Search
Close this search box.

HOW TO AVOID LOAN SCAMS IN NIGERIA: 4 KEY RED FLAGS

Sterling Bank
Published: January 3, 2024

Share this post 👇🏽

Facebook
Twitter
LinkedIn
Red flag

Loans are a great way to finance your goals, support your businesses, or even bring your ideas to life. However, it’s important to be careful while accepting loans to avoid costly mistakes or scams. Nearly 48 percent of scams are financial and at a time when it has become easier to access loans, it is equally critical to exercise caution to avoid loan scams.

 

Avoid loan scams in Nigeria

 

Here are some tips to help you protect yourself:

 

1. Never sign contracts you do not understand:

 

Please read the contract, read it again, and read it two more times before you sign. A contract is a legally binding agreement with strict penalties if defaulted. Do not agree to any terms and conditions you do not understand, including interest rates, fees, and repayment terms.

 

2. Watch out for red flags:

 

Some common red flags are lenders who offer loans with no credit check or low interest rates that seem too good to be true. If it sounds too good to be true, it is likely a scam.

 

3. Only borrow from reputable lenders:

Conduct some research to make sure the lender is licensed and reputable.

 

Avoid loan scams - ask questions

4. Don’t be shy to ask questions:

If you don’t understand something, ask the lender to explain it to you. If they give half-baked answers or refuse to share full information, assume it is a red flag. Better safe than sorry.

 

It is equally important to be aware of your responsibility as a loan borrower; one of the most crucial is to make your payments on time.

SPONSORED

Ad

 

 

In addition to making your payments on time, you are also responsible for keeping your lender informed of any changes in your circumstances. For example, if you change your address or phone number, notify your lender immediately. Also, inform your lender if you experience financial difficulties that may hinder your ability to fulfill your obligations.

At Sterling, we are committed to protecting our customers’ interests. Here are some ways we do that:

  • We provide all our customers with a Key Facts Statement (KFS): This document summarizes the key terms and conditions of the loan clearly and concisely.
  • Informed Decisions: Our comprehensive loan contracts detail everything you need to know, from features and risks to repayment terms and fees.
  • Transparent Fees: We only charge lending fees on the money you receive. There are no hidden costs.
  • Flexible Repayment: Repay early without penalty for variable rate loans. Choose what repayment plan works for you.
  • Free Monthly Statements: Access your loan statements anytime, anywhere at no cost.

 

If you’re interested in taking a loan, choose Sterling. We’re the bank that puts your interests first.

Share this post 👇🏽

Facebook
Twitter
LinkedIn
4.1 15 votes
Article Rating
Subscribe
Notify of
guest
13 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Akanni Olugbemi Ogunremi
Akanni Olugbemi Ogunremi
4 months ago

Thanks for your support

Ohwo Deborah Omoerere
Ohwo Deborah Omoerere
4 months ago

Thank you very much for this timely information, l have indicated interest on loans severally but no positive response. Is ok.

Olabode oluyemi festus
Olabode oluyemi festus
4 months ago

Thank you so much for your advice

Abubakar
Abubakar
4 months ago

Thank you for showing me
The way that I will protect my account

Chukwuonye Emmanuel Chiemeria
Chukwuonye Emmanuel Chiemeria
4 months ago

Dear sterling Bank,
How can I get a loan on your platform

Nshiogu chibuike ogwale
Nshiogu chibuike ogwale
4 months ago

Thanks for the information I really appreciate and I will not make the mistake

Muinat Adeola
Muinat Adeola
4 months ago

It’s lovely and I love sterling

Tubotamuno Tammy Josiah -Tyger
Tubotamuno Tammy Josiah -Tyger
4 months ago

Thanks 👍 your information helps me on the subject matter.

Ojubanire adewunmi abiola
Ojubanire adewunmi abiola
4 months ago

Thanks for the great concern Abt ur customer service ☺️☺️

Princess Ngozi Orji
Princess Ngozi Orji
4 months ago

Wonderful. Thanks Sterling bank for keeping us abreast on how to avoid loan scams.

Muhammad Aliyu
Muhammad Aliyu
4 months ago

That’s why I chose starling bank

MERVIN OGHENERO SIMON
MERVIN OGHENERO SIMON
4 months ago

Well Done I like this information.

Dauda Kimaskhara Ishaya
Dauda Kimaskhara Ishaya
3 months ago

Thank you very much for the information,i urge you to do better because up till now the case of froud is on the increase

Suggested Reads

Subscribe to Newsletter

Be the first to know when we publish new content! Join the Newsletter today.

13
0
Would love your thoughts, please comment.x
()
x
whatsapp