The rise of loan sharks in Nigeria has reached alarming levels. It’s almost impossible to go a week without receiving a tempting loan offer via SMS or WhatsApp.
But here’s a free and crucial piece of advice—don’t fall for it! The best way to deal with loan sharks is to avoid them completely.
Loan sharks are unlicensed money lenders who impose outrageous interest rates and often resort to threats, harassment, and defamation to recover their money. Let’s take a closer look at the many reasons you should never borrow from them.
1. Exorbitant Interest Rates
One of the biggest red flags of loan sharks is their ridiculously high interest rates. While legitimate lenders offer structured repayment plans with reasonable interest, loan sharks prey on desperate borrowers by imposing interest rates that sometimes exceed the borrowed amount within a short period.
2. Harassment and Threats
Loan sharks are notorious for aggressive debt collection tactics. Their agents are trained to be rude and threatening, bombarding borrowers with insulting calls and messages once repayment is due. Some don’t even wait until the due date before launching their intimidation tactics.
Since they operate outside the law, they cannot use legal channels to recover their loans. Instead, they resort to blackmail, threats, and harassment to force repayment.
3. Public Defamation
Loan sharks may seem friendly and accommodating when offering you a loan, but once you miss a payment, things can escalate quickly. Many of these lenders gain access to your phone contacts and send defamatory messages to friends, family, and even employers, branding you as a fraudster or debtor.
Some borrowers have even reported being falsely accused of crimes in messages sent to their contacts, further damaging their reputation.
4. Endless Debt Cycle
Many victims of loan sharks struggle to escape the debt trap. Once you borrow from one, you may be forced to take loans from others just to repay the initial debt. This creates a vicious cycle of debt, with skyrocketing interest rates eating into your personal finances and leading to stress, anxiety, and depression.
5. Safer Alternatives Exist
Instead of turning to loan sharks, consider these safer options:
✅ Borrow from family and friends who won’t impose harsh repayment conditions.
✅ Approach licensed financial institutions that offer structured repayment plans.
✅ Explore government or cooperative loan programs that provide low-interest financial support.
Final Thoughts
Nothing good ever comes from dealing with loan sharks. Their loans might seem like an easy fix, but in reality, they lead to financial ruin, harassment, and embarrassment. If you’re in urgent need of money, always seek help from trusted and legal sources to protect yourself from the dangers of predatory lending.
Have you or someone you know been affected by loan sharks? Share your experience in the comments.