The country has seen a increase in new lenders in South Africa due to banks been so strict with FICA and the National Credit Act. These lenders offer unsecured credit agreements and are not governed by the NCR or any other government body.

Mashonisa is used to describe a informal lender (loan shark) and, interest rates are extremely high with between 30% and 50% charged regardless of the loan term. And, when non-payment is an issue, collection practices are sometimes severe and include intimidation, social shaming and the seizure of assets.

A bank institution will only provide a loan based on affordability, most people who therefore end up at a loan shark cannot afford these repayments and end up been worse off than before, The Government needs to step in and regulate these mashonites.