Loan Sharks in Nigeria: How to Identify and Avoid Apps Like Kashflex

In recent years, many Nigerians have turned to quick loan apps when unexpected bills or emergencies arise. While some licensed lenders provide fair services, others—commonly known as loan sharks—trap borrowers with outrageous interest rates, harassment, and defamation. One of such apps is Kashflex, reported to charge as high as 35% interest on short-term loans.

Imagine borrowing ₦10,000 and being asked to repay ₦13,500 within just 7 days—that’s how fast debt can spiral. In this article, we’ll explain how loan shark apps operate, why they are dangerous, and practical steps you can take to protect yourself and your finances.

What Makes Loan Shark Apps Like Kashflex Dangerous?

Loan sharks thrive on desperation. Instead of helping borrowers, they exploit them with unfair conditions. For example:

• High interest rates: Kashflex reportedly charges 35%, meaning a ₦20,000 loan turns into ₦27,000 repayment in a week or two.
• Short repayment periods: Often less than 14 days, forcing borrowers into a debt cycle.
• Harassment and threats: Sending defamatory messages to your contacts when you can’t pay on time.
• No credit bureau reporting: Since they’re unlicensed, repayment does not improve your credit history.

10 Practical Ways to Break Free from Loan Sharks

1. Ignore Harassing Messages

If a loan shark sends defamatory texts to your friends and family, don’t panic. These apps are unlicensed and cannot legally harm you.

2. Avoid Unlicensed Apps

Legit lenders are registered with the Central Bank of Nigeria (CBN) and listed with credit bureaus. If an app isn’t licensed, avoid it completely.

3. Your Contacts Can’t Protect You

Most of your contacts already know about these apps’ tactics. Focus on protecting your financial reputation instead of worrying about them.

4. Beware of Short-Term High-Interest Loans

Any loan that demands repayment within 7–14 days at 30–50% interest will only push you deeper into debt.

Example: Borrow ₦50,000 at 40% → repay ₦70,000 in 10 days. That’s unsustainable.

5. Don’t Accumulate Debt

Borrowing from one app to repay another only traps you in a debt cycle. Loan sharks often run multiple apps under different names.

6. Stop Paying Overdue Interest

If you’ve cleared the principal loan plus initial interest, ignore threats demanding extra overdue charges. They have no legal power to enforce it.

7. Block and Report Loan Sharks

Install Truecaller to identify spam calls. Block harassing numbers and report them to Google Play Store and WhatsApp for abuse.

8. Break Free by Stopping Borrowing

The only way out is to stop using these apps. Remember, you survived before them—you can again.

9. Protect Your Health and Reputation

Loan sharks thrive on stress and fear. Don’t allow financial pressure to destroy your peace of mind.

10. Choose Licensed Alternatives

Instead of using apps like Kashflex, go for trusted lenders such as FairMoney, Branch, Carbon, and Aella Credit, which offer lower interest rates and flexible repayment.

What Loan Shark Victims Should Know

• Loan sharks are not linked to the credit bureau.
• They promise fast money at 40%–70% in 7 days, but this only compounds misery.
• Their true aim is to profit at your expense and keep you trapped in debt.

Borrowing from apps like Kashflex may look like a quick fix, but in reality, it’s a financial trap. With interest rates as high as 35%, what starts as a ₦10,000 loan quickly snowballs into an impossible repayment. Instead of relying on loan sharks, build healthier financial habits and consider safe, licensed lending platforms. If you’ve been harassed by loan apps, share your story—it could save someone else from falling victim.

ALSO READ: The Difference Between Loan Sharks and Legitimate Lenders: Know the Difference