The Bank of Zambia (BOZ ) has advised the general public to only deal with licensed micro financing institutions to avoid being exploited and falling victim to fraudsters
Bank of Zambia Non-Banks Financial Institutions Supervision (NBFIS) department officer Moonga Mizinga said the central bank has adequate mechanisms in place to regulate the micro-finance institutions and protect customers from being exploited.
Mr Mizinga said it was for this reason that members of the public must only borrow from institutions licensed by Bank of Zambia because they operate under set procedure and could be held liable if they are exploiting clients.
He was speaking in Mansa during a financial education meeting held at Mansa Hotel yesterday.
Mr Mizinga also urged Mansa residents to report any unlicensed institution that is lending money to the general public or asking people to deposit money with it.
He said the central bank issues licenses to all non-bank financial institutions after assessing their viability, and all institutions that have its mandate are required to display an original or copy of the license issued by Bank of Zambia.
Mr Mizinga also disclosed that all individual money lenders who have financial capital of above K25 million are supposed to register with the central bank, adding that those who have lend out at that threshold but have not obtained a license are illegally carrying out their business.
Meanwhile acting senior inspector for NBFIS department Sylvester Mutale also cautioned members of the public not to be enticed to give out their money as down payments to any financial institutions that promise to be lending loans.
He said there have been cases in the country in which people have been swindled by financial institutions that have disappeared after collecting a lot of money from members of the public on the pretext that it would issue them with loans.
It also came to light during the one day financial education meeting that an unlicensed micro-financing institution is reported to be going round collecting money from traders with a view of giving them loans.
The participants said the named financial institution is asking for 15 percent down payment for a loan of K100,000.00 which the traders have to repay in installments of K15,000.00 within seven days.
In response, Mr. Mizinga said he does not remember any financial institution by the name of Montice being registered by the central bank and promised that the department was to do its home work and investigate the matter.
The Bank of Zambia team comprising Non-Bank Financial Institution Supervisory Department employees is on a tour of Luapula province conducting financial education meetings targeted at people in the formal and informal sector.
The team held its first meeting in Mansa and will hold similar meetings in three other districts which include Kawambwa, Nchelenge and Samfya.
[ ZANIS ]
Well banks will find all sorts of ways and means NOT to lend people money, this is why citizens have turned to high interest bearing loans/kaloba.
Ceec also makes it impossible for one to access funds so what are we the poor left to do?
Why isnt a business proposal enough for lending instituitions to lend an entrepreneur?
In other countries all one needs is a good business proposal n they are given funds.
Graduates cannot find employment and cannot access funds from the so called registered financial instituitions.
Infact i think these same dodgy micro finance are owned by the bankers themselves.
They deliberately deny people acces to loans because they know they will turn to loan sharks/micro fin institutions…
“all individual money lenders who have financial capital of above K25 million are supposed to register with the central bank”
The process is too long.Somebody staying in Nakonde should register in Ndola.Unless BOZ opens up registration centres in Post Offices.
There are guys however who work in the Banks that “steal” depositors money,lend it out @ an interest then credit the account later.
Jade walasa!
If enterprenuers cant access funds from Banks even with contracts in their hands,how else can they finance their businesses.Banks are just to beaucractic in Zambia eish!!!!!!!!!!!!!