Desperation drives many to seek loans
Mdantsane folk queue for some short-term cash cheer
AN INCREASING number of cash-strapped consumers have been forced to take out shortterm loans to make it through the festive season.
In Mdantsane, young and old were yesterday seen queuing outside one financial loan business, forming a long, snake-like pattern along the corridors.
Mncebisi Mapasa, 74, from Nxarhuni Location, said it was his first time applying for a loan and hoped to qualify.
“I have many problems and they all require money,” he said. “I am anxious to know how much I qualify for.”
Mapasa said the festive season placed a lot of strain on people.
“Among the problems I have is that I need to buy Christmas clothes for my four grandchildren. Never mind their school uniform and stationery needs for January, the list is endless,” he said.
Mapasa said he would be using his old-age and grandchildren’s child support grant to acquire the loan, which would be deducted directly from those accounts.
Unemployed Nonceba gXabe, 47, had travelled from Ndevana location to the Mdantsane Mall in a bid to get some money. Speaking to the Dispatch, she said she was desperate to get R1 000.
“I am here because there is no food at home and I have no other source of income. Schools have closed now, children are visiting on holidays and that means they will have to eat, eat, eat.
“There’s no nutrition programme running during the holidays like they have at school. And as the elder in the household, I must see to it that they don’t go hungry, and also have Christmas clothes like other children.”
The mother of three said although she was not employed she relied solely on her children’s grants which allowed her to qualify for a loan of up to R1 000 at a financial service provider.
“I have been coming here for a while now to make ends meet at home and it is most convenient because they give me R1 000 and I pay it back over six months with the children’s grant money.”
East Londoner Kholiswa Bayi, an administration clerk waiting for assistance at another loan provider in Central Square, said she had taken a day off from work to sort out her problems.
“This period is just very difficult and the pressure is immense from family, children and friends.
“My salary can barely cover me on a normal month, I won’t survive this season if I don’t get money now.”
Border-Kei Chamber of Business director Les Holbrook warned consumers to take care with their finances over the festive season. He said anyone taking out a loan should make sure it was with a reputable company.
“Firstly, money-lending is very carefully regulated and all legitimate lenders have to be registered and comply with the DTI’s legislation.”
He said interest on repayments was governed and anyone taking out a loan should make sure they were not being asked to exceed the loan/income ratio. —