A combination of tepid wage increases and rising inflation is pushing household debt in Botswana to all-time highs.
To compound the problem, the ratio of non-performing bank loans is at unacceptable levels – and that means more and more Batswana have compromised credit records.
Botswana’s household debt in numbers
According to recent statistics, consumer credit in Botswana has soared by more than 77 percent, from an 11-year average of P19,8 million to the devastatingly high figure of P35,2 million recorded in January 2019.
What’s even more shocking is that household debt represents 61 percent of total debt – and unsecured personal loans are by far the main contributors.
The vast majority of Batswana are borrowing money to pay for day-to-day expenses, rather than to invest in assets, like land or property.
If that’s not bad enough, loan defaults are more and more prevalent. The latest figures for June 2018 indicate the country’s non-performing loan ratio was at around 5 percent.
Outstanding credit extended by banks in 2018 amounted to a staggering P55 billion.
The adverse effects of a poor credit score
Consumers who do not honour loan agreements end up with dodgy credit histories, and below-average credit scores.
Creditors like banks, pay day loan providers and microlenders use credit records to assess the risk of lending clients’ money, and to calculate the rate of interest on loans.
Batswana with poor credit scores pay a lot more to borrow money from banks and other loan providers – that’s if they qualify for an unsecured loan at all.
That leaves one of two options – to run the gauntlet of unscrupulous loan sharks, or to leverage the value of personal items as security for a legitimate and affordable asset-based loan.
Bad credit score? How to get a loan in Botswana
lamna Botswana offers instant cash loans backed by high value assets – luxury wristwatches, gold and diamond jewellery, original artworks, boats, motorbikes and cars.
The only criterion is the asset has to be fully paid up, and belong to the person applying for the loan.
As loans are secured by collateral, there’s no need to submit bank statements or payslips, and lamna Botswana does not request credit records or impart client information to credit bureaux.
The asset is held in a secure facility with strict access control until the loan amount and agreed interest are paid back.
Once the debt is settled, the watch, jewellery, painting or vehicle is returned, in the same condition you left it.
At lamna Botswana, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or valuable works of art. For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form