WASHINGTON DC —
Some Zimbabweans say they are now entirely dependent on loans with high interest rates from money sharks.
Some residents of Victoria Falls, Gwanda, Gweru, Harare, Masvingo and Bulawayo, who spoke to Studio 7, said the loans, commonly known as chimbadzo, are difficult to repay as the money sharks demand interests of up to 100 percent.
Recipients who fail to repay the loans pay heavily as their property is seized and sold at giveaway prices.
Gwanda resident Mavis Nare says broke people have no option but to get these high interest loans.
“We do not have any dependable source of income and so we end up getting these loans which are very difficult to repay. Once you start getting chimbadzo, you start having serious problems,” says Nare.
The Reserve Bank of Zimbabwe recently bemoaned the sprouting of many money clubs, including pyramid schemes, which it said were ripping off unsuspecting members of the public.
Some residents of Victoria Falls, Gwanda, Gweru, Harare, Masvingo and Bulawayo, who spoke to Studio 7, said the loans, commonly known as chimbadzo, are difficult to repay as the money sharks demand interests of up to 100 percent.
Recipients who fail to repay the loans pay heavily as their property is seized and sold at giveaway prices.
Gwanda resident Mavis Nare says broke people have no option but to get these high interest loans.
“We do not have any dependable source of income and so we end up getting these loans which are very difficult to repay. Once you start getting chimbadzo, you start having serious problems,” says Nare.
The Reserve Bank of Zimbabwe recently bemoaned the sprouting of many money clubs, including pyramid schemes, which it said were ripping off unsuspecting members of the public.