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By Palesa Matlala
- A Soweto loan shark says more people borrowed money after December spending and rising prices, leading to record interest earnings.
- Borrowers include workers, pensioners and students, with high interest and seized goods used to recover unpaid loans.
A loan shark operating in Emdeni, Soweto, says the 2025 festive season was his most profitable period since starting his business.
The 47-year-old, who runs an illegal lending operation and says rising living costs and festive spending pushed more people to borrow money.
He said that he started lending money in 2015 while working as a cleaner. He first loaned small amounts to colleagues and charged 25% interest per month.
“If they didn’t pay, the amount would double,” he said.
After saving money for a year, he officially started his loan business, which he calls Marikana FSP.
By 2018, the business had grown enough for him to quit his job and survive only on interest payments.
His clients include students, pensioners and employed people. Loans range from R200 to R10,000.
He said his business runs throughout the year, but 2025 stood out because of the high cost of living and people overspending during the festive season.
He said many clients struggle to repay their loans, even with added interest.
When payments are missed, Mathibe said he sends bouncers to collect goods from clients’ homes.
“I take their belongings and sell them to pawn shops to recover my money,” he said.
Research shows that debt levels are rising sharply. The 2025 third-quarter Debt Index found that 95% of people who applied for debt counselling relied on personal loans, while 22% regularly used overdrafts.
These are the highest levels recorded in the past decade.
The loan shark said he made more than R15,000 in interest from people paid on the 15th of the month alone, and expects the surge to continue until February 2026.
Pictured above: A woman holding money.
Image source: File
