Quick loan platforms disregarding limit rules — CBN warns

Quick loan platforms disregarding limit rules — CBN warns

Central Bank of Nigeria (CBN) says most quick loan platforms and companies are disregarding its rules on limit of exposure of customers.

Daily Trust in a recent report quotes the Apex Bank as saying that over 10 years ago, it has given instruction that no lender should give a loan to a customer of which the monthly repayment is over 33 p er cent of the monthly earning of such customer.

According to most of the customers of the quick loan platforms interviewed in the Newspaper report, they (the customers) are the ones to tell the lenders their net income. The lenders do not have the luxury of time to verify independently what the net disposable incomes of the debtors are before crediting their accounts.

According to Section 14.1b of the CBN prudential guideline for deposit money banks in Nigeria, which became effective May, 2010: “Banks shall ensure that the total monthly amortization payments of consumer loans, inclusive of housing loan, should not exceed 33.1/3 per cent of the net disposable income of the prospective borrower.”

The interpretation of the above provision, Quick Loan Arena understands, implies that if a consumer takes home N100,000 as net income in a month, his or her loan deduction cannot exceed N33,300 per month.

A senior management official at the Consumer Protection Department of CBN was quoted as saying: “It is obligatory for individuals and companies to study and understand the terms and conditions of a loan offer to assist them in choosing loan offers that are best suited to their financial capabilities and needs.

“It is important to note that all loans taken will be repaid according to the terms and agreements.

“We have regularly advised that individuals should not take loans from unlicensed individuals and institutions (loan sharks) to avoid running into financial difficulties.”

Quick Loan Arena is not a loan agency and we do not give out loan to anybody. We are a quick loan review blog that seeks to inform and educate individuals and small  businesses about instant loan opportunities to help them take informed decisions. Book A Call TODAY and speak with any of our Loan Consultants for more information! Call or Whatsapp +234 (0)803 385 7245.

Do remember to give us a feedback about your quick loan experience after the lending process is executed.

READ ALSO! Wema Bank ALAT: Salary Earner? Get Between N50,000 And N2m Quick Loan

READ ALSO! Zedvance: The Quick Loan Company That Promises N5million Credit In 5 Hours

READ ALSO! GTB Quick Credit: N500,000 – 5 Million Quick Loan Offer With 1.5% Interest

READ ALSO! Living in Canada? Get a quick loan between $300 to $1,500 in 24 hours

READ ALSO! 5 sure ways to spot quick loan scams

READ ALSO! BBNaija Dorathy Launches Lingerie Line, Says Priority Is Making Busty Women Look Good

READ ALSO! How To Empower Yourself And Generate Income From Mutual Funds

READ ALSO! Skytrend Loans Series: Getting quick loans from Page Financials

Please follow and like us:

You May Also Like

About the Author: Femi Adeoya

8 Comments

  1. 494406 24598You genuinely should experience a tournament for starters of the finest blogs online. Let me recommend this wonderful internet site! 32345

  2. 941173 876968The next time I learn a weblog, I hope that it doesnt disappoint me as considerably as this one. I mean, I do know it was my choice to read, nonetheless I really thought youd have something attention-grabbing to say. All I hear is actually a bunch of whining about something which you could fix for people who werent too busy in search of attention. 192657

  3. 158882 327266This sort of wanting to come to a difference in her or his lifestyle, initial generally Los angeles Excess weight weightloss scheme is really a large running in as it reached that strive. weight loss 58823

Leave a Reply

Your email address will not be published.