In Nigeria, getting a loan from regular banks can be tough. That’s why many people turn to loan apps, which are quicker and easier. Most of these apps ask for your Bank Verification Number (BVN) to help them decide if they should give you a loan. But recently, people have been asking if there are loan apps that only ask for your National Identification Number (NIN) instead of your BVN. So, do such apps really exist? Let’s find out.
Why Loan Apps Ask for Your BVN
Most loan apps in Nigeria ask for your BVN because it helps them check your financial history. This means they can see how you’ve managed money in the past and if you’re likely to pay back the loan. The BVN is important because it helps them make a smart decision about lending you money.
But what about loan apps that only ask for your NIN? Many people hope to find such apps because they want an easier way to get a loan. Let’s look closer at why “NIN-only” loan apps might not be real.
Why Loan Apps Can’t Just Use NIN
- The Law Requires More Information
In Nigeria, the Central Bank of Nigeria (CBN) has rules that loan apps must follow. One of these rules is called Know Your Customer (KYC), which means the loan app must check who you are before giving you money. This helps stop bad activities like money laundering or using fake identities.
Using only your NIN doesn’t give the loan app enough information to know if you are who you say you are or if you will pay back the loan. So, apps that follow the rules need more than just your NIN to approve a loan.
- Loan Apps Want to Know if You Can Pay Back
Think of it like this: if a friend asked to borrow money, you’d want to know if they can pay you back, right? You might ask about their job or if they’ve borrowed money before. The same thing happens with loan apps. They want to know more about your ability to repay the loan.
Your NIN only tells the app who you are; it doesn’t tell them things like:
- How much money you make: Can you afford to repay the loan?
- Your credit history: Have you borrowed money before and paid it back on time?
Without this information, it’s a big risk for the loan app to lend you money.
Do Loan Apps With NIN Only Really Exist?
Based on the rules and how loan apps work, it’s clear that no serious loan app in Nigeria will give you a loan with just your NIN. If you see an app that claims to only need your NIN, be careful. Here’s why:
- They Might Not Follow the Rules: If the app doesn’t ask for a BVN or other information, it could mean they’re not following CBN rules. This is a warning sign that the app might not be trustworthy.
- Hidden Fees and High Interest: These apps may charge high fees or interest rates, meaning you could end up paying more than you borrowed.
- Privacy Risks: Your personal details might not be safe. The app could misuse your information without telling you.
What Loan Apps Really Ask For
Even if an app says it needs only your NIN, it will likely ask for more details later in the process. This can include:
- Mobile phone data: Some apps check your call history and how you use your phone.
- Bank statements or utility bills: These can help the app know more about your income and expenses.
- Guarantors: Some apps ask for someone to guarantee the loan, meaning they will pay if you can’t.
How to Borrow Safely
Always do your research before using any loan app. Stick with apps that are transparent about their terms and follow CBN rules. Apps that ask for your BVN are usually more trustworthy because they follow proper regulations. If an app promises loans with just your NIN, it’s better to stay cautious and look for other options.
In Summary:
If a loan app says it only needs your NIN, be careful. Most trusted loan apps in Nigeria need more details, like your BVN, to approve a loan. Always choose apps that follow the rules and make sure you know exactly what you’re signing up for.