What Happens If You Don’t Pay Back PalmCredit Loan? (See the Worst They Can Do to You)

Borrowing from PalmCredit can seem like a quick fix when you need urgent cash, but failing to repay your loan can trigger a series of stressful consequences. PalmCredit is owned by Newedge Microfinance Bank, which also operates other lending apps like NewCredit, EasyBuy, and 9Credit. This means defaulting on a PalmCredit loan can affect your ability to borrow from these other platforms too.

In this detailed guide, you’ll learn what really happens if you don’t pay back your PalmCredit loan, how far they can go to recover their money, and smart steps to handle their calls, threats, and overdue penalties.

What Happens If You Don’t Repay PalmCredit Loan on Time

When you borrow from PalmCredit, you agree to repay within a specific duration. Once your repayment date passes and you haven’t paid, the countdown begins for penalties, harassment, and restrictions that can ruin your credit reputation.

1. They Will Start Calling You Repeatedly

Once your repayment is overdue, PalmCredit agents begin to call you multiple times daily. They may use different phone numbers to reach you, especially if you ignore their initial calls. Some users report receiving calls early in the morning and late at night.

Their tone can sometimes be harsh, threatening, or intimidating — a common tactic used to pressure borrowers into repayment.

2. They Might Threaten or Yell at You

PalmCredit recovery agents are known to use threats and aggressive language to force repayment. While this is unprofessional, it’s a reality many defaulters face. Some may claim that you’ll be arrested or that your details will be made public, but most of these are empty threats meant to scare you into compliance.

3. Expect Harassment Through Frequent Calls

If you keep ignoring them, they won’t stop. PalmCredit agents might call you several times a day until you respond or make payment. The persistence can be frustrating and mentally draining, especially if you’re not financially ready to repay.

4. They Will Contact Your Emergency Contacts

During registration, you provided emergency contacts — these may include family members, colleagues, or friends. Once you default, PalmCredit may start calling or sending WhatsApp messages to these people, informing them about your unpaid loan.

They might exaggerate the situation to embarrass you into repayment. This can be uncomfortable and may affect your personal relationships, so it’s best to settle your debts before it reaches this point.

5. Your Credit Score Will Be Affected

PalmCredit is a licensed lender in Nigeria, meaning they have access to credit bureaus such as CRC Credit Bureau and First Central Credit Bureau. If you fail to pay back your loan, they can report your default to these agencies.

This will reduce your credit score and make it difficult for you to access loans from other financial institutions in the future. Even banks and reputable loan apps like FairMoney, Carbon, or Branch might reject your applications once they see your bad credit history.

6. Overdue Interest Accumulates Daily

One of the most painful parts of loan default is how fast the amount grows. PalmCredit applies daily overdue interest, which keeps increasing until you clear your balance.

For example, a ₦30,000 loan can grow to over ₦100,000 within six months if left unpaid. This traps many borrowers in a debt cycle that becomes difficult to escape. The earlier you pay, the less interest you accumulate.

7. You’ll Be Blacklisted from Other Newedge Loan Apps

PalmCredit shares borrower information with its sister apps — NewCredit, 9Credit, and EasyBuy. Once you default, you’ll automatically lose access to these platforms.

Even if you delete the PalmCredit app and try to apply elsewhere under the same BVN, your record will show that you owe, leading to instant rejection.

8. They Might Stop Calling After Some Time

Interestingly, if you ignore their calls for too long or show no interest in paying, PalmCredit may eventually stop calling you frequently. However, this doesn’t mean you’re free — your debt continues to grow silently, and your credit reputation remains damaged.

If you ever plan to borrow again in the future, you’ll have to clear the old debt first.

How to Handle PalmCredit Threats and Harassment

Defaulting on a loan can be stressful, but you can manage the situation smartly without worsening things.

1. Use Truecaller to Block Spam Calls

Install Truecaller on your phone to identify and block spam calls from PalmCredit recovery agents. This helps reduce the constant disturbance while you make plans to repay.

2. Change or Deactivate Your Number Temporarily

If the harassment becomes too much, you can change your phone number or temporarily deactivate your SIM card. When you’re financially stable, you can reconnect your line and pay back your debt.

3. Uninstall the PalmCredit App

After defaulting, it’s best to uninstall the app from your phone to avoid further emotional stress from notifications or reminders. You can reinstall it later when you’re ready to settle your debt.

4. Change Your WhatsApp Number

If PalmCredit recovery agents start messaging your WhatsApp, you can switch to another WhatsApp number to protect your privacy.

5. Stay Calm and Polite When Talking to Them

Even if the agents are rude or aggressive, avoid shouting or using harsh words. Instead, speak politely and explain your situation. If possible, negotiate a repayment plan — although they may not always agree, it’s better than ignoring them completely.

6. Avoid Getting Trapped in More Debt

Some borrowers try to take new loans from other apps to pay off PalmCredit, but this often leads to a dangerous debt cycle. Instead, focus on paying your existing loan gradually to regain your financial freedom.

7. Pay Your Loan as Soon as Possible

No matter how frustrating the calls get, the best way to end the harassment is to pay off your loan. The longer you delay, the higher your balance grows due to interest and penalties.

Do PalmCredit Agents Defame Borrowers?

PalmCredit agents don’t usually publish your photos or post defaming messages online. However, they can contact your emergency contacts and sometimes send WhatsApp messages warning them about your debt.

They might threaten to post your picture on social media, but in most cases, this is just a scare tactic to make you pay faster. Their main focus is contacting your guarantors and emergency contacts, not public defamation.

Best Loan Apps to Use Instead of PalmCredit

If you want a better borrowing experience with transparent interest rates and professional customer service, here are some reliable alternatives:

• FairMoney Loan App – Quick disbursement, reasonable interest, and flexible repayment.

• Branch Loan App – Known for stability and no harassment during repayment.

• Carbon Loan App – Offers loans, bill payments, and investment options.

• Renmoney – Licensed lender offering both personal and business loans.

• Aella Credit – Great for salary earners, with flexible repayment terms.

• Aida Credit – Fast disbursement and moderate interest rates.

• Migo Loan – Allows borrowing without an app, using phone numbers.

• Irorun Loan – Simple application process and responsive customer care.

These apps provide a more respectful borrowing experience compared to PalmCredit and are ideal for those seeking financial peace of mind.

Final Verdict 

Failing to repay your PalmCredit loan can lead to endless calls, rising interest rates, damaged credit scores, and harassment of your contacts. While some of their recovery methods can be stressful, the ultimate solution is to repay your debt as soon as you can.

If you’re struggling financially, communicate politely, request more time, and avoid taking more loans to cover old debts. Once you clear your PalmCredit balance, you can start fresh with more responsible loan platforms that value borrowers’ dignity and privacy.