What Happens If Online Loan Is not Paid In Nigeria?

What Happens If Online Loan Is not Paid In Nigeria?

What Happens If Online Loan Is not Paid In Nigeria?

Read all about what happens if online loan is not paid in Nigeria.

Online loans have helped many Nigerians to settle their financial emergency, with the aim of repaying the loan with interest. However, some people fail to repay their loans at the given time, due to lack of funds at that moment or unwillingness to pay them back.

First and foremost, we are not encouraging anyone to take an online loan without a repayment plan. If you must take an online loan, ensure you can repay the loan with interest before the duration date. Else avoid taking a loan you can’t repay or are unwilling to pay back at the due date.

The law on online loans states that “no lender should harass any user who defaults in repayment of the loan”. However, the lender has the right to report and send the defaulter’s detail to the Credit Bureau.

This article will discuss what happens if an online loan is not paid in Nigeria. Let’s get started.

Read my post on can I go to jail for not paying online loans

What Happens If Online Loan Is Not Paid In Nigeria?

The following is what would happen if the defaulter fails to pay their online loan.

Warning Message

When it’s the last day for your loan to be repaid. Most online loan agency sends you a reminder msg that you need to pay up your loan or the loan duration date will be extended.

Additional Interest on Loan

When the loan passes its duration date, the online loan agency gives the defaulter extra days or maybe a month to pay back. But with another interest on the previous loan. However, each online app has a different grace period offered to defaulter before taking action but the maximum grace period is 3 months.

Report To The Credit Bureau.

If the defaulter refuses to repay the loan after the grace period. The online loan agency reports the defaulter to the Credit Bureau to blacklist the defaulter BVN. Some Defaulter feels reporting to the credit bureau does not have any threat to them. But unfortunately, it does, if your BVN is blacklisted by the Credit Bureau. It would affect your credit score, so you might not be able to take loans from banks or other online apps. As well as you would not be allowed to travel to other countries except your BVN is removed from the Blacklist.

Offensive Messages Are Sent To Your Contact.

Although online loan apps sending offensive msg to your contact is wrong, this is what most online loan apps do. When new users register on the loan app, they usually request permission to access your contact, after giving them access they tend to store the user contact on their database. If the defaulter is unable to repay his/her loans, the online loan agency uses a random number to send an offensive msg to the defaulter contact.

How To Stop Loan Apps From Accessing Your Contacts

Read my post on how to remove bvn from loan apps

For Android

  • Click on the phone setting
  • Select apps & notification
  • Select the loan app
  • Click on permission and disable the permission for your contact, camera, location, and microphone.

For iPhone

  • Click on the phone setting
  • Search for loan app then turn off the permission.


Can an online loan app block my BVN?

Online loan app does not have the power to block defaulter BVN, only the central Bank of Nigeria can block BVN. Online loan apps can only report defaulters to credit bureaus to blacklist the defaulter BVN.

Is defaulting on a loan a crime in Nigeria?

Defaulting on a loan is not a criminal offense but it is a civil matter. This means defaulters can’t go to jail for defaulting on a loan.

What happens if I don’t pay a fair money loan?

Fair money would report to the credit bureau, affecting your credit score negatively.

Conclusion: What Happens If Online Loan Is not Paid In Nigeria

Due to the economic situation in Nigeria, many people are forced to use an online loans to ease their condition. However, before applying for an online loan always have a plan to pay back, to avoid embarrassment from online loan agencies.

Thank you for reading this article and we hope you got a lot of helpful information from the post. Please share and comment.



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