Recently, one topic wey dey trend for financial circles na high interest rates, especially 35% interest. For Nigeria, dis kind of interest rate no be new thing, but how e affect people and businesses dey very important.
In a recent announcement, Bankly, one Nigerian fintech company, talk about their InvestPro product wey offer 35% interest per annum over different periods like 90, 180, or 365 days. Dis kind of offer dey attractive to many Nigerians who dey look for ways to grow their savings.
But, for some people, especially those wey borrow money from friends or private lenders, 35% interest rate no be joke. A case wey come up on Reddit show how one person borrow $14,500 from friend and end up paying $24,000, including $9,500 in interest. Dis person manage to pay back by October 2024, but dey face threat of additional interest due to late payment. Many people comment say dis kind of interest rate be too high and possibly illegal in some places.
In Canada, for example, the highest legal APR on a loan no suppose exceed 35%, and many experts advise against borrowing at such high rates from private individuals or loan sharks.
So, while 35% interest rate might be a good deal for savers, it dey pose significant risk for borrowers. It is important for people to carefully consider the terms and conditions before entering into any financial agreement.
