Loan Sharks 20% Interest Kills Local Businesses & Jobs

How can small businesses make profit or create jobs in countries with loan interest rate around twenty percent? When it is about high-risk business and individuals, bank may justify such outrageous lending rate to cover their high probability loss. But any rate above twenty percent to businesses; are given by Mafia, check cashing or Bureau de Change and exploitation of the poor without bank accounts in very depressed neighborhoods. Outrageous Loan rate

Africans always deal with triple whammy of high interest rate, inflation and devalued currency. Zimbabwe is a special case. There is no way anyone can justify perpetual high interest rate in African countries. Generally, inflation has always been the enemy of the common man; more so in Nigeria than in Ghana. Everything goes up and defies all western economic models of M0, M1 and M2. The exchange rates only get worse, not better from one administration to another

A country must have tangible exports as income before devaluing its local currency, otherwise it might as well put itself out for sale. Apart from fighting corruption to the barest minimum, the two immediate steps Nigeria must take right now while waiting for diversification of economy and increased exports are: 1. fixing the refineries 2. patronize locally made products and food. The saving from these two areas will save the foreign reserve and firm up its currency.

Saving money on refined oil products that are locally produce can buy time, should have bought time. It is the best way to firm up naira purchasing power. Nigerians continue to blame Central Bank for indulging them to import foods that are available but neglected at home. Even more important; imported finished petroleum products when there were enough disabled refineries. They imported Brazilian hair, nylon bags and even got into importation of toxic waste!!!

https://www.youtube.com/watch?v=p9u1BpRfBQk&feature=player_embedded#t=18

http://article.wn.com/view/2016/02/06/Loan_Sharks_20_Interest_Kills_Local_Businesses_Jobs/

http://www.modernghana.com/news/673268/loan-sharks-20-interest-kills-local-businesses-jobs-.html

So true, my quest for a ten mil loan led me to places. Two of which were gonna charge 20% per month. In the operations manager's head am to pay 0.9% daily interest payable weekly.

Banks will request my ancestors' kidney and finally tell you there's no money when you get it.

Scam system. CBN tells us it should be 9% PA but the owners of the money says it is 24-30% PA. They take advantage of poor infrastructures like power,road,CSR to inflate running cost of their banks and in turn justify their huge interest. Who do you blame if not the ineffectual system and past leader who refuse to improve the system.