BoG commended for regulating online loan services – Skyy Power FM

Some young people have been sharing ideas on the benefits of online loan application services.

This follows the recent caution the Bank Of Ghana(BoG) gave to 97 online loan applications.

According to the Bank of Ghana, most of these applications have been engaging in unlicensed lending activities which are in contravention of the Bank and Specialized Deposit-Taking Institutions Act, 2016(930).

The bank admonished the general public to only patronize the various types of digital credit products approved by the Bank of Ghana which can be accessed on their websites.

In an interview with Skyy News, some young people commended the Bank of Ghana on the decision. They said the online loan application is very helpful to them but off-late, the influx of fraudsters has made it difficult to identify the genuine ones.

They cited distance as one reason for their preference for online loan services.
However, some of these online applications publish the names and contacts of defaulters which they say is embarrassing, “we that we are closer to some of the credit unions we just go to them but in cases that we are far, we just pick our phones and that’s all. But when you default your name, your picture will just be roaming about”, one young person stated.

They therefore appealed to the authorities not to scrap the online loan application services but rather, continue regulating them, “they should keep it because it helps and there should be some people that will be able to verify if the app is rendering the services it is supposed to serve, that is the online loan services so that there will be no frauds”another young person said.

On the contrary, one young person opined that online loan application services should be scrapped. He noted that most of these online loan application services have high-rate interest payments they demand from customers.

According to him, they are also susceptible to fraudulent activities, hence the need to cancel them completely, “I wouldn’t go for an online loan because many of these loans come with high-interest rates. These online lending services are more susceptible to fraudulent activities” he said.

He further admonished fellow young people to be certain on whether or not they will need loans before they go in for them, to avoid burdening themselves with debt, “what you have to do when you go for these online loans is you will have to borrow what you need to avoid falling into a circle of debt because when you borrow more the interest becomes more”, he noted.