Can I go to Jail for not paying online loan apps in Nigeria?

Can I go to Jail for not paying online loan apps in Nigeria?

The rise of loan apps like Carbon, branch, Fairmoney and many others, has made small loans easily accessible to Nigerians.

Usually, all you have to do is register on this app, provide a few details like your name, email address, bank verification number etc. and you will be able to get small loans.

There is usually a duration (from days to weeks to months), in which you will need to pay back your loan, otherwise, it will accrue interest daily, meaning you will have to pay an even higher amount.

As many of you may well know, failure to pay your loan can lead to the lender contacting your friends and family, asking them to let you know that you have an outstanding loan to pay.

Some of these apps even employ some shady tactics in trying to get you to pay your loan by threatening you with legal action, or some sorts of forceful actions, in order to get you to pay your loan.

A lot of people have been asking the question “Can I go to Jail for not paying online loan apps in Nigeria?” and I decided to answer that question in this post.

Remember to leave us a comment after you finish reading and also share with your friends on social media.

Let’s get into it then…

Loan app can't jail you. Because, late loan repayment is not a criminal offence

Why do people refuse to repay their loans?

There are numerous reasons why some people refuse to pay their loans:


The hardships in the country means that there are people who want to pay back their loans, but since things are so difficult, they may end up not being able to pay their loan in due time.

The lack of available jobs, the ever falling value of the Nigerian naira are just some of the Examples of how difficult things are in the country currently.


Some individuals intentionally take loans with no plan of paying back because they are scammers and have no integrity.

They intentionally fish out the latest loan apps and take loans with no intention of paying back their loans.

Lack of financial knowledge

Some people just don’t know how to handle their finances, they have little knowledge of finance management, and as such, they are always found wanting, when it is time to clear up their debts.

Can I go to Jail for not paying online loan apps in Nigeria?

Technically, you cannot be arrested for not repaying a loan, but there are cases when you can be taken to court and then to jail.

Usually loan apps cannot take you to jail for not paying your loan, but it is very possible that they can use corrupt police official to harass you in a bid to get you to pay back your loan.

In some case, some loan apps have even employed the services of street thugs to harass people who default their loans i.e. if they are able to track your location.

Also if you are taken to court, and the court find out that you are willingly refusing to pay your loan, that you lied in the process of collecting or used the money for some nefarious purposes, then you can be taken to jail, as this is a criminal offense.

Although a loan company taking you to court is usually a last resort, and I imagine you must be owing a significant amount of money.

Why you should repay your loan?

The following are some of the reasons you should pay back your loans:


You should know that these companies are businesses, and failure to pay back loans puts them at losses, and if you have ever run a business before, you should know how losses affects businesses.

If everyone refuses to pay back loans, then it’s only matter of time before they run bankrupt and are unable to give out loans anymore.

So, you should pay back your loans on time in order to keep these businesses in float.

Access to future loans

Another reason you should pay back your loans is because failure to do so means that you will be denied access to future loans.

Before granting out loans, these financial institutions usually perform a background check to see if you have paid any previous loans that you took. If they find out that you have failed to pay back previous loans, then they obviously will not grant you one.


For your future reputation, it is advisable for you to pay loans, as it may come back haunt you in future business dealings. You don’t want to have a history of failing to pay your loans, it is not a good look on paper.


With the above, you should now have an answer to the question “Can I go to Jail for not paying online loan apps in Nigeria?”.

If you require further information, you can leave us a comment below or visit our contact us page and we will get back to you as soon as we possibly can.


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