Ithala Development Finance Corporation was established to provide loans to struggling small businesses and entrepreneurs in KwaZulu-Natal, reported the Sunday Times.
It confirmed it had drawn up court papers to recoup the money from Zuma, the paper reported.
He apparently defaulted on two loans, one worth R4.4-million and another of R512 000.
"He is struggling to pay his debts just like any other South African," Zuma's lawyer, Siphiwe Mncwango, was quoted as saying by the paper. - Sapa.