MICRO-LENDING
This is a fast-growing sector in Namibia and so it deserves an in-depth look. Micro-lending refers to loans under N$50 000 which must be repaid over a maximum period of 60 months to the ‘micro-lender’, usually in instalments. Micro-lenders are often unkindly referred to as ‘loan sharks’, but it would be unfair to say the institutions are always in the wrong when it comes to misunderstandings with their customers. For instance, while it’s true that micro-lenders’ interest rates are higher than bank rates, this is because they provide funds over a shorter period, and at greater risk of ‘bad debts’ if their customers fail to pay.
ALWAYS remember to read the contract before signing it and also to note that you can negotiate on the interest charges and NEVER deal with unregistered entities / individuals. Contact NAMFISA to confirm the registration status of an entity / individual if you are not sure.
GOT A COMPLAINT? WE'RE LISTENING! Click here
<< Go Back to Consumer Education
Contact us
154 Independence Avenue, Sanlam Centre, 1th Floor, Windhoek, Namibia
P.O.Box 21250 Windhoek, Namibia
Tel: + 264 61 290 5000
Fax: + 264 61 290 5194
Disclaimer
The content of this World Wide Web site is intended for general information only and is not intended to serve as financial or other advice. While every precaution is taken to ensure the accuracy of information, NAMFISA shall not be liable to any person for inaccurate information or opinions contained herein.