What Does It Mean To Be Blacklisted For A Loan In Nigeria? Top 7 Points

A blacklist is a database that indicates defaulters who haven’t paid up their debts within a stipulated time frame given by their loan app or any other financial institution. When a person’s name is on a blacklist, it simply means the person has defaulted in payment to their creditor and has thus been blacklisted for a loan in Nigeria.

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Blacklisted for A Loan In Nigeria
Blacklisted for A Loan in Nigeria

It is possible you may have borrowed instant cash from different loan apps and lending companies in Nigeria. If you fail to pay back as at when due, regulatory authorities make it possible for your lender to report your name and BVN as a loan defaulter to the credit bureau with veritable evidence. If your name gets included, you may be denied loan access from any loan app or online or onsite lender in the future in Nigeria.

Here’s how to clear your name from a Negative Profile After Being blacklisted for a loan In Nigeria.

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  • Pay your debt: 

The first step to clearing your name after being reported as a defaulter is to pay up what you owe. If you are in a financially difficult situation, ensure you contact your lender to discuss payment options that could ease the burden of paying the loan. Choose a payment plan that will work best for you and follow up until you settle your debt. You can also set up automatic payments on the due date to avoid missing a payment.

  • clearance certificate/letter of non-indebtedness

Should you have a clearance certificate/letter of non-indebtedness, you can forward the letter to the credit bureau for verification from your lender.

  • Contact the Credit Bureau

After a borrower has paid off his/her debt, it is legally obliged of the credit providers to notify the credit bureau that the borrower has paid off his/her debt and request for the borrower’s credit profile to be updated to the current status.

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blacklisted for a loan in Nigeria
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What Does It Mean To Have A Negative Record Following Being Blacklisted For A Loan In Nigeria?

So, what exactly does it mean to have negative information? What does it imply to be blacklisted for a loan in Nigeria or anywhere else for that mattter. It means that institutions/credit grantors you may approach will deny you credit because you have a negative report on your credit profile. You may therefore not be able to meet your short or long term needs and may access credit facilities from other lenders at a higher interest rate because you are categorized as high risk. You may also be denied employment opportunities if judgment was taken against you.

How To Get Removed After Being Blacklisted By A Loan App In Nigeria

If you have been reported with negative information after being blacklisted for a loan in Nigeria or by any financial institution for that matter and have paid the debt for which you were listed, you may contact your lender to provide this update to the credit bureau or apply to the credit bureau and request for this update to be done. Either course requires the lender or credit grantor to provide this update to the bureau. The key here is for the update to happen as names are not typically removed from the credit bureau database.

FREQUESTLY ASKED QUESTIONS (FAQs) Relating To Being Blacklisted For A Loan In Nigeria

1. Can you get a loan if you are blacklisted?

The long answer is that it depends on the type of loan you want and your reasons for being blacklisted in the first place. If you are trying to get a personal loan from a bank, then chances are that lenders will deny your application because they will want to know why you were blacklisted in the first place.

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2. How long does it take to be cleared when blacklisted?

Your credit report is a record of your payment behaviour. It tracks all your accounts and indicates where, over a period of two years, you have missed payments or gone into arrears on an account. Then after two years, this adverse information simply disappears.

3. How do I clear my name from Nigeria credit bureau?

Contact the Credit Bureau.
Your email should carry the following details; your Full Name, Phone Number, Bank Verification Number (BVN), gender, evidence of payment and Clearance certificates (if any). This process might take 2-5 working days to be resolved so do not hesitate to follow up with the Credit Bureau.

4. How do you remove your name After Being blacklisted for a loan in Nigeria?

Pay your debt:

The first step to clearing your name from being reported as a defaulter is to pay up what you owe. If you are in a financially difficult situation, ensure you contact your lender to discuss payment options that could ease the burden of paying the loan.

Clearance certificate/letter of non-indebtedness

Should you have a clearance certificate/letter of non-indebtedness, you can forward the letter to the credit bureau for verification from your lender.

Contact the Credit Bureau

After a borrower has paid off his/her debt, it is legally obliged of the credit providers to notify the credit bureau that the borrower has paid off his/her debt and request for the borrower’s credit profile to be updated to the current status.

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5. What are the consequences of being blacklisted for a Loan in Nigeria?

The consequences of being blacklisted for a loan in Nigeria are that other financial institutions and loan apps will reject your loan application. In addition, being blacklisted for a loan will negatively affects your credit score which might prevent you from getting any future credit.

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6. How do I check if I am blacklisted?

The information about whether you have been blacklisted for a loan can be found in your credit profile as held by the Major Credit Bureaus in Nigeria. A blacklist is a database that indicates defaulters who haven’t paid up their debts within a stipulated time frame given by their lender. When a person’s name is on a blacklist, it simply means the person has defaulted in payment to their creditor. So if you have refused to pay your loan for any reason, your name may have been blacklisted by the lender and included in the list with the relevant credit bureau.

7. How can I check my credit history in Nigeria?

Every Nigerian is entitled to one free Credit report every year from any registered Nigerian Credit Bureau. To get a free credit report in Nigeria, use any of the following sources: Dial the USSD code *565*8# on your mobile phone to get instant Credit reports from CRC Credit Bureau.

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About the Author: Femi Adeoya

Mr Femi Adeoya is a Chartered Forensic Accountant and a Certified Fraud Examiner. He has over 20 years professional work experience in accounting, finance and business management processes. As an Accounting Software Expert, he has implemented and supervised accounting solution set up of over 50 small and medium businesses in Nigeria. As a passionate blogger, Mr Adeoya is an ardent writer and communicationist. He is the CEO of QUICK LOAN ARENA (quickloanarena.com), the number 1 loan apps review website in Nigeria. He is very passionate about the quick and instant loan industry in Nigeria and has written over 200 reviews on different loan apps and digital banks in Nigeria, USA, Canada and UK.

1 Comment

  1. Good morning my love brother, you are the best manager that you know the condition of people, i wish you are the CBN Goveno because you know how to talk with people, may God continue to bless you and your family, want day you will be a Nigerian prisenden to help the masses.

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