Some commercial banks, concerned that struggling working-class borrowers may not be able to repay motor vehicle and personal loans, have begun rejecting ‘problem’ loan applications to avoid overexposure.
The Bank of Botswana’s Household Indebtedness Survey Report 2025 indicates that commercial banks turned down loan applications worth P491 million in 2024, primarily for motor vehicle loans, followed by personal loans.
Overall, the household loan approval rate dropped sharply by 11.1 percentage points — from 90.5 percent in 2023 to 79.4 percent in 2024 — signalling tighter lending conditions across the banking sector.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased
