Zimbabwe: 'Housing Loans Most Popular'

May 12, 2017 | Zimbabwe Independent; All Africa

Employees hold more housing loans and personal loans than car loans with the banking sector getting the majority of the loans, a survey has revealed.

Employees hold more housing loans and personal loans than car loans with the banking sector getting the majority of the loans, a survey has revealed. The study was carried out by Industrial Psychology Consultants and is titled Financial Wellbeing Survey Zimbabwe Employers Loan. The average housing loan amount in urban areas is US$42 000 whereas the average loan amount in rural areas is US$13 000, the survey revealed. "For personal loans, housing loans and car loans, the banking sector is consistently among the sectors whose employees hold more loans," the survey revealed. "Furthermore, interest rates in the Banking sector are the lowest. In other words, the cost of borrowing is cheapest for employees in the banking sector." There were 830 participants in this survey. Most of the participants (74%) in the survey were in the US$500 to US$3 000 income bracket. The survey revealed that among respondents in the "Below US$500" income bracket, none of them have car loans. "However, participants in the same bracket have personal loans and housing loans indicating that transport is not a high priority," the report noted. The survey revealed that car loans still remain the least popular of the loans taken, behind the personal and housing loans. Read more on All Africa. Source: All Africa