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Micro-lenders charge high rates for Marikana miners

MICRO-LENDERS are still charging miners at Marikana up to 30% interest for loans that have to be repaid within a month.

This is contrary to the rules of the National Credit Act (NCA), which states that money lenders should charge maximum interest of up to 60% a year for a loan.

According to personal finance website Money Smart, the NCA refers to micro-loans as short-term credit transactions, and lenders should not charge more than 5% a month, 30% over six months or 60% a year on such a loan.

When Sowetan visited Marikana on Friday, personnel at micro-lenders and customers gave the newspaper a hostile reception. Some of the micro-lenders at Marikana include Rainbow Cash Loans, Cash Finance Cash Loans and Omega Cash Loans.

Staff of Tshelete Cash Loans and Cash In a Flash refused to talk to Sowetan. They also refused to give the contact details of the credit provider's owner.

"I am sick and tired of journalists," said one man, who was identified as the manager. A middle-aged father said although he had not dealt with micro-lenders in years, he had once taken out a loan. "I paid 30% interest on the amount I borrowed (from Tshelete)," he said.

The one-street town has 13 micro-lenders. In general, mineworkers refused to give Sowetan their names as they feared for their lives.

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