Today I will be doing a quick review on Naijaloan but First of All, Let’s Find Out What NaijaLoan Is All About and how it works.
What Is Naijaloan
NaijaLoan is an innovative member-to-member lending platform where all members are lenders and borrowers at the same time.
Member-to-Member lending means whenever you are giving a loan, you are giving it directly to a member on the platform, and whenever you are requesting for a loan, another member on the platform will give you the loan directly. We are the middle-man that connects everybody. That is, we are not the one giving you the loan, neither are we the one borrowing from you.
But how can all members be lenders and borrowers at the same time? That’s tough to answer, but you will get it, do not worry. Scroll down to the next question for explanation.
How Does Naijaloan Lending and Borrowing works?
As we said, all members on Naijaloan are lenders and borrowers at the same time.
That means, whenever you give a loan, you are also borrowing from the platform. So let’s say you give a loan of N5,000 (on level 2), you will get N10,000 back (the N5,000 you gave + N5,000 interest). But at the same time, it means not only are giving a loan of N5,000, you are also borrowing N10,000.
You are confused right? Don’t worry. It will get simpler.
Here is the scope. You gave a loan of N5,000 in order to get N10,000 right? That’s right. You will get your N10,000 without stress. But whenever you upgrade (let’s say from level 2 to level 3), you will have to pay back the N10,000 you are owing the platform (that N10,000 we said you borrowed). And that N10,000 you paid will upgrade you to level 3, where you will get N20,000 in return.
So in other words, you paying N10,000 to move from level 2 to level 3 means you have paid back the money you borrowed & you are also giving a new loan at the same time.
In summary, whenever you give a loan on NaijaLoan, you are borrowing & lending at the same time.
What happens if you give a loan and the person does not pay back?
Whenever you give a loan, you are actually lending to the platform.
That means the whole community will be responsible for the loan. If one member fails to pay, other members will be directed to pay you.
But how can N1,000 turn to N120,000 in a month?
NaijaLoan operates what is called a Progressive Level System. And this is what enables your N1,000 to turn to N120,000.
Check below for how the progressive level system works.
There are 6 progressive levels on NaijaLoan.
Get ₦5,000 (1 day)
Withdraw & upgrade to level 2
Get ₦10,000 (2 days)
Withdraw & upgrade to level 3
Get ₦20,000 (4 days)
Withdraw & upgrade to level 4
Get ₦40,000 (6 days)
Withdraw & upgrade to level 5
Get ₦80,000 (8 days)
Withdraw & upgrade to level 6
Get ₦120,000 (10 days)
Withdraw your N120,000 & spread the good news
Now, Is Naijaloan Legit?
There’s always going to be an issue with all these kind of earning sites, let me take us back to “racksterly”. This site was a very interesting earning site but it was short down wayyyyy too early. (All Good Things Must Come To An End)
The site had 4 levels but it wasn’t a loaning site, it was a site where whoever registers get to post an advert on his/her Facebook timeline and then the person will earn about $1.25 daily(for the minimum package) and then when the month comes to an end, then the person can make withdrawals. Very simple(not tasky at all).
For the level 1, you register with N6000 and then get 100% return by the end of the month(N12000 plus).
But yes, it had payment issues and that was the downfall for this amazing earning platform.
What was the payment issues?
The popular payment gateway(PAYSTACK) they used on their site froze all withdrawal transactions on their site without even telling them and that was how the battle began.
They had to migrate to a new payment gateway(FLUTTERWAVE) and still yet, flutterwave did not even allow them to welcome new members let alone pay their members. Why?, it had to do with flutterwave’s policy.
FLUTTERWAVE said that they were running a Ponzi scheme.
They wanted to migrate to another payment gateway but they later decided to throw in the towel.
And that was the end of racksterly. Now the problem wasn’t that racksterly couldn’t pay their members, it was because their payment gateway wouldn’t release funds. naijaloan review naijaloan review naijaloan review
So a problem will always come up one way or the other. naijaloan revieweview
Now, members of Naijaloan are complaining about payment issues. Screenshots below:
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So yes, a problem will always come up when it comes to these kind of earning platforms.
I just used a popular platform in the past to make example, they are numerous ones that are no more today. That of NNU, GiftalWorld, racksterly, etc. is naija loan real is naija loan real is naija loan real is naija loan real is naija loan real
So I’d say Naijaloan is pretty much 50 50. naijaloan review naijaloan review naijaloan review naijaloan review
Do leave your thoughts below in the comment section.