Sokoloan is an online lending platform that provides fast loans for individuals and businesses in Nigeria to cover unexpected and urgent needs. To apply for a loan on Sokoloan, users have to first download the app from the Google Play store, complete their biodata, and request a loan.
In this review, we deep-dived into the Sokoloan app, its features, interest rates, and what their current & previous customers say about their app, service and operations. Our analysts then compiled this information to make recommendations on if and when anyone should use the app.
How it Works
The Sokoloan app is only available to Android users on the Google Play Store. It has over 1Million downloads with an overall average rating of 4+ stars which makes it one of the most reliable loan platforms in Nigeria.
Sokoloan provides loans of between #5,000 and #100,000 Naira. Nevertheless, you will have to start small as a beginner. Your credit score, however, determines the amount you are allowed to collect.
To get a loan from Sokoloan, customers have to follow these simple steps.
- First, Install the App: Download the app from Google Play Store and type in “Sokoloan.” or download the app directly.
- Sign up and verify your phone number.
- Fill out the form with your BVN and your biodata to apply for a loan.
- Finally, consent to the terms and conditions and submit your details.
Your loan application will be processed by a Sokoloan account offer, and funds will be credited to your desired account if approved in 24 hours or less.
In case your application is unsuccessful, you will be informed within the same 24-hour window of the reasons why your loan application was rejected.
- Instant loans for individuals and businesses.
- Collateral-free loans.
- Very little paperwork.
- Outrageously high-interest rates.
- Only available to users on Android (Google Play Store).
- No flexibility in repayment dates.
- Sokoloan is predatory in nature.
- There have been reports of Sokoloan defaming users who default on loans.
Other Things to Be Aware of Before Taking a Loan from Sokoloan.
Sokoloan is very fast and reliable but there are potential pitfalls you should be aware of before you take a loan from them. Not being aware of these factors can potentially impact your credit rating negatively with the National Credit Bureau or worse, lead to reputation damage by the loan provider.
The first consideration to be aware of is that Sokoloan rates are extremely high and predatory in nature. Averagely, Sokoloan interest rates on loans range from 4.5% to 45% in as little as 10 days.
This means that you may be asked to pay an interest of four thousand, five hundred Naira on a ten thousand Naira loan in as little as 10 days.
The repayable amount will be debited from the bank account associated with your Sokoloan account when your loan is due. You can also decide to pay back the loan earlier than expected through the app.
However, there is no allowance to default on repayment or extend your repayment by one day for any reason whatsoever. Therefore, we encourage you to only apply for a loan if you can repay it on time. They notify the National Credit Bureau of defaulters, which ultimately impacts your credit rating.
While reviewing Sokoloan, we found many instances where this loan provider spread potentially damaging information about their customers when they default (even if it’s just for a single day).
Wonder how that can even happen. One of the things Sokoloan does when you download the app is to request to access your phonebook. This way, Sokoloan have access to the contact list of their users and can spread information about the user with the click of a button.
Although this is very illegal to do, there have been many reports of this illegal behaviour being perpetuated by the loan provider.
According to the platform, Sokoloan is strictly paperless and does not require collateral. All you need to register for the loan is your phone, data connection, valid ID card and bank details.
Is SokoLoan Legit?
Absolutely! Sokoloan is legit. However, their interest rates are outrageously high and range from 4.5% to as high as 35%. Also, their illegal way of spreading damaging information about their customers when they default on payments is something Nigerians should be mindful of.
The Sokoloan is an effective way to get quick access to online loans with minimal effort. The application process is straightforward, and the loan decision is made quickly.
However, the cons of using Sokoloan greatly outweigh its pros and as such, Melting Pot Africa will not recommend these loans to its readers, at least until there is an effective change in how they handle loan defaults.