Encountering a “Loan Already In Use” error can be incredibly frustrating when you urgently need funds in Nigeria. This common message blocks your access to credit across various apps and platforms. This definitive guide provides expert tips and proven methods to resolve this issue, tailored for Nigerian borrowers.
We’ll explain the specific causes within the local digital lending ecosystem and walk you through practical, actionable steps to regain your loan eligibility. Understanding this error is the first step to fixing it and accessing the financial support you need.
Requirements / What You Need
Before you begin troubleshooting the “Loan Already In Use” error, gather the following information and prepare for the process. Having these items ready will save you significant time and stress.
- Your Bank Verification Number (BVN): This is the most critical piece of information. Lenders use your BVN to track your loan profile across all platforms. You will need it to check your credit status and for any verification calls.
- Registered Phone Number and Email: Ensure you have access to the phone number and email address linked to your bank account and the loan apps you’ve used. You may need them for OTP verification.
- List of All Loan Apps Used: Write down the names of every digital lender you have an account with, such as Branch, FairMoney, Carbon, Aella Credit, or Renmoney. Note your login details for each.
- Stable Internet Connection & Patience: The process involves checking websites and waiting for customer service. Be prepared for potential network issues; consider using a reliable cyber café if your mobile data is unstable.
- No Direct Fees: Checking your credit report with the CRC Credit Bureau or FirstCentral Credit Bureau may cost between ₦500 – ₦1,000. However, most initial troubleshooting steps with lenders are free. Beware of scams asking for “clearance fees.”
Step-by-Step Process
Step 1: Identify the Source of the Active Loan
First, you must pinpoint which lender is reporting an active loan on your profile. Log into every loan app on your phone one by one. Check your dashboard or loan history section for any “Active” or “Ongoing” loan. Often, the error comes from an app you may have forgotten about. If you cannot log in, use the “Forgot Password” feature immediately. A common Nigerian issue is using an old SIM card; ensure your registered number is active.
Step 2: Check Your Credit Report
Visit the website of an accredited credit bureau in Nigeria, such as **CRC Credit Bureau** or **FirstCentral Credit Bureau**. You will need your BVN, full name, and phone number to request a summary of your credit report. This report will list every institution where you have an active loan or a non-performing loan (NPL). This is the most authoritative way to see all your liabilities across different platforms. Be patient, as generating the report can sometimes take a few hours due to network or system delays.
Step 3: Contact Customer Support Directly
Once you identify the specific lender, contact their customer support immediately. Use the official channels within the app, their website, or their verified social media pages (like Twitter/X, where they are often responsive). Explain clearly that you are getting a “Loan Already In Use” error and believe it is from their platform. Have your registered details ready for verification. Be prepared for back-and-forth communication; persistence is key.
Step 4: Settle or Clarify the Outstanding Loan
If the report shows a genuine outstanding loan, you must settle it according to the lender’s procedure to clear your profile. If you believe it is an error—for example, a loan you already repaid but is still showing as active—you must provide proof. This proof can be a bank transfer receipt, a transaction alert on your phone, or a screenshot from the app showing a “Paid” status. Send this evidence to their support team and request a status update.
Step 5: Request a Status Update or Clearance Letter
After repayment or dispute resolution, do not assume the system updates automatically. Politely but firmly request that the lender update your loan status to “Closed” or “Settled” in their system and with the credit bureaus. Some institutions may provide a **loan clearance certificate** or confirmation email. Keep this document safe, as you may need to present it to another lender if the error persists.
Alternative Methods
If the digital process fails, consider these alternative approaches tailored for the Nigerian context. Sometimes, direct human intervention is necessary to resolve systemic errors.
1. Physical Bureau Verification Centre: Visit a physical office of a credit bureau like CRC Credit Bureau in Lagos, Abuja, or Port Harcourt. This is better when you suspect identity mix-ups (e.g., your BVN is linked to someone else’s debt) or if you need hands-on help interpreting your report. An agent can provide a printed report and guide you on the dispute process in person.
2. Escalation via Regulatory Bodies: If a lender is unresponsive or the error remains unresolved after weeks, you can file a formal complaint with the Central Bank of Nigeria (CBN) through its Consumer Protection Department or the Federal Competition and Consumer Protection Commission (FCCPC). This method is best for protracted disputes where you have evidence of the lender’s negligence. The regulatory oversight often prompts a faster resolution from the financial institution.
Common Problems and Solutions
Problem: “I Have Repaid, But The Loan is Still Showing as Active”
This is a frequent issue due to system synchronization delays between the lender and the credit bureau, or a missed final payment like a forgotten insurance fee. The lender’s portal may show “Paid,” but the bureau hasn’t received the update.
Solution: Gather all your proof of payment—transaction alerts, bank statements, and in-app payment confirmations. Contact the lender’s support and send this evidence, specifically requesting they update your status with the credit bureau. Follow up every 48 hours until you receive a clearance confirmation email.
Problem: Credit Bureau Portal is Down or BVN Check Fails
Nigerians often face this when the bureau’s website is slow, unresponsive, or rejects valid BVN details due to network glitches or server overload, especially at month-ends.
Solution: Try again during off-peak hours (early morning or late night). If it persists, use the alternative USSD code *565*8# for a basic credit status check. As a last resort, visit a physical verification centre or use a different internet connection, like a cyber café with a stable Wi-Fi.
Problem: Loan App is Defunct or Customer Support is Unreachable
You may discover the lender reporting your active loan is an app that has shut down or has no working customer care lines—a real risk in Nigeria’s dynamic fintech space.
Solution: Your direct point of contact shifts to the credit bureau. File a formal dispute directly with the bureau (CRC or FirstCentral) using your BVN. They are mandated to investigate and contact the lender on your behalf. Also, report the defunct entity to the FCCPC via their official channels.
Fees, Costs and Timeline
Resolving a “Loan Already In Use” error involves minimal official costs but requires awareness of potential scams. The primary fee is for your credit report, which typically costs between ₦500 to ₦1,000 from bureaus like CRC or FirstCentral. There is no official fee to have your status updated by a lender after repayment; this is their regulatory obligation.
Be extremely cautious of individuals or “agents” at cyber cafés or on social media who claim they can “clear” your BVN for a fee of ₦5,000 or more—this is a scam. The process must go through the official lenders or bureaus. The timeline varies: if repaying a loan, your profile may update within 24 to 72 hours. For disputes and bureau investigations, expect a resolution within 5 to 10 working days. Delays are common if the lender is unresponsive, which is when escalating to the CBN or FCCPC becomes necessary.
Warnings and Scams to Avoid
As you work to fix this error, stay vigilant against prevalent scams targeting desperate borrowers in Nigeria.
- Avoid “BVN Clearance” Agents: Ignore anyone on WhatsApp, Facebook, or at local cyber cafés offering to “clean” your loan record or BVN for a one-time fee (e.g., ₦3,000 – ₦15,000). Your BVN status can only be updated by the legitimate lender or credit bureau through the official process.
- Beware of Fake Customer Support: Scammers create fake social media pages and Google ads mimicking real loan apps. Only use contact details from the official app or website. Never share your BVN, OTP, or banking app login details with anyone claiming to be support.
- Don’t Pay “Processing Fees”: No legitimate lender or bureau will ask for an upfront cash payment via transfer to a personal account (e.g., UBA, Opay) to resolve this error. All official fees are paid through secure, integrated payment gateways on their platforms.
Acceptance, Use and Next Steps
Once the “Loan Already In Use” error is resolved, your updated status is accepted across the entire Nigerian digital lending ecosystem. This includes all major loan apps (FairMoney, Branch, Carbon), microfinance banks, and formal financial institutions that check your credit report before disbursement. Your corrected profile is reflected with the credit bureaus, which these platforms query in real-time.
Your immediate next step should be to wait at least 3 to 5 working days after receiving confirmation from the lender before applying for a new loan. This allows systems to sync fully. You can then proceed cautiously: start with a small loan amount from one reputable platform to test the waters. A successful disbursement confirms the issue is fixed.
However, understand the limitation: clearing this error does not guarantee loan approval. Your eligibility will still depend on your income, transaction history, and the lender’s current risk assessment models. Maintain a healthy financial profile by repaying any new obligations promptly to build a positive credit history.
Frequently Asked Questions
How long does it take for my BVN to clear after loan repayment?
There is no permanent “clearing” of your BVN. After you repay a loan, the lender should update your status to “Settled” with the credit bureaus. This update typically reflects within 24 to 72 hours. However, always get a confirmation from the lender and wait a few days before applying elsewhere to ensure all systems are synchronized.
Can I get a loan from another app if one app shows this error?
No, you most likely cannot. Most legitimate loan apps in Nigeria use the same credit bureaus (CRC, FirstCentral) for checks. If one app sees an active loan, others will see the same information. You must resolve the active loan status first before any other platform will approve a new disbursement to you.
What does “Loan Already In Use” mean on FairMoney or Branch?
It means their system, via a credit bureau check, has found an existing active loan registered under your BVN. This could be an unpaid loan with their own platform, a loan with another app, or sometimes a system error where a repaid loan is still flagged as active. It’s a risk-control measure to prevent multiple indebtedness.
Will this error affect my ability to open a bank account?
Generally, no. Opening a standard savings or current account in Nigerian banks primarily requires your BVN for identity verification, not a deep credit check for existing loans. However, this error and any associated default will severely affect your ability to access bank overdrafts, credit cards, or formal loan products from that bank.
I was defrauded; a loan was taken in my name without my knowledge. What do I do?
This is identity theft. Immediately file a report at the nearest police station and get a police extract. Then, report the fraud to the specific lender and the credit bureaus with your BVN, providing the police report. You must also report the incident to your bank and the Central Bank of Nigeria (CBN) through its dedicated channels.
Is there a way to check my loan status for free?
Yes, you can use the USSD code *565*8# on your registered phone number for a basic, free credit status check from the NCC. It will tell you if you have a non-performing loan. For a detailed report listing all lenders, you will need to pay the official fee (₦500-₦1,000) to a full credit bureau.
Disclaimer
This article is for informational purposes only and reflects general procedures in Nigeria’s digital lending landscape as of the date of publication. It does not constitute legal or financial advice. Regulations, platform processes, and fees are subject to change. Always verify information directly with the official credit bureaus, your financial institution, or the relevant lender for your specific situation. The author is not affiliated with any loan app or credit bureau mentioned.