What are loan sharks that CBN warns Nigerians against?

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eMade
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Location: Abuja
 

February 13th, 2022, 1:12 pm

Recently, you should have seen many news and development in the news stating issues relating to LOAN SHARKS. The CBN has warned Nigerians to stay off the claws of these sharks.
Loan-Shark-cc.png
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?

For reference:
CBN 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.
https://consumerconnectng.com/19649

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Sally
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Location: Kaduna
 

February 13th, 2022, 1:17 pm

Yea, i tried Migo loan using the ussd code
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eMade
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February 13th, 2022, 1:20 pm

Sally wrote: February 13th, 2022, 1:17 pm Yea, i tried Migo loan using the ussd code
Migo loan don't do like sharks. Though they are micro loans. I think they are a bit ok.
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Champ123
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February 13th, 2022, 1:27 pm

I just saw this advert on Google via Bestnaija. This must be one of the loan sharks.
Screenshot_20220213-132503~2.png
Life is simple. Seriously. :mrgreen:
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eMade
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February 13th, 2022, 1:28 pm

Ndoma wrote: February 13th, 2022, 1:13 pm Wow first time seeing this
Are you serious? You've never heard of loan sharks or you've not heard of the CBN warning?
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Sally
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February 13th, 2022, 1:28 pm

eMade wrote: February 13th, 2022, 1:20 pm
Sally wrote: February 13th, 2022, 1:17 pm Yea, i tried Migo loan using the ussd code
Migo loan don't do like sharks. Though they are micro loans. I think they are a bit ok.
their interest are really high and time range short. Any ways they stil try
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eMade
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February 13th, 2022, 1:30 pm

Sally wrote: February 13th, 2022, 1:28 pm
eMade wrote: February 13th, 2022, 1:20 pm
Sally wrote: February 13th, 2022, 1:17 pm Yea, i tried Migo loan using the ussd code
Migo loan don't do like sharks. Though they are micro loans. I think they are a bit ok.
their interest are really high and time range short. Any ways they stil try
With high interest rate and short repayment time, they they are sharks.
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Sally
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February 13th, 2022, 1:35 pm

eMade wrote: February 13th, 2022, 1:30 pm
Sally wrote: February 13th, 2022, 1:28 pm
eMade wrote: February 13th, 2022, 1:20 pm
Sally wrote: February 13th, 2022, 1:17 pm Yea, i tried Migo loan using the ussd code
Migo loan don't do like sharks. Though they are micro loans. I think they are a bit ok.
their interest are really high and time range short. Any ways they stil try
With high interest rate and short repayment time, they they are sharks.
thanks for the enlightenment
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NiceGuy
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Location: Lagos
 

February 13th, 2022, 1:37 pm

The CBN's claim shows that the government is truly disconnected from the realities of the Nigerian masses and their means of survival. There are millions of poor Nigerians wallowing in debt and poverty. The CBN is not truthful
I'm really not that nice... :mrgreen:
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eMade
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February 13th, 2022, 1:51 pm

NiceGuy wrote: February 13th, 2022, 1:37 pm The CBN's claim shows that the government is truly disconnected from the realities of the Nigerian masses and their means of survival. There are millions of poor Nigerians wallowing in debt and poverty. The CBN is not truthful
True! To add insult to the injuries, many scammers are taking advantage of the deplorable financial situation to defraud numerous Nigerians in the name of offering loans. I saw one experience like that shared on Bestnaija recently. Too bad.

CBN have no idea
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Sally
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February 13th, 2022, 2:12 pm

eMade wrote: February 13th, 2022, 1:51 pm
NiceGuy wrote: February 13th, 2022, 1:37 pm The CBN's claim shows that the government is truly disconnected from the realities of the Nigerian masses and their means of survival. There are millions of poor Nigerians wallowing in debt and poverty. The CBN is not truthful
True! To add insult to the injuries, many scammers are taking advantage of the deplorable financial situation to defraud numerous Nigerians in the name of offering loans. I saw one experience like that shared on Bestnaija recently. Too bad.

CBN have no idea
true fact
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TitanKenneth
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Location: New York
 

February 15th, 2022, 2:04 am

one of the reasons i say a big no no to loans
Follow me on facebook "Titan Kenneth".
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Coded20
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Location: Ondo
 

February 15th, 2022, 7:42 am

Loans nah scam
No Love💔 In The City Just Make Money🤑 And Pray Not To Die Young🙏
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Sally
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Location: Kaduna
 

February 15th, 2022, 7:27 pm

Loan no be scam, na loan sharks be scam
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yaroummu
Senior
Location: Kaduna
 

April 1st, 2022, 8:07 am

Thank God i dont use such,anyway its good to be warned
Cool me
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