Borrowing from relatives or a rotating savings group in Congo-Kinshasa

Likelemba, the savings circle of Kinshasa markets

At Kinshasa's central market as in the offices of Gombe, likelemba members pay a regular contribution and take turns receiving the pot. The system works without interest but requires complete trust between members.

Solidarity mutuals and neighbourhood funds

Solidarity mutuals, often supported by NGOs in the Kivu provinces or Kasai, lend to their members out of collective savings. Interest and repayment rules are voted on at a general meeting and recorded in a ledger.

Family loans and the diaspora

A relative living in Brussels, Paris or Johannesburg often finances a plot, studies or a small business. These informal loans are sent through a transfer agency or by mobile money, and their repayment is rarely set down in writing.

An IOU certified at the commune

A dated document stating the names, amount, currency, repayment schedule and signatures of both parties protects lender and borrower alike. Having it certified before a notary or at the commune strengthens its value if a dispute arises.

Dollar or franc in a private loan

Specifying the currency avoids quarrels: a 500 dollar loan repaid in Congolese francs should state the conversion rate used. Without it, each side will invoke whichever rate suits them, the BCC rate or that of the street money changers.

Mobile money as proof of payment

Transfers via M-Pesa, Orange Money, Airtel Money or Africell Money leave a time-stamped record. Keeping the confirmation messages lets you prove every payment and every repayment, something that cash payments simply cannot do.

Interest between individuals and usury

Some neighbourhood lenders demand double the amount back within just a few weeks. These practices, common around markets and artisanal mining sites, can trap the borrower in a spiral of debt that is impossible to clear.

When to move to a licensed institution

When the need goes beyond the family circle, a COOPEC or a microfinance institution licensed by the BCC offers a clear contractual framework. The options are set out in the guide to microcredit in the DRC.

Fake lender scams on Facebook

Profiles posing as foreign investors or so-called financial mamas promise quick loans in Kinshasa. They demand application fees via mobile money and then vanish, a scam that should be reported to the police and to the operator.

People without a fixed income

Informal borrowing is often the only resource for people with no salary. More structured solutions, such as income-generating activities and support programmes, are described in the guide to the loan without a job in the DRC.

Savings groups across the Congo River

Rotating savings groups also exist on the other bank of the river, in Brazzaville, with practices close to those of Kinshasa. The page on peer-to-peer loans in Congo-Brazzaville shows the differences in legal framework and currency.

Settling a dispute amicably

When a debt goes unpaid, mediation by a neighbourhood chief, a pastor or a mutual's leader often comes before any legal action. The tribunal de paix remains competent for small claims when an amicable agreement fails.

Securing a private loan between individuals in the DRC

1. Agree clearly on the amount, currency, term and any interest before any money changes hands.
2. Draw up a dated and signed acknowledgement of debt, with copies of both parties' identity documents.
3. Have the document certified by a notary or at the communal office if the amount is large.
4. Send the funds by mobile money or bank transfer so that you keep proof of payment.
5. Record each repayment and keep the confirmation messages until the debt is fully settled.

Charges to expect in a private loan in the Congo

Useful items to formalise a private Congolese loan

• Identity document for each party, voter card or passport
• Signed and dated acknowledgement of debt
• Repayment schedule agreed in writing
• Screenshots or statements of mobile money transfers
• Named witnesses when the loan is made within a mutual
• Written rules of the savings group or likelemba

Risks of lending between individuals in the DRC

• Lending a large sum to a relative without anything in writing, then having no proof before the tribunal de paix.
• Joining a likelemba whose members do not know each other, and watching the organiser disappear with the pot.
• Paying advance fees to a so-called investor met on Facebook who promises a loan of several thousand dollars.
• Leaving the currency out of the agreement and later arguing over which exchange rate applies.
• Accepting an exorbitant monthly interest rate from a market lender to cover an emergency.

Lenders to contact

• Advans Banque Congo: Microfinance bank of the Advans network in the Democratic Republic of Congo, financing micro, small and medium enterprises, notably in Greater Katanga.
• Rawbank: Congolese commercial bank offering banking services to individuals and professionals, with dedicated credit lines for financing micro, small and medium enterprises.
• Rawbank: Major Congolese commercial bank allowing customers to submit an online credit application, for individuals as well as businesses and organisations.
• Trust Merchant Bank (TMB): Congolese commercial bank with a presence across many provinces, active in lending to individuals, small businesses and micro-entrepreneurs.

What people often ask about private loans in the DRC