Sokoloan, 9ja Cash: Avoid these apps like a plague.
Due to the level of hardship around the world, many people opt for loans in order to survive. While some are resilient and would rather make do with what they have, others prefer to get loans, sort out their needs and pay back later.
However, the sad thing about collecting loans is that it creates set backs. Our needs have to be met on a daily basis and money plays a crucial role in that regard. What happens when the money is available but goes out to creditors? It’s one out of two things: make do with what you have or get more loans. If one chooses the latter, there’s a possibility that it’ll be an endless cycle.
Sadly, some organizations are taking advantage of the desperation of people to not only defraud them by charging unrealistic interest rates but to also defame them in cases where they do not pay up at the set time.
Some of these organization make enticing offers such as giving one the opportunity to collect loans without collateral within a very short time — as short as 3 minutes.
While this may sound like a brilliant idea on the surface, it is not as dazzling as it seems. What are the terms and conditions? What is the interest rate? What happens if one doesn’t pay at the set time? These are issues that need to be critically considered.
Now concerning Sokoloan and 9ja cash which are lending companies in Nigeria (one is a subsidiary of the other), it seems that their terms and conditions aren’t truthful.
According to what they say on their app as regards interest rates, “loans range from ₦5,000 to ₦100,000 with terms from 91 – 180 days. Interest and service fee ranges from 4.5% – 34% with an equivalent monthly interest of 3% – 29% and APR of 29% – 365%.”
Here’s how they break it down:
“If you choose a 6-month loan and borrow N 1,000, Sokoloan charges an interest rate of 4.4% per month. And the interest rate is 26.4%, we would charge you N263 as interest of 6-month repayment period. Total amount of repayment is N1,263.”
However, this isn’t the case as they charge over 50% interest rate for a very short period– as short as 10 days! Can you imagine?! The sad part is that no one knows till they’ve fallen victim. Yet, their terms and conditions read “91-180 days”.
I wouldn’t have known about it till it befell a close friend of mine who out of desperation collected a loan of N14,000 and was expected to refund N22,000 in 3 weeks. 3 weeks not months! Meanwhile, they state that the interest on N1,000 for 6 months is N263. Shouldn’t the interest rate on N14,000 for 6 months be N3,682? How then is the interest over 50% for a period of 2 weeks? If this isn’t fraud, I don’t know what is.
Unfortunately for my friend, the money he was expecting didn’t come in on the due date and he was being dragged by the lending company. They made endless phone calls and threats to him and proceeded to send the following messages to his contacts:
“This is to inform the general public that (name)(phone number) is a chronic debtor on the run with company money. Consequently, it is advised to stay away from him until he is arrested.”
“Suspected criminal by name(xxxx) with phone number (xxxx) carted away with company’s money and the police are out searching. Please notify us if found, or contact any of the family members please.”
Just look at the slander all because of a small loan! What would have happened if he collected millions? We can only imagine.
For this reason, I decided do a research to find out what others had to say. Three things stood out: complaints about high interest rates, threats and unreachable customer service. I also discovered that there is no fixed interest rate. It seems they charge whatever they feel like. For instance, someone said he was charged a little over 3,000 on a loan of 10,000 for 2 weeks. My friend was charged 8,000 on a loan of 14,000 for 3 weeks. Below are screenshots of some reviews:
Now, we can clearly see that this is contrary to what they claim. You’re probably wondering why anyone would still collect loans after reading these reviews — trust me I was thinking same. But after taking a second look, it made a little sense.
First, the app has a 4.6 out of 5 rating— not many people would care to or have the patience to read the reviews simply because they make judgements based on rating. I mean, if it’s so terrible it shouldn’t have a high rating ( so they think). Secondly, the positive reviews are so captivating that one would easily fall into the trap especially when desperate. Obviously, they are written by those you have had no issues repaying as at when due.
But like we all know, one won’t truly understand pain till they fall victim. Life can happen at anytime and ruin plans — I do not think any of these people collected loans with the aim of not paying back. Why then should they be treated like criminals or even worse?
I read somewhere that a lady committed suicide because of the harassment, embarrassment and insults she received simply because she couldn’t pay her debt. It is said she collected N8,000 to pay back N15,000 in 14 days. That’s almost 100% interest in 2 weeks! This is not acceptable and shouldn’t be tolerated.
My advice to everyone who is reading this to try as much as possible to make do with what you have but if you can’t, lending from an individual is by far better than lending from these companies. As one of the reviews read, “if you love your peace, avoid this app”. Save yourself, save your reputation. Avoid Sokoloan, 9ja Cash and the likes! Avoid them like a plague! Do not let desperation lead you into a trap.
Have you used Sokoloan or 9ja Cash? What Share your thoughts!
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