Shopkeeper credit hand consumers lifeline amid costly loans

Thirty percent of consumers bought goods or services on credit from local shop arrangements.

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Credit advanced by shopkeepers in the form of goods and services has become a key lifeline for consumers amid a slowdown in loans from formal channels such as banks and digital lenders due to high interest rates and defaults.

Findings from the ICEA Lion Asset Management (ILAM) Consumer Spending Index shows a growth in the prominence of local shop arrangements as a source of credit in the three months to September compared to the previous quarter.

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Note: The results are not exact but very close to the actual.