Kaloba loans refers to informal loans given against collateral by unregistered and unregulated credit lenders (Shylocks) in Zambia.
The loan facility also known as Pawn loans,Shylock loans, or Loans against items in other parts of the world are becoming popular in Zambia especially the province of Kaloba.
Kaloba Loans - Interest Rates, Loan Limits
Kaloba loan limits can be from as low as K100 to as high as K50,000. The loan amount greatly depend on the value of the items being used as collateral.
I f a customer present a new ,high value item, he can easily get a high loan amount. On average, kaloba loans don't go over 50% the value of the item being used as collateral against the loan.
Kaloba loan interest rate is extremely high at an average of 150% per month. There's also a possibility of accruing more charges as time goes on if the customer fails to pay the loan on time.
Apply for Kaloba Loans in Lusaka, Zambia
Loan application is simple by visiting a Shylock with the item to be used as collateral and all required documents for example receipt and identification items.
The Shylock will have a look at the provided item , value it and come up with a loan offer. If the customer accepts the offer and payment terms, deal is considered sealed and the loan is disbursed instantly.
Pay Kaloba Loans
As agreed during loan approval, a customer will have to make kaloba loan payments appropriately without failure. Late payment is allowed to a certain agreed extent after which the Shylock is allowed to sale the item to recover his or her money.
Kaloba loan repayment tenure is 30 days on average.
It is therefore advised that consider a kaloba loan only if you're sure you'll repay the loan. This is because there's risk of loosing your item used as collateral.
Where are Kaloba loan lenders
As earlier said, these are informal , unregulated lenders. For this reason, they're not well exposed like the commercial banks.
To find one, move along the streets of Lusaka and observe carefully, you'll see them.
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