NBFIRA to clamp down of illegal microlenders

Tumelo Mouwane | Thursday October 13, 2016 15:40

Speaking at a full council seating here, communications and public affairs manager at the regulatory body, Tapologo Kwapa said Batswana continue to fall victim to cash swindling due to unlicensed cash loaners who operate within their homesteads at worrisome amounts of interest rates.

Kwapa further said NBFIRA has embarked on a process to flush out individuals who have continued to engage in microlending activities without proper licencing.

“Batswana continue to be swindled unimaginable amounts of money due to unauthorised cash loans within their neighbourhoods. People should know that any unlicensed cash loan is illegal,” he said.

“The law stipulates that after three consecutive months of failure to pay by an individual to any cash loan, the interest must be stopped immediately and instead the individual must be charged only five percent of the interest.

This is not what is taking place with the unregulated cash loans and we want to extend a warning to those engaged in such practices,” he said.

Kwapa further said penalties for any individual who is caught are stiff to deter such practices.

“If one is caught engaging in illegal cash loan operation, they will be charged P2,500 per day from the day they started the business to try to curb the trend,” he said.