Academic warns against borrowing from informal sector

A University of Botswana (UB) economist, Dr Nathan Okurut has warned against borrowing money from the informal sector. Okurut was presenting a paper on credit and economy at the National Credit Convention whose theme was "an in-depth look into the environmental and economic factors affecting credit in Botswana."

The convention was held at the Botswana Bureau of Standards last week. 
The UB academic said when people have over borrowed money from the banks, they go to the informal sector where the interest rates are not controllable. 

He said the informal traders charge as much interest rate as 20 percent with some charging upto 30 percent.He said once a client has borrowed money from the micro lenders, he or she would always depend on them. 

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