Can FairMoney deduct money from my account?
FairMoney is an automated online moneylender that provides single payment loans, installment loans and payroll loans for borrowers. The amount borrowed is then deducted from your account.
What is the penalty for not paying a loan?
You may be charged a late fee after a grace period of 10 to 15 days. The fee can be charged as a dollar amount ($15 to $40) or a percentage of the payment due (5% to 10%). The payment must be at least 30 days past due for the lender to report it as a late payment to the credit bureaus.
What happens if the borrower fails to repay the loan?
A loan is classified as a non-performing asset (NPA) if the repayment is 90 days overdue. In such cases, the lender has to first issue a 60-day notice to the defaulter. If the borrower fails to repay within the notice period, the bank can go ahead with sale of assets.
What happens if I don’t repay a loan?
If You Don’t Pay
If you stop paying on a loan, you eventually default on that loan. The result: You’ll owe more money as penalties, fees, and interest charges build up on your account. Your credit scores will also fall.
Is FairMoney registered with CBN?
FairMoney, the quick loan app, now licensed and regulated by the Central Bank of Nigeria (CBN) as FairMoney MicroFinance Bank (FairMoney), has expanded its offering to include investment instruments.
What happens if I don’t pay my FairMoney loan?
In addition to the interest rate, we charge a processing fee for every loan that you get with FairMoney. … We also charge a minimal late penalty fee (calculated as a % of the outstanding amount after the due date). This fee is only charged if you don’t repay your loan on time and ranges from 0.2% to 0.8% per day.
Can you go to jail for not paying a loan?
Not being able to meet payment obligations can make anyone feel anxious and worried, but in most cases, you won’t have to worry about serving jail time if you are unable to pay off your debts. You cannot be arrested or go to jail simply for being past-due on credit card debt or student loan debt, for instance.
Is loan default a criminal Offence?
It is not a criminal offence to default on loan repayment. “Loan default is generally a civil wrong, except in cases where there is fraudulent or dishonest intention on the part of the borrower at the time of availing the loan,” says Mani Gupta, Partner at Sarthak Advocates & Solicitors.
Is it illegal to not pay back a loan?
No, you cannot be arrested for defaulting on a payday loan. However, if you are sued or a court judgment has been entered against you and you ignore a court order to appear, a judge may issue a warrant for your arrest.
What is it called when you dont pay back a loan?
Loan default occurs when a borrower fails to pay back a debt according to the initial arrangement. … The period between missing a loan payment and having the loan default is known as delinquency. The delinquency period gives the debtor time to avoid default by contacting their loan servicer or making up missed payments.
What is loan overdue?
The loan amount which customers fail to repay on time is known as the Loan Overdue Amount. As it is clear from the name itself, the Loan Overdue Amount is the amount left unpaid even after the due date of payment.