Dangers Of Taking Loan From Unlicensed Money Lenders

While some people count the growing numbers of money lenders  in Nigeria as big opportunity for people to have quick access to loan, the inherent dangers in such unapproved money lenders far outgrow it’s benefits.

High interest on loans

 You may end up paying far more in interest than you would with a legal, regulated lender. Some of them charge between 30 to 40 percent interest in a month.

Problem of intimidation and harassment 

Falling behind on payments can lead to harassment or threats. Some of the unlicensed money lenders use unconventional means to recover debt when the borrower defaults in payment.

Increasing debt 

Loan sharks might increase your debt or add charges unexpectedly, even if you’re making regular payments.

Lack of transparency 

They often refuse to give clear details about the loan, such as interest rates and repayment schedules.

May always use cash transactions

While some now use bank transfers, most prefer cash to keep transactions off the record.
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