MBABANE – The Eswatini Credit Providers Association (ECPA) has urged consumers to exercise caution when borrowing during the financially demanding month of January.
The association has warned that taking multiple loans or entering into agreements without fully understanding the terms can lead to long-term financial distress.
The Eswatini Credit Providers Association (ECPA) was established in 2018 as a voluntary industry body representing licensed non-bank credit providers and related organisations in Eswatini.
Current ECPA members include Amandla Financial Services, First Finance Company, Letshego Financial Services and Select Limited.
January is traditionally one of the most challenging months for many emaSwati households, as families face the pressure of school fees, uniforms, transport costs and other back-to-school expenses.
While access to credit can offer short-term relief, the association has stressed that borrowing must be done responsibly and within one’s financial capacity.
Speaking on behalf of the industry, ECPA Chairperson Thulani Dlamini said consumers should avoid overcommitting themselves to debt, especially through multiple loan arrangements that could become unmanageable over time.
“Borrowing beyond one’s means can lead to long-term financial distress that extends well beyond the January period,” Dlamini said. “We caution consumers against taking multiple loans or entering into agreements they do not fully understand.”
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‘Credit should not become a financial trap’
MBABANE – The ECPA has called on consumers to treat credit as a financial tool rather than a long-term burden.
According to the association, responsible borrowing starts with realistic budgeting, prioritising essential needs and understanding loan terms before signing any agreement.
“We encourage consumers to use credit as a financial tool, not a financial trap,” Dlamini said. “They should prioritise essential needs, budget realistically, verify that a lender is properly licensed and seek advice before committing to any loan agreement.” He also warned that unclear loan terms, hidden fees and unrealistic repayment schedules can quickly worsen a household’s financial position. “Understanding the full cost of a loan, including interest rates and fees, is critical. Consumers must never feel pressured into signing agreements they do not fully understand,” he said.
The association said its long-term goal is to support a stable and fair credit market that benefits both consumers and the broader economy. “Our collective objective as an industry is to promote responsible lending and borrowing, strengthen consumer protection and support the long-term financial well-being of households across Eswatini,” Dlamini said.
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