Eswatini bank opts for cattle as loan collateral
In many parts of the world, loan collaterals come in the form of landed properties or cash, but in this bank in Eswatini (formerly known as Swaziland), cattle are accepted as loan collateral.
Managing Director of Nedbank Eswatini, Fikile Nkosi announced on October 28, 2023, the decision of the bank during a community engagement programme known as the “People’s Parliament”.
The cattle, according to Swaziland News reports, will be first assessed to sanction their qualification to be placed as collateral.
“We now accept cattle as collateral but, we first conduct experts to assess the value of the cattle and ascertain if they qualify to be placed as a collateral for the loan,” said Fikile Nkosi.
Collaterals are properties (such as securities) pledged by a borrower to protect the interests of the lender.
The Kingdom of Eswatini is a small, landlocked country covering a total area of 17,364 km² and is located in the southern part of Africa bordered by the Republic of Mozambique to the east and the rest by the Republic of South Africa.
Most households derive their income from agricultural activities and livestock rearing plays an important role in the lives of the country’s populace.
