Black Sash Study Finds Loan Sharks Feed Endless Cycle Of Debt

Human rights organisation, Black Sash has raised concern about the growing number of borrowers whose IDs, bank and SASSA cards are withheld by illegal loan sharks.

The organisation says desperate South Africans, who struggle to put food on the table, end up borrowing money at exorbitant interest rates to survive, while other people are forced to buy groceries on credit at local tuck shops.

They opt to borrow from loan sharks as they do not qualify for long-term loans at commercial banks.

One of the SASSA grant recipients whose cards are being held by grocery creditors is Kedibonye Marumodichabe from Tshidilamolomo Village in North West.

She receives a child support grant for her five children. However, she has not been getting this grant for almost two years as the SASSA cards are at the local tuck shop, serving as surety for her grocery credit.