We understand that you need a loan to support a business or solve a small problem as soon as possible. However, a loan shark can be frustrating, and sometimes, not worth it at all. This is a review of Lifeline lender in Nigeria. Is Lifeline Loan app legit or a scam? We have investigated and you’ll find out.
Lifeline Loan is fairly legit because it is fully approved by the FCCPC (Federal Competition and Consumer Protection Commission) but still very shady in its activities. This loan app is owned by Fintrade Solutions Limited, the owners of Plenty Cash and Steady Kash. The address is 77 Awolowo Way, Ikeja Lagos.
Is Lifeline Loan Legit?
Yes, Lifeline Loan is fully approved by the FCCPC. However, it doesn’t mean that this loan app is perfect. First, don’t be fooled by fake reviews and false ads that make claims you will never experience. Lifeline Loan’s idea of offering loans is welcomed but some of its activities are shady and questionable.
This lender, through its staff, will encourage people to take a loan and repay in 2 hours to be able to access more after that. Unfortunately, this is the beginning of a bad customer experience.
Lifeline Loan charges about 50% in loan interest and wants you to pay back within 6 days. In addition to the interest rate, if you default on this loan, Lifeline Loan will add approximately 10% interest each day you fail to pay back. Now, that’s predatory.
This lender’s app also has the reputation of forcing a loan on people who do not need it so that Lifeline Loan gets to prey on your funds.
Let’s see examples. If you borrow 19,200 naira, you’ll have to pay back 30,000 naira in 7 days. What Lifeline Loan does is that you’ll be credited for just clicking to review how much loan you can get.
Now, another major problem with Lifeline Loan is that the app will display a loan amount of 30,000 naira. However, when you apply for this loan, Lifeline Loan will disburse only N19,200 naira to pay back 30,000 naira in 6 days. Anyone would be upset by this practice, and it’s unfair to borrowers. For every overdue day, you’ll be charged an additional 1,500 naira—this is extremely predatory.
Lifeline Loan also has a reputation for contacting borrowers before the due date with unprofessional messages.
Also, if you apply for a loan that is approved but has not been disbursed into your account, Lifeline Loan will still go ahead and display the loan on your dashboard that you are owing the said amount of money, even if your bank confirms that no such money entered your account. It seems that Lifeline Loan manually manages the disbursement, and they are very inaccurate with the management which ends up reporting false customer data.
How Does Lifeline Loan Work?
Lifeline Loan gives loans from 2,000 naira and above. If you install this app with the hopes of collecting a loan of up to 900,000 naira with a long loan term, that’s giving you false hope. This lender typically gives small loans only.
Lifeline Loan promises a maximum interest rate of 20% per year with loan terms of up to 100 days. All false. What you’ll experience is loan interest of up to 40% or more, with up to 10% of daily interest if you exceed your due date.
So, if you ask for a loan of 10,000 naira, Lifeline Loan will likely give you 6,000 naira to pay back 11,000 naira. Lifeline Loan takes interest up front, as such, it does not disburse the complete loan amount.
How to Use Lifeline Loan App
- Download the Lifeline Loan app from the Google Play Store.
- Open an account with your personal and bank information.
- Submit your registration information.
- Apply for a loan.
If your loan application is approved, the money will be credited to your bank account. Unfortunately, you won’t be given huge loans by this lender.
As for the eligibility, you have to be resident in Nigeria and more than 18 years old.
Pros and Cons
Pros
- Lifeline Loan actually gives a loan.
- Available on Google Play Store.
- FCCPC approved but fairly legit.
Cons
- It’s a loan shark.
- Not available on the Apple App Store.
- The loan review process takes too long.
- Extremely high interest rates.
- The loan term is not as advertised. Rather, you typically have only 6 days to repay your loan.
- Unprofessional and unhelpful customer service.
- Loan amount is very small.
- Disturbs borrowers before the due date.
- Lifeline Loan takes interest up front and, as such, does not disburse the complete loan amount.
Is Your Personal and Bank Data Safe with Lifeline Loan Lender?
Fintrade Solutions Limited has not had any major customer data abuse reports. However, you cannot trust this loan app with your personal and bank information.
Now, let’s talk about the information it collects. Personal information collected includes your name, age, email address, phone number, personal description, photograph, username, NIN, and home address (such as utility bill). Bank information collected by Lifeline Loan includes BVN (bank verification number), debit/credit card number, and bank account number.
When you install the Lifeline Loan app, information collected from your device, either your permission or no permission, includes your installed apps, device ID, device type, IMEI, GPS information, device operating system, IP address, personal contact numbers, call logs, SMS logs, Facebook friends and other social media accounts, photos, and videos or other digital content. Lifeline Loan lender can also contact someone in your phone list, SMS, call list, etc.
It’s up to you to make this decision. Lifeline Loan app may not be a perfect loan app but one thing they can sometimes do is actually give loans, even though they can sometimes be shady.
Verdict
This app is fairly legit because of its current FCCPC status. However, Lifeline Loan is a shady and misleading loan app with false ads. If you can’t afford the high-interest rates, don’t bother borrowing money from them. In this review, Lifeline Loan gets a 1 out of 5 rating.
Reas Also: UltraCash Loan App Review [a Shady Nigerian Loan Shark]
