What happens when you can’t pay back money you’ve borrowed from an online loan company.
The whole point of taking a loan is being able to pay back on an agreed date, usually with some interest. You can get a loan from your bank or other financial institutions but what happens when you can’t pay back on time?
Taking loans is increasingly commonplace these days and a lot of youths have embraced the availability of this concept. However, it gets quite messy when you can’t pay back a loan.
When you apply to an online loan company, they request for access to important data like card details, means of identification and BVN. Sometimes you have to install an app on your phone to be able to get the money you need.
It’s quite easy to get funded but it gets extremely unpleasant when you can’t pay back on time along with the interest (usually 10-30%).
When borrowers don’t pay back on time, loan recovery agents take it up legally. They call their phone contacts as the loan app usually requires borrowers to grant it access to contacts.
Online loan sharks hire loan recovery agents to get what you owe them once the repayment period is over. They also report defaulters to the credit bureau, limiting those borrowers from obtaining any loans from any financial institutions in Nigeria.
Loan defaulters can now be blacklisted with the use of BVN. They have your bank/card details and can retain the right to deduct money from your account whenever it is funded.
The financial institutions in Nigeria have tough loan conditions and so young Nigerians continue to patronize online loan sharks with less tedious measures.
Although these online loan sharks have less roadblocks, failure to pay back within agreed timeliness can have serious consequences. It can affect their future financial security, as well as their social image.
If these financial institutions are not regulated, they could employ such crooked strategies to get their borrowers to pay.
There is no need to borrow money if you are not capable of paying back. It can have serious consequences.
Christopher Ayo.
