• Borrowers say mashonisas charge extreme interest, forcing people to borrow again just to repay old loans.

• Many hand over bank cards or Sassa cards as security, leaving them with no protection and constant fear.

January is one of the hardest months of the year for many South Africans.

School fees are due, petrol prices are high, and most households are still recovering from December spending. For many families, there is simply no money left.

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That is when mashonisas step in.

Mashonisas are informal township loan sharks who offer instant cash with no paperwork. Borrowers say the money comes fast, but the cost is crushing.

"You borrow R200 and at the end of the month you must pay back R300," said one borrower. "If you can't pay, the debt just grows."

Many borrowers say they end up taking a second loan just to repay the first one, pulling them deeper into debt.

Mashonisas often demand bank cards, ID books or Sassa cards as security. If payments are missed, borrowers say they are threatened, harassed or publicly shamed.

Most mashonisas are not registered lenders. That means the loans are illegal, but borrowers say that also means they have no protection.

"If something goes wrong, you can't report them," one borrower said. "You are scared."

The National Credit Regulator says all lenders must be registered and must charge fair interest with written agreements. But in townships, borrowers say those rules are ignored.

January is the peak season for mashonisas.

Some residents say people are even becoming mashonisas themselves, using small amounts of money to start lending in their communities. But lending without registration is illegal and can lead to arrest.

For borrowers, the risk is even higher.

Missing a payment can mean losing access to your money completely. Handing over a bank card can leave families without food or transport.