The first loan is too low. That’s the first thing I’ll say about Floan Loan App Zambia. No, it’s not a scam and is very legit. The application process is streamlined, but for your first loan, you will get a small amount that will further be deducted from.
Is Floan Loan App Zambia legit or a scam?
Having used it, I will say it is legit. They have a strange fee structure, but that does not make it a scam.
They are not registered with the Bank of Zambia, but they do appear on the list of financial institutions registered with the Ministry of Finance. That alone is an assuring detail.
Here is the address and contact details for Floan Loan App Zambia
- WhatsApp: +260573402824
- E-mail Address: support@floan.com
- Address: Plot 307, Lilayi estate, Lusaka Province, Zambia
On their site, they also have a form where you can message them.
Pros of Floan Loan App
- I was fairly impressed with the streamlined application process. That’s about the only pro I found about Floan.
- They don’t call for an interview: This is not really a problem, but anything that makes things faster and easier is a pro.
Cons of Floan Loan App
- Slow loan disbursement: I got the money in my Airtel mobile money account in about 30 minutes. Compared to Zeed Loan App or Zamcash, who send out the money in 5 minutes, Floan is slow.
- No interest rate specified: Floan loans do not have a specific interest rate. All they have are fees, and this makes it hard to anticipate the loan structure.
- Hidden fees: Apart from the high charges, you will also be hit with unforeseen fees.
- Low initial loan amount: For my first loan, I got K100. That’s incredibly small for today’s economy. It can barely cover a day’s groceries.
- You don’t get the full amount: Okay, so Floan has high fees. What’s worse is that they deduct this from the amount they send to your Airtel or MTN money account. For a loan of K100, I received K62 but pay back K100. This is a very strange structure.
Here is the fee and interest structure for the first loan I got of K100.
- Loan amount: K100
- Interest: There is no interest, just fees.
- Actual amount received: K62
- Upfront fees: K38 (K19 evaluation fee and K19 approval fee)
- Loan term: 7 days
- Total amount to repay: K100
Floan Loan App Zambia has a very strange loan structure
I have never seen any financial institution with a loan structure like Floan’s.
Effectively speaking, what they show you is the amount you will pay back. So if they say you can apply for K100, for example, you will get hit with fees that will be deducted from that K100.
Since you have K38 total in fees, you will only get K62 and pay back K100. Leave a comment if you have ever seen any loan structure like this.
Tips to get approved by Floan
- Make sure you pick people you speak with frequently as your next of kin. Floan checks your call records, so your next of kin should appear frequently.
- Use a phone with big Airtel and MTN money transaction messages. Since they ask access to your messages to verify your credit worthiness, it’s in your best interest to use a phone with multiple large transactions.
- Make sure you are in a bright space when taking photos of your NRC. Lots of people get rejected simply because their NRC is not clear.
- Pick your pay day from the 20th to the 30th of the month.
Bear in mind that Floan downloads your messages
When applying for a loan from Floan, your messages will be downloaded onto their system. If there are any sensitive messages you would not want any other person to see, you might want to delete them.
No one knows how well the Floan agents are vetted, meaning there’s no telling what any of them might do with your information.
Delete any information such as passwords from your messages before granting Floan access to your data.
Who should use Floan?
It’s not ideal if you want any substantial amount. To be honest, I don’t think there is much you can do with a first loan of K62.
If you want a bigger amount, you might want to try Zamloan and BIU Money if you are a civil servant, and Zamcash or Zeed Loan App if you are not a civil servant.
Better alternative to Floan
Zeed Loan: It has an initial loan amount of K200, which is much bigger than K62 from Floan. It also has a faster disbursement time of just 5 minutes. Zeed also gives you more time to pay back, which is 14 days vs. Floan’s 7 days.
Zamcash: It gives you an initial amount of K300, which is way bigger than the K62 you get from Floan. Zamcash does not access your messages or call records, which makes it safer. It has a clear interest and fee structure.
Zamloan: You get a serious amount of K10,000 for your first loan. However, this is only available to civil servants.
Does Floan have rude agents?
There have been reports on Facebook and reviews on the Play Store of customers being treated rudely for failing to pay on time.
This is something that a lot of these loan apps do. They apply a lot of pressure to get you to pay. To be honest, if you don’t have the money, try to talk to them and start paying slowly. You can even pay K10 for a start. What is important is commitment.
Will Floan message my contacts and post my details on Facebook?
This is a common threat from online loan apps in Zambia. However, there are no reports of Floan threatening customers with exposure for failing to pay.
Threatening to expose you is unethical, but exposing you by publishing your details resulting in a tarnished image is definitely illegal. There are no online mobile loan apps that are willing to take that risk.
What happens if you don’t pay Floan?
Apart from getting harassed with non-stop calls and messages, the worst they can do is submit your details to the Credit Reference Bureau (CRB).
Although some people unfamiliar with the system think this is a small matter, it can prove to be a significant hurdle should you try to get a loan at some point in the future.
No matter how far overdue your loan repayment might be, it is in your best interest to pay it back.