Naijaloan Review: joining the torrent of mutual fund brokers in Nigeria, Naijaloan Forum supposedly provides tiered loans online. The platform had scarcely got off its launch path before it racks up negative reviews among its predominantly Nigerian users.
Guess what? Much of the reviews highlight that the company is a scam.
Our Naijaloan Review investigates the online scam alerts about the loan broker. Also, we explain some prelims for start-up brokerages that might’ve been overlooked by Naijaloan.
To learn more about the alleged potential fraud that the Naijaloan Forum is, you can read our Naijaloan Review below.
Naijaloan Review: Overview
Naijaloan Review: as it offers referral compensation bonuses, much of the forum’s recruitment activities appear to be conducted online. Its website is undisclosed. However, there is no lack of information on the internet.
So our Naijaloan Review team turns up the following details about the company.
Without intermediaries, Naijaloan directly facilitates loan sourcing between members. It offers a members-only lend-and-borrow framework. In this scheme, you become eligible to borrow money after an initial I, 000 Naira sign-up deposit. You can then borrow as much as 5, 000 Naira sourced from an eligible member.
Subsequently, you can increase your loan credit by migrating to a 5, 000 Naira deposit cache, which sets you up for as much as 10, 000 Naira loan.
It is hard to get the sequence of loan refunds or what qualifies one for more loans. However, it appears that members get more loans depending on the volume of their deposits. Impliedly, Naijaloan is an inveterate framework. See what we mean below:
Inveterate rules in an investment platform cancel any monetary growths while increasing the company’s investor sphere. In the end, it offers nothing tangible.
If members get loans deducted from the deposits of other members, their transactions are not truly brokered by Naijaloan. On the whole, Naijaloan offers a Ponzi scheme that will only benefit them.
Note that the usual Ponzi investment trademark is to increase investor funds without shedding light on how it’s managed. After some time, the owner of the platform finds an exit excuse, probably announces a hack, and then closes all withdrawal. Clients will not get their money back.
See the next section of this Naijaloan Review for information about the website.
Naijaloan Review: Website
Like other MLM networks that lack content, the Naijaloan website is merely a blog that covers common-knowledge CRC Credit Bureau updates.
Our Naijaloan Review finds nothing remarkable about their posts. More alarmingly, the posts do not say anything about the website. A Home category option at the top of the website shows the same litany of irrelevant blogs.
As a loan broker, Naijaloan might’ve provided activity stats on the website to show clients updates about the company. Instead, Naijaloan posts CRC updates that don’t relate to its services.
Further, as CRC Credit Bureau posts are general credit/loan articles, they are not discussing the particular loan services in Naijaloan.
Briefly, our Naijaloan Review finds the following issues on the website:
The website contains no information about the owner(s) of Naijaloan.
No description of the company services appears on the website.
Nothing vouches for the credibility of the company’s brokerage.
Also, there are no office addresses or information about the company admin.
Lastly, and most suspiciously, there is no evidence of Naijaloan having an SEC license.
See the next section of this Naijaloan Review for more information about the importance of SEC licenses.
No Trade License
Naijaloan Review: despite the CRC Credit Bureau’s posts on the Naijaloan website, there is no copy of its regulation by appropriate Securities and Exchanges Commission agencies in Nigeria.
SEC authorities regulate brokerages and publicly traded assets. Loans and crowdfunding fall within the jurisdiction of SECs.
Also, if a regulated company defaults on payment/remittals contracts with clients, it will have to pay indemnifications. Unfortunately, Naijaloan Clients cannot get reparations, since Naijaloan is unregulated.
Loan Credit Levels
Without any defining clauses, the loan contracts by Naijaloan only strike as a table of loan credit levels. You merely deposit more money to borrow more. We already mentioned that this model is a Ponzi scheme.
Below are the loan levels:
1, 000 Naira deposits for Level 1 _ available for one (1) day and makes you eligible for a 5, 000 Naira loan.
5, 000 Naira deposits for Level 2 _ available for two (2) days and makes you eligible for a 10, 000 Naira loan.
10, 000 deposits Naira for Level 3 _ valid for four (4) days and gets you a 20, 000 Naira loan.
20, 000 Naira deposit for Level 4 _ valid for six (6) days and gets you a 40, 000 Naira loan.
40, 000 Naira deposit for Level 5 _ valid for ten (10) days and earns you an 80, 000 Naira loan.
80, 000 Naira deposit for Level 6 _ works for ten (10) days and earns you a 120, 000 Naira loan.
Here is How the Loan Works.
Migration to higher levels in the loan scheme depends on a requisite referral volume. The exact figure varies. However, affiliates on the first level can get a Level 2 loan if they maintain at least 5 referrals in their downlines.
Moreover, Naijaloan offers percentage bonuses for enrollment on their platform. Reportedly, none of the clients get the promised 15% ROI from Naijaloan.
Our Naijaloan Review concludes on the following notes:
Naijaloan is not a regulated platform. It is a blatant scam if it presumes to broker loans based on the scant information about its operators and services.
Moreover, the company is a proven multi-level marketing niche, despite its pretense at debt securities. For instance, Naijaloan supports an affiliate program that pays compensations to members who refer people to the platform.
Lastly, unless Naijaloan has an undisclosed investment, the current earning options on the platform is a Ponzi scheme.
Please, share your views about the company with us in the comment box.