Man Who Took N500k Loan 1 Year Ago in Tears after Seeing New Amount He's Expected to Pay Back

• A Nigerian man has shared his pain on social media after seeing the amount he was asked to pay back to a loan company
• According to the young man, he borrowed the sum of N500k from the company only for the money to go up to N1 million after a year
• Social media users who came across the emotional video on the TikTok app stormed the comments section to console him

A Nigerian man's lamentation over a loan repayment amount has caught the attention of social media users.

The young man, who had borrowed a huge sum to launch his business venture, was shattered when he discovered the increasing debt he was expected to settle.

Man asked to repay N1 million to loan company

TikTok user @kingcharmmy shared an emotional video detailing his predicament, which quickly garnered attention and sympathy from online users.

In the video, he confessed that he had taken a loan of N500,000 from a prominent loan company to kick-start his business a year ago.

However, the amount had increased to N1 million, leaving him feeling overwhelmed and struggling to cope.

In his words:

"Life is so private. Nobody know say I borrow N500k from fairmoney start business a year ago and the business isn't booming yet and my loan amount has gone up to N1 million and recently they've been threatening to kpai me after they post my picture last year. I really wan pay this people God."

Reactions as man laments over debt

The man's plight touched TikTok users who flooded the comments section with words of encouragement and support.

Many expressed empathy, acknowledging the challenges of business and the weight of financial burdens.

@ZEE said:

"I hate loans cos it’s like the devil helping you."

@That sweet gril_Loveth said:

"Dem dey kpai person wey borrow money?"

@Makeup artist in Enugu said:

"Abeg if you borrow 200k, how many % is their interest rates. How much I go pay back? Someone help ooo."

@itzifunanyaosondu reacted:

"Money will definitely come and business will boom."

@Ayhorr said:

"Same here I paid dem but my business isn’t functioning anymore."

@CHOSEN ONE said:

"Chai and I almost borrowed was on the last step before I was distracted."

@No1hairosusuvendor said:

"Make una help me beg okash mk dem stop dey call my mama."

@Mummy Sam (Nov 18,19,22) said:

"The day fairmoney deducted 20k from my acc ehn I nearly cry naso the next day I con borrow money again them think say them wise."

@damolaunusual commented:

"Why would you borrow money to start a business? First mistake."

@Nelly Marie said:

"I really appreciated how you handled that situation. Your approach was very effective."

@Mbaiseboy said:

"Make i send them your location."

@linda said:

"Tiger credit posted my picture omo I wan die."

@thelaunderygirl added:

"Na 10k I borrow ooo."

@queen Amira commented:

"But we have known now."

@linda said:

"Palm credit is after my life."

@DoLah reacted:

"Fair money dnt add money now jxt there interest."

@Queen jenzy said:

"Not palmay calling me while I'm watching this."

@Ayhorr added:

"Same here I paid dem but my business isn’t functioning anymore."

Watch the video here:

Loan interests in Nigeria

Even though the Central Bank of Nigeria (CBN) pegged interest rates at 27.50%, some loan apps that offer collateral-free loans could charge up to 30% per month.

In February 2025, the apex bank said in its report:

"Decisions of the MPC

"The Committee was unanimous in its decision to hold all parameters and thus decided as follows:

"1. Retain the MPR at 27.50 per cent.

"2. Retain the asymmetric corridor around the MPR at +500/-100 basis points.

"3. Retain the Cash Reserve Ratio of Deposit Money Banks at 50.00 percent and Merchant Banks at 16 percent.

"4. Retain the Liquidity Ratio at 30.00 per cent."

Nairametrics mentioned Fairmoney, Palmcredit, Carbon, among others, as some of those regulated by the CBN.

It should also be noted that many loan apps use some credit scoring methods by analyzing smartphone data and transaction history, which can impact loan eligibility and interest rates.

Man cries out after borrowing loan

Meanwhile, Legit.ng previously reported that a Nigerian man was in a dilemma after seeing how much the N80k loan he took two years ago had grown to.

The man redownloaded the loan app after two years and was shocked to find out that he owed N1.4 million.

Joseph Omotayo, the HoD of the Human Interest Desk, contributed to this report, adding CBN's rule on banks' interest rates.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng