How to know if a loan app is legit before you borrow

The short answer: before you download or borrow, check that the lender is on the FCCPC’s register of approved digital lenders. Then watch for red flags: an app that wants your contacts or photos, asks for a fee before paying you, or won’t tell you the total you’ll repay. If any of these show up, walk away.

Why this matters

Loan apps can help in an emergency, but some have harassed borrowers, messaged their friends and family, and charged hidden fees. Since 2025, every digital lender in Nigeria must register with the Federal Competition and Consumer Protection Commission (FCCPC) under new digital lending rules. From January 2026, the FCCPC began removing lenders that didn’t register in time from its approved list.

That means you have a simple first check.

Step 1: Check the official register

1. Go to the FCCPC website, fccpc.gov.ng, and open Registration of Digital Money Lenders → Approvals of DMLs. (The link is in the sources below.)
2. Search for the app’s name and the company behind it. The company name is usually in the app’s store listing or its terms.
3. If the lender isn’t on the list, don’t borrow from it. The list changes as lenders are added or removed, so check again even for an app you’ve used before.

Tip: loans from your own bank or a licensed microfinance bank are regulated by the Central Bank of Nigeria (CBN) instead, so they won’t appear on this list.

Step 2: Watch for these red flags

• It asks for access to your contacts, photos or files. Under the FCCPC rules, lenders aren’t allowed to access these.
• It asks you to pay a “processing” or “insurance” fee before you get the loan. This is a common scam. You pay, and the loan never arrives.
• It doesn’t clearly show the total you’ll repay, the due date and the late fees before you accept.
• It gives you a loan you didn’t ask for. Lenders must get your clear consent before lending.
• It has no company name, address or customer support, or you can only reach it through a random WhatsApp number.
• It pressures you with countdowns or “offer ends now” messages.

Your rights as a borrower

Under the FCCPC’s 2025 digital lending rules, lenders must not:

• harass you, threaten you, call you names or shame you in public
• send messages about you to your contacts, friends or family
• give you a loan without your clear consent

You can also ask your lender for a statement of your loan, and they should send it within 24 hours. Lenders that break the rules can be fined up to ₦100 million or 1% of their yearly turnover, and their apps can be removed.

Owing money doesn’t give a lender the right to harass you. You should still repay what you genuinely owe, but on fair terms.

Before you borrow: a quick checklist

• ✅ The lender is on the FCCPC approved list
• ✅ I know the total I’ll repay, not just the interest rate
• ✅ I know the due date and the late fees
• ✅ The app is not asking for my contacts, photos or files
• ✅ I’m not paying any fee before receiving the loan
• ✅ I can repay on time without taking another loan

If a loan app harasses you

1. Keep evidence. Take screenshots of messages, call logs and app pages, with dates.
2. Report to the FCCPC. Send your evidence, the app’s name and its store link through the FCCPC website. The emails reported for this are [email protected] and [email protected].
3. Report the app on Google Play or the App Store.
4. Call your bank if the app debited you without permission.
5. Go to the police cybercrime unit if you receive threats, blackmail or see your photos posted.

Don’t delete your evidence, give the app new permissions, or pay extra money just to make threats stop.

Where to go next

Not sure about a particular loan app? Ask Mr. Tom on WhatsApp. Your question could become our next Deep Dive.

This post is general information, not financial or legal advice. Rules and the list of approved lenders can change, so always check the FCCPC website for the latest.