HAD it been at the facility’s offices, the queues would be winding outside and probably to the next streets.
But then, everything happens on the mobile phone or personal computer in the comfort of your home.
Only the messages chime on an individual’s phone that their application for a microloan has been successful.
In Zimbabwe, the economy is being rough on the youths, casting a long shadow of uncertainty, but the young population has found solace on tough days.
When the pockets are empty, they are turning to borrowing from a ZimLoan, a microfinance institution offering small, quick loans as low as US$9.
It’s their new opium as they seek to pass the day.
The money lender is, indeed, the day’s “altruist”, giving them a two-week moratorium to pay back considering that they are struggling to survive in this unforgiving economic environment, where the unemployment rate is soaring daily.
This seemingly easy access to credit has led to an ironic cycle of debt and despair, with some youths even borrowing money from their friends to repay the loans, in the process digging one hole to cover another.
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The lure of quick cash is undeniable in a country where job opportunities are scarce and basic necessities are often out of reach.
Zimbabwe youths, eager to escape from the jaws of abject poverty, flock to ZimLoan, hoping to secure small loans to buy basic necessities such as mealie-meal, cooking oil or rice, among others.
But then there are some who abuse the loan facility and secure money to buy alcohol.
The application process is simple and the funds are disbursed rapidly, making it an attractive option for those in dire straits.
The application process is done online via a clickable link to enter one’s details.
According to their website, youths can get a loan from US$9 up to US$100 and repay in 14 days with an interest of about 30%.
“Get a loan for up to US$100. Apply US$30, repay US$36 in 14 days. Fully-registered microfinance institution. No paperwork. Apply. 100% via mobile. Receive mobile money within 5 minutes,” the ZimLoan website reads.
It is simple like that, according to them, as it takes five minutes to get a quick loan.
The digital micro-lending platform has become a popular option for young Zimbabweans seeking quick loans.
However, the platform’s requirement for borrowers to provide references has led to a controversial practice.
Some borrowers are listing their friends as references without their consent.
This has created a rift among friends, with some feeling betrayed, while others first get an appreciation for the need of the loan before okaying the deal.
While ZimLoan aims to provide accessible credit, the lack of transparency in the reference process has raised concerns about ethical lending practices and the potential for misuse.
Tanaka Choruma, a medical student at the University of Zimbabwe, says he has been accessing quick loans up to US$30 from ZimLoan for bus fares.
“I started this last year when I got stranded one day. My friend introduced me to ZimLoan and now it’s like an addiction,” he told NewsDay Weekender.
“I have to pay so that I can get another loan. I have realised that most students at different colleges are taking those quick loans for basic things.
“However, some are borrowing to buy beer, which I find funny.”
However, the high interest rates and short repayment periods make it difficult for many youths to repay their debts on time.
When the time to repay lapses, the ZimLoan staffers make calls to the borrowers, who more often do not pick the calls.
In their relentless efforts to recoup the loans, the ZimLoan staffers get hold of the guarantors, who bear the brunt of their friends’ or colleagues misdemeanours.
The call intervals are usually a week in-between.
Meanwhile, no matter how many times you apprise the borrowers of the incessant calls, many of them do not make an effort to make right their “wrongs”.
Because the guarantor does not want to suffer the consequences of probably losing their possessions, they have to take the calls each time and assure the ZimLoan staffers that they will transmit the message.
Trapped in a cycle of debt, some youths end up blocking the ZimLoan staffers’ mobile phone numbers until they can manage to repay so they can access another loan.
These are not investment loans, but some form of assistance so that the financially-pressed can buy a few basics.
A ZimLoan employee who spoke to NewsDay Weekender on condition of anonymity said they are forced to make annoying follow-ups when clients fail to meet payment deadlines because they get their commissions from the interests paid by their clients.
When efforts were made to contact the firm’s leadership, the mobile phone numbers provided supplied as ZimLoan contacts were not being picked up.
Former Finance minister Tendai Biti told NewsDay Weekender in an interview that the country has no economy under the Zanu PF government.
“This means we don’t have a functional economy under this failed Zanu PF government,” he said.
“This regime has reduced the young generation to such an embarrassment of getting such a small amount of loans.
“We need to build a new society which has youths at heart to fight against issues causing drug abuse.”
The Zimbabwe National Statistics Agency (ZimStat)’s latest figures revealed that only 46,3% of Zimbabwe’s working age population are employed.
In its 2023 4th Quarter Labour Force Survey report, ZimStat disclosed that the working age population was 8 639 522, of which 4 003 121 were in active employment.
Government critic and economist Gift Mugano said: “We need a paradigm shift and a radical approach to our policies to create jobs, to offer opportunities for young people in terms of employment, in terms of empowerment, in terms of businesses.
“It’s a massive challenge we have ahead. So that is why you see most of these young people are drowned in drugs, then depression. And I don’t even understand, I’m questioning the sustainability of these small loans.”
He added: “I can only prophesy that there are risks of non-performing loans. Yeah, because if you are given US$9 to US$100, what would you do with such small amount of money?
“You would be forced to buy food or even to buy some drugs. It becomes a consumptive loan which would be difficult to pay back. So sometimes there is a danger of giving someone a small amount of loan because it therefore defeats the logic of it being a loan for business.”
The story of the youths and ZimLoan is a stark reminder of the human cost of economic hardship.
It highlights the urgent need for sustainable solutions that address the root causes of unemployment and poverty, rather than simply offering temporary relief through easy credit.
Until then, many youths will continue to risk it all in their quest for survival, trapped in a cycle of debt and desperation.
