'Banks overpricing individual loans'

Banks are charging punitive interest rates on individual borrowers on assumption that they take the loans for consumption when some require funding to support small enterprises, recent research findings noted.

According to the Zimbabwe Economic Policy Analysis and Research Unit economic barometer volume 16, interest rates for individuals are higher than those for corporate borrowers.

However, individuals continue to borrow more than a number of productive sectors of the economy, partly because banks prefer extending credit to individuals.