A group of unlicensed money lenders in Lusaka has appealed to the government to simplify the process of registering a business at the Patents And Companies Registration Agency (PACRA).
Speaking to Our Bantu News in an interview, the money lenders who sought anonymity explained how an easy application process is important because it will promote efficiency, help them attract a wide of customers and most importantly ensure compliance with legal frameworks.
The lenders expressed that they play a crucial role in providing financial assistance to borrowers who don’t have access to traditional banking services and have asked traditional banking services to stop encouraging borrowers to refrain from seeking assistance given the current economic challenges.
The Bank Of Zambia recently expressed concern with the current trend of signing documentation that allows for the borrower’s property to be sold off once they default and the lenders justified
this move stating that it is the only way of protecting their assets from crooked borrowers.
The long procedure of registering a business at PACRA coupled with the expensive cost of this venture has been cited as the main reason for not registering. The lenders have asked the government to help simplify this process and aid the Zambian people in conducting genuine commercial activities.