Personal loans can help Zimbabweans cover urgent expenses, start small businesses, or consolidate debt. Here are the main types of personal loans and what you should know about them.
Unsecured Personal Loans
These loans don’t require collateral. Banks like CBZ, Steward Bank, and NMB offer them to salaried individuals. Interest rates are typically higher, and repayment terms range from 6 to 36 months.
Secured Personal Loans
If you offer collateral such as property or a car, you may get a better interest rate. These loans are ideal for larger amounts.
Microfinance Loans
Microfinance institutions like Untu Capital and EmpowerBank offer small loans, particularly to informal traders or low-income earners.
Things to Consider Before Borrowing:
Compare interest rates and fees
Check your monthly repayment amount
Understand penalties for late payment
Borrow only what you can afford to repay
