Personal loans are the most popular type of loan in Zimbabwe, with loan terms starting from as short as seven days. Individuals often use these loans in emergency situations, such as covering medical or funeral expenses, or for other financial needs like home renovations, education costs, and personal expenditures. Personal loans are usually unsecured, requiring minimal paperwork, and do not require collateral. However, the amount borrowed is typically small, and interest rates tend to be high, varying among lenders.
Type of Personal Loans Available in Zimbabwe
Unsecured Personal Loans
These loans are issued by lenders without any collateral requirement. However they are usually offered based off a relationship which has been created between the lender and the borrower, which is typically an account holder relationship at a Bank or frequent borrower at a financial institution. The amount borrowed is usually small with a high interest rate and a short-repayment period.
Required Documents
- Current proof of residence
- Proof of income
- National ID // Passport
Secured Personal Loans
These loans are borrowed against an asset such as a vehicle, house, household items or even electronic gadgets such as phones. The amount borrowed is usually large as compared to that of the unsecured personal loans. Interest rates for these type of loans can be relatively low and the payment period is flexible and can be spread over a long period of time.
Required Documents
- Current proof of residence
- Asset Ownership Documentation
- National ID // Passport
- Collateral
Salary Based Loans
These are loans which are borrowed against the borrower’s salary, repayments are done automatically from the salary. In Zimbabwe these are popular among civil servants such as teachers, nurses, security forces etc. Those in formal employment can also get access to these loans. The amount available for borrowing is dependent on one’s salary, the interest rates are usually low as compared to other types of personal loan due to the low risk nature of these loans.
Required Documents
- Current proof of residence
- Current payslip within the last 3 months
- National ID // Passport
Instant loans
These are usually offered via Mobile wallets with the application process done online. It usually takes less than 10 minutes to get this type of loan, it has no paperwork required. The loans are relatively small and repayment period is short. Some of the popular Instant loan platforms in Zimbabwe are Zimloan and Kashagi by Ecocash and Steward Bank.
Required Documents
- National ID
- Next of Kin Details