BRIDGING THE GAP: How responsible short-term lending empowers South Africans
By Niresh Gopichand
Niresh Gopichand is Risk Director at Atlas Finance and Director at MicroFinance South Africa (MFSA).
In South Africa, where financial pressures weigh heavily on millions, short-term loans often carry an unfair reputation. They’re seen as a last resort, a debt trap, or even a sign of financial recklessness. But the reality is that when used responsibly, these loans can be a bridge to opportunity, helping families cover urgent costs, supporting entrepreneurs in growing their businesses, and providing a safety net in tough times.
Many people associate short-term borrowing with mashonisas, unregulated lenders who charge sky-high interest and keep borrowers in cycles of debt. Others fall prey to online scams that promise easy money but end in financial disaster....