Money lenders: the main reason why people fear them
Most people in the world will agree that Africa is one of the best places to live just because they think there is less greed and more of nature and natural things in Africa, and that is true, but as a human being that wants to survive which is the most important part of our existence we do crazy things to survive because Africa is a land that is not full of opportunities, people seize every opportunity that they get, whether it is good or bad.
We have good and bad opportunities that come in exploring and exploiting people just because you see a weakness, and that weakness will be good for you in a way, so you exploit it. We have so many bad opportunities, people do more of that in Africa because good opportunity does not always comes around, so you have to exploit somebody to make money.
Money lending is a popular practice that occurs worldwide, including in Africa. However, it is particularly widespread in Africa, where there are people known as money lenders. Despite their terrible reputation, some people still seek their services. It is generally advised to avoid taking loans from these lenders as they often employ unethical tactics to ensure that you cannot repay the loan. There have even been stories of money lenders using fetishes means to seize property or collateral from people.
If you're wondering why you might consider praying or using unethical tactics to prevent someone who owes you money from paying back, it's because money lenders in Africa tend to be very cautious about whom they give loans. If they don't feel that what you're offering is worth more than the money you're borrowing, they may be reluctant to give you loans in the first place. Once they do give you loans, they'll do everything they can to ensure that they get it in folds, often by making it difficult or impossible for you to repay. If you've put up collateral or offered property as security, they may be particularly determined to make sure that they come out ahead.
Recycle for the rich
In some foreign countries, borrowing money is a common practice among the wealthy. Banks even call them to offer loans using their credit card, assets, and bank transaction details to give them loans. What makes it more appealing is that there are no taxes deducted from the money borrowed, especially when used to purchase properties. The government views this as a game since they are aware that the borrowed money will be repaid. Sometimes, the rich need to show their properties as part of the loan process, but it's still a good deal for them.
You see, it's a win for everybody in that country because they lend you money, and you pay some percentage they are trying to put on it. You make a good deal, everybody wins, but this is a different case in Africa because they don't give the rich loans, they exploit the poor who are vulnerable and never lend the rich money because it is certain that they will repay them.
The Government does this, and most money lenders do this. The mirror reason why the government does this in Africa is because most African countries do not even have a well-structured tax plan. everybody can get away with tax in Africa, to ensure gains they exploit those who are vulnerable.
The gap
It is often said that taking a loan from a money lender is a bad idea, yet many people still seek their help. This is often due to desperation when we overlook the fact that there is a high chance of not recovering our assets. We focus on collecting the money because certain things are essential, and we let our emotions guide us.
Most rich African men don't borrow money from money lenders even if they want to, they will never borrow them. you might convince a money lender to lend you money, and his static does not work on you, they will always put an extra percentage on their money just because they know you will pay back. Instead of collecting 10 to 20%, they are making 40%. That is how terrible they are.
More from dwayne16
Instinct and knowledge the polar in making a financial decision
Greed: the unsatisfied hunger for money
Is it stupidity or manipulation
Analyzing the market is good for everyone in crypto.
Invest in what you understand.
Thanks for your time.
Posted Using LeoFinance Alpha
Money lenders can be a tough deal anywhere, but it sounds like it's especially challenging in Africa. It's essential to be cautious and explore other financial options. Let's hope for better financial opportunities and less exploitation in the future.
It is crazy, it has always been a bad experience with money lenders here in africa
Many people in Africa don't have option when they are in dier need of money since financial institution doesn't loan people money easily. So many had to resort to the traditional money lender just to get out of trouble in the first place without knowing that they just called for more trouble as it is often difficult to repay such a loan.
Like you said, developed nations are well organised. They have a working system that makes it easy for financial institutions to offer loan since they know you won't run away, but here in most of the African nations. There is no database to keep people in checked.
money lenders often resort to extreme measures to prevent borrowers from repaying their loans, just so they can take possession of their collateral. Unfortunately, there have been numerous accounts of how they mistreat their clients. It is just better to stay away from them
I agreed with you 100 percent. People should just leave their service.
There was a time I get into trouble with a money lender due to the high interest rate. Since then, anything with money lender no concern me
Omo! Those people can be crazy and it just not going area we must never let our emotions push us towards them
I personally know someone who lost his home to money lenders.
That is terrible
Money lenders mostly in Nigeria are really something else, I cant never go and borrow money for them because their conditions are two much. Thanks for sharing.
I think all money lenders are cautious. Even here in the US, the banks have tightened down on who they lend to and unless it's being backed by the government, they don't really lend out that much because they don't want to be on the hook for things. It's a bit weird to see them overcharge a good customer though in Africa though.
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.