economy.
The Governor of CBN, Mr. Godwin Emefiele, gave the warning while addressing reporters at the end of the Monetary Policy Committee (MPC) meeting held Tuesday, January 25, 2022, in Abuja, FCT.
Emefiele stated: “On loan sharks, what we have done is to say that there is no need for you to go to loan sharks for a loan.
“People normally will go to loan sharks because they are desperate; they cannot access the bank.”
The CBN Governor also said: “We found in this group mainly people who are vulnerable; the people whose households need some small amount of money to do their businesses but they cannot access bank finance.
“As a result they go to loan sharks who charge them … twice the principal just within 90 days and if you don’t, they seize your property or seize your bicycle.”
He restated that there is no need for people to go for loan sharks because the CBN has put in place the avenue through which they can raise funds.
The CBN Chief as well listed them to include the Microfinance Banks (MFBs), and target credit facilities established by the government to cater to the needs of the operators of Micro, Small and Medium Enterprises (MSMEs).
Emefiele further said: “You don’t have to know anybody; just go to the portal, fill the form, send your data. And if it is correct, you will be able to access loans.”
“We have a large number of testimonials from people who have accessed the facility without knowing anybody and they have benefited from it.
“The bank is making effort to stop loan sharks, and when these people are found, they will be dealt with mercilessly,” stated he.