DURBAN - With widespread allegations of discrimination against black people who seek financial assistance from banks, Daily News journalists Thobani Dlamini and Nokuthula Mabuza approached small, medium and micro-enterprise (SMME) owners as well as the general public to engage them on this issue.
MKHUSELI Dumakude, 31, Umlazi: “SMMEs do not have access to business loans due to the distrust of black people and communities from banks. Despite the evidence of normal trading in our business, which is similar to any other start-ups, we are unable to get loans and advances. It is disappointingly entrenched in the banking sector to sideline black business owners, an experience we have here in our enterprise.”
NOBUHLE Shongwe, 29, Bluff: “I think I was doing matric when my mother was trying to get a home loan for a house in Inanda. The banks kept sending her back and forth for documents. When she eventually got everything they would say she did not qualify. When she checked her credit score online it showed that she did qualify for a loan.
“This troubled her for some time until a lady who worked at the bank asked my mom why she wanted to buy a house in a place that was known for being dangerous. She suggested that maybe she could change to other places. My mother could not afford that but she took one house and guess what, she was also declined. I’ve always known that somehow the banks were not made for people like us who needed help.”
FA MKHIZE, 45, Umbumbulu: “I once applied for a business loan and it was not approved. They required proof of residence for my business, upon providing it they instantly declined my application. The bank predominantly assumed that I could not be able to afford to pay back the money. They questioned the area and said my business was not reliable and not viable. They assume that rural communities like Umbumbulu have no financial muscle to support such businesses. It is shocking because we have other races owning similar businesses in the area and I bet they are funded.”
NOLWAZI Mtshali, 37, of Perfect P’s in Umlazi: “Banks are not open to businesses that start from scratch, which puts black people at risk the most. Capital is important in the day-to-day running of a small business, it pays the bills, staff, and cover expenses, especially, with the unpredictability of Covid-19 lockdowns.
“So, when banks discriminate, our businesses fail. Banks should thrive at not discriminating but look to benefit all individuals in society as it will contribute to the broader economic outcome of the city, province and the country.”
Daily News