What Happens If I Don’t Pay My Fairmoney Loan?

If you’re currently considering taking out a loan from FairMoney or have already taken out a loan, you may be wondering what will  happen if you don’t repay your loan. While it’s always best to repay your loan on time, sometimes unexpected circumstances may arise that may make it difficult to repay your loan as agreed. Hence, if you find yourself in this situation, it’s important to understand the consequences of not repaying your FairMoney loan.

FairMoney Overview

FairMoney is a digital bank that offers loans and other financial services to individuals in Nigeria, India, and Colombia. This fintech platform was launched in 2017 with the primary aim of providing urgent financial services to those who may need urgent cash to meet financial emergencies.  FairMoney offers personal loans that range from ₦1,500 to ₦500,000, with interest rates ranging from 10% to 30%.

What Happens If You Don’t Pay Your FairMoney Loan?

What Happens If I Don't Pay My FairMoney Loan?

Failing to repay your Fairmoney loan on time may come with some consequences. Some of the negative rewards that you should expect if you don’t repay your loan on time are outlined below:

1.Late Payment Fees

If you miss a payment, FairMoney may likely charge you an extra fee for a late payment. This fee can vary depending on the amount of money you borrowed and how long your payment is overdue. However, it is pertinent to note that the longer you wait to make your payment, the higher the late payment fee will be.

2. Interest Charges:

 If you don’t repay your loan on time, interest charges will continue to accrue. This means that you’ll end up paying more for your loan in the long run.

3. Legal Action:

 If you continue to miss payments, FairMoney may take legal action against you. This can include taking you to court and even garnishing your wages.

4. FairMoney may suspend your account.

5.The fintech platform may likely report you to National Credit Bureaus (CRC) as stipulated by the law.

6. Finally, for Indian users, it may likely affect their Credit Information Bureau India Limited(CIBIL) score.

How To Avoid These Consequences

If due to unforeseen circumstances and you’re unable to repay your loan on time, there are things you can do to avoid the above consequences. They include:

1.Contact FairMoney

 If you’re having issues repaying your loan, the first thing you should do is contact FairMoney. They may be able to work out payment modalities that will allow you to make your payments on time.

2. Make Partial Payments

 If you can’t make your full payment, try to make a partial payment instead. This can help you avoid late payment fees and interest charges.

Can FairMoney Deduct Money From My Account

FairMoney may likely deduct money from your account if they detect that the money was mistakenly sent to you or if they notice that the money was gotten from an illegal source. Apart from the two scenarios, FairMoney cannot deduct money from the customer’s account. Nevertheless, we strongly recommend that you carry out your transactions clearly to avert unnecessary deduction. 

FairMoney Loan Harassment

According to the norms, FairMoney doesn’t disturb or harass customers with either calls or  text messages. From the Fairmoney website, they state it categorically by saying: ‘’we will never communicate with any person from your contact list’’. From that we can conclude that Fairmoney may not disturb their customers with calls or text messages. Meanwhile, to be on the safe side, it is best to repay your loan on time to help you build trustworthiness with the platform in case of future transactions.

Wrap Up

In conclusion, failure to repay your  FairMoney loan on time can attract serious negative rewards. Like late payment fees, interest charges, account suspension and legal action are all possible outcomes if you don’t make your payments. However, there are steps you can take to avoid these consequences, such as contacting FairMoney, making partial payments etc. However, if you’re struggling with repaying your loan, it’s vital to take proactive action as soon as possible to avoid making the situation worse.

Leave a comment