Zimbabwe's main law on what lenders may charge is the Moneylending and Rates of Interest Act [Chapter 14:14]. It's an old Act, first passed in 1930 and amended many times since, and it still sets the ground rules for interest on loans.
The prescribed rate
The Act says no lender may ask for, demand or receive interest at a rate higher than "the prescribed rate of interest". Charging more is a criminal offence. The prescribed rate isn't written into the Act: it's set separately, by notice, and can change. We couldn't find the current figure published where we could verify it, so our loan repayment calculator doesn't check your rate against it. If you think a rate is too high, ask the lender which rate it relies on, or take legal advice.
Fees count as interest
The Act defines interest widely: any payment for a loan of money, "whether such consideration is in cash, in goods, in kind" or anything else. It includes discount, commission, expenses, inquiry fees, fines, bonuses and renewal charges. So a loan with a modest rate but heavy fees can still be charging more than it seems. When you compare loans, add the fees to the interest and compare the total cost, which the calculator shows.
Excess interest can't be recovered
A lender can't get a court judgment for, or otherwise recover, more than the money actually lent plus interest at no more than the prescribed rate, together with a few listed costs such as legal costs of recovering the debt. A borrower who has paid more than the lender could lawfully recover can claim the excess back within two years of paying it.
What the agreement must say
A written loan agreement (other than a mortgage bond) must state, separately and clearly, that it's for money lent, the amount actually paid to the borrower, and the rate of interest. If yours doesn't, ask for one that does before you sign.
When the Act doesn't apply
Some loans fall outside parts of the Act: for example, a loan from a lender outside Zimbabwe of money that's outside Zimbabwe, pawnbrokers' loans, and people or transactions exempted by regulations.
How the calculator works out your repayment
Lenders quote an annual rate. The calculator divides it by 12 for each month, charges interest on what you still owe, and finds the level payment that clears the loan by the end of the term. It works in US dollars or ZiG, and shows what paying extra or settling early would save.
Sources
This is general information, not tax, legal or financial advice.