A Guide to Loans & Credit Cards in Zimbabwe

Accessing credit in Zimbabwe requires a clear understanding of the different products available and the strict requirements from financial institutions.

Types of Loans

• Personal Loans: Offered by commercial banks, usually to salaried individuals who bank with them. The loan amount is often based on your monthly salary.
• Microfinance Loans: Offered by Microfinance Institutions (MFIs). These are typically smaller, short-term loans with higher interest rates, often targeted at civil servants or small business owners.
• Asset-Backed Loans: This is a common form of secured lending where you use an asset as collateral. For example, you might use your car's registration book to secure a loan. If you default, the lender can seize the asset.

How to Apply for a Loan

1. Check Eligibility: The first step is to check the lender's requirements. Most will require you to be formally employed with a salary paid into a bank account.
2. Gather Documents: You will typically need:
   • Your National ID.
   • Proof of residence.
   • Recent payslips (usually for the last 3 months).
   • A letter from your employer confirming your employment.
   • Recent bank statements.
3. Application and Assessment: You will complete an application form, and the lender will assess your creditworthiness and ability to repay.

Understanding Credit Cards

While some banks offer cards branded as "credit cards" (e.g., Visa or Mastercard), they often function differently from those in other countries.

• Pre-Funded: Most of these cards must be pre-funded from your Nostro FCA account. They act more like a debit card for international payments (e.g., online shopping, subscriptions) rather than a tool for borrowing money.
• Limited Credit Facilities: True credit facilities, where the bank gives you a borrowing limit, are rare and are typically only available to high-net-worth individuals with a long and stable banking history.