Palmpay is one of Nigeria’s fore loan apps that provides Nigerians a wide range of credit opportunities. Palmpay provides its customers loan amounts ranging from 2,000 to 500,000 naira with repayment terms from 61 days to 6 months. Aside from its loan benefits, PalmPay is an intuitive financial app with account opening, money transfer, and bill payments in one.
PalmPay is worthy of your trust based on its safety and reliability. And it is fully licensed and regulated as a Mobile Money Operator by the Central Bank of Nigeria, insured by the NDIC, and trusted by millions of users. With over 500 cooperation partners, PalmPay supports all scenarios you want to pay. However, since Palmpay is a loan app, what happens if you don’t pay your loan? We will find out in this blog!
Overview of Palmpay
The Palmpay mobile app allows customers to perform money transfers, pay for airtime and bills, and earn rewards. It is the financial app that fits your financial life.
Other things you should know about Palmpay include;
- Trusted by millions of Nigerian users for seamless money transfers and payments.
- Enjoy seamless and unlimited Free Transfers to all banks.
- Save flexibly with super amazing daily interest at up to 20% p.a., plus you can withdraw for free any time!
- Get 20% discount on Every Airtime Tuesday and 10% discount on Every Data Friday.
- Pay the exact amount at over 100,000 local shops.
- Easy to sign up with your phone number and get mind-blowing Rewards.
- 24/7 Customer Support is always available for you.
Transfer
- Unlimited Free Transfers to all banks.
- Instant transfer to over 500 financial institutions.
Savings
- Flex your savings with super amazing daily interest at up to 20% p.a., accessible any time!
- Enjoy higher returns with fixed savings, lock your funds to earn up to 20% p.a.!
Airtime
- Support 5 telecommunication operators, including MTN, Airtel, GLO, 9Mobile and Smile.
- Get 20% Discount on Airtime every Tuesday.
- Use Schedule Top-up to help you recharge automatically to avoid downtime.
Data Bundle
- Get 10% Discount on Data Bundle Purchases every Friday.
- Exclusive Data Social Plan with MTN, get 1GB of Data at only N250.
Pay Shop
- Pay with PalmPay at over 500,000 local shops and get cashback everyday.
Loan
- Repayment periods from 61 days to 6 months
- Loan amount from N2000 to N500000
- APR from 36% to 300% per annum
For example; N1000 is given for 90 days loan term,
Interest: N90(9%rate)
Total amount payable: N1090
Representative: 36%APR
What Will Palmpay do if I Don’t Pay My Loan?
Now, here is where things get a little bit serious. There are a couple of things that could happen if you default on repaying your loan or clearing your Palmpay credit and they are as follows:
- Accrual of Late Fees
- Impact on Credit Score
- Inability to Access Future Loans
- Communication from PalmPay
- Possible Legal Action
Accrual of Late Fees
Like in other instant loan apps, Palmpay has what is called late repayment fees. These fees are added when you default on repaying your loan credit on the due date. They usually accumulate over time till whenever you decide to clear up your debt.
So if you miss the repayment deadline for your Palmpay loan, you should expect to see a much higher loan amount to repay and you certainly do not want this to happen. Hence, you need to make repayment as soon as possible to avoid accrual of late repayment fees.
Impact on Credit Score
Aside from accrual of late fees, one other thing you tend to face if you refuse to repay your Palmpay loan is a bad credit score/history. Refusing to pay your loan can have an impact on your credit score and if you don’t know what this means you really need to check out the next fact.
While PalmPay may not directly report to credit bureaus concerning your default on repaying the loan you collected, continued non-payment of debts may affect your creditworthiness in the long run. More so, leading to a bad/poor credit history.
Inability to Access Future Loans
When you have a poor credit score what happens? Of course, you may not be able to access loans in the future from Palmpay and other instant loan apps. Responsible borrowing and timely repayment are factors considered for loan eligibility on any loan app.
If you want to keep accessing loans in the future you need to ensure that you pay on time all the present loan credits you must have collected. Always have it in the back of your mind that you need to pay your loan on the due date as soon as you are granted the loan not only to avoid a poor credit score or late fees but to access future loans.
Possible Legal Action
If you default on a loan from PalmPay, they may send a notice of default to you, giving you a certain amount of time to pay the loan back. If you still don’t pay, they could take legal action against you, such as filing a lawsuit or sending your account to collections. While this is most rare, it is usually the last resort Palmpay would take to recover their money.
Wrap Up
Defaulting on repaying your loan can attract a lot of consequences including accrual of late fees, impact on credit score, inability to access future loans, and in some cases, possible legal actions which may involve a lawsuit or blacklisting your account.
However, in order to avoid such from happening you need to ensure repaying your loans on the due date and should you delay repaying your loan credit, ensure to relate with a representative from the company to be on the safer side and to be given a period of grace.
What if I’m owing palmpay 150000 will they take legal action?