Have you tried getting a loan in Cameroon and fallen into the trap of unprofessional lenders? Today, loan sharks are everywhere in Cameroon, both online and offline. This means that you have fallen victim to loan sharks in Cameroon.
Getting a Loan in Cameroon - The Dangers
Online lenders – loan apps are the easiest to fall prey to because you often see their adverts promising to give huge loans but high interest to pay. However, after promising you these loans, they use illegal means and sometimes unprofessional ways to get you to pay them back.
There are many reasons why Cameroonians fall prey to these loans. The first reason is the economic situation in Cameroon. The prices of goods and services have increased continuously over the years, and there has not been a corresponding increase in salaries and wages.
This has reduced the purchasing power of low-income and middle-income earners in the country today. Another reason many fall for loan sharks in Cameroon is the need to use the money to pay emergency bills. Although expenses like house rent and school fees can be saved ahead.
Many Cameroonians still find it difficult to pay and get loans despite the high interest it demands. So if you have not fallen for loan sharks in Cameroon, especially the online loan app, you need to consider yourself lucky. This article will guide you in identifying and avoiding loan sharks in Cameroon.
Read also: Money Lenders in Cameroon.
Who is a Loan Shark?
A loan shark is a money lender who offers loans at extremely high interest and has strict terms of collection upon customers' failure when they cannot pay up. Loan sharks generally operate outside the law. They will often bend the law to get their money back.
How to Identify and Avoid Loan Sharks or Predatory Money Lenders in Cameroon
Here are successful steps to take to identify predatory money lenders in Cameroon.
Lack of Communication
This is one of Cameroon's best ways to recognize loan sharks. They will not tell you before getting the loan, and they will not tell you after getting the loan. They do not communicate well because they do not tell you their line of action if you do not pay up on time.
All they do is scare you about the consequences if you do not pay up your loan on time. The reason why loan sharks communicate poorly with their customers is that they have poor organizational structure and guidelines on how to collect back their money.
Read also: MoMo Cash in Cameroon
Unauthorized Access
Many of the loan sharks in Cameroon will demand that you download their apps before you can get a loan from them. When you download these apps, there are many terms and conditions they force you to agree on before giving you a loan. This is another way you can identify loan sharks in Cameroon.
The worst part about this is that many do not read these terms and conditions; they just click 'I agree to go to the next page. By agreeing to these terms and conditions, you have given the loan sharks permission to access every information on your phone.
They will access your contacts to call your family and friends if you do not pay up on time.
High-Interest Rates
This is the most popular way you can recognize loan sharks in Cameroon. Commercial banks in Cameroon charge 10 % – 15% per annum, but loan apps charge 25% – 40% per annum. This could even be weekly or monthly.
Loan sharks issue high interest on the loans they offer you with minimal time to pay back. Some even remove their interest from the loan before giving it to you. You can quickly identify online loan apps that are loan sharks by checking the review of their apps on the Google play store or iOS store.
If these loan apps are wrong, you will notice this from the comments and reviews. So if you have no valid reason, this is an excellent reason to avoid loan sharks in Cameroon.
BVN Exposure
The main reason why you should avoid loan sharks in Cameroon is for this reason. All loan sharks in Cameroon demand your bank details, especially your BVN, to give you a collateral-free loan.
Although this sounds like a reasonable offer, they use it against you when you do not pay up on time to blacklist you from getting loans from other credit bureaus. And when they do not do this, they sell your BVN and further bank details to scammers to make money.
Unreasonable Repayment Plan
You should avoid loan sharks in Cameroon because of their absurd repayment plan. Many of them do not explain your repayment plan and those that do give you insane programs that do not meet up with your expectations.
When many cannot meet up with paying back the loans, they have to borrow from other loan apps to pay back, which makes many lenders trapped, and in the long run, they get addicted to borrowing loans.
Conclusion
There are many obvious reasons why many Cameroonians get loans from loan sharks. However, desperation has been proven to be the main reason. It is essential to verify the loan apps you want to borrow money from – making sure they are legitimate – licensed by the government before you go ahead.
Suggested: Small Business Loans in Cameroon.