{"id":1090,"date":"2017-03-28T09:31:12","date_gmt":"2017-03-28T07:31:12","guid":{"rendered":"https:\/\/www.namfisa.com.na\/educates\/?p=1090"},"modified":"2025-07-21T18:38:43","modified_gmt":"2025-07-21T16:38:43","slug":"microlending-interest-rates","status":"publish","type":"post","link":"https:\/\/www.namfisa.com.na\/educates\/microlending-interest-rates\/","title":{"rendered":"Microlending Interest Rates"},"content":{"rendered":"\t\t
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Definition of Moneylender and Microlender<\/h3><\/span><\/div>
In terms of the Usury Act, 1968 (Act No. 73 of 1968) a moneylender is defined as any person who is granting or has granted a loan or a sum of money to a prospective borrower in terms of a money lending transaction. The Minister issued Exemption Notice No. 189 of 25 August 2004 under section 15A of the Usury Act, 1968 defining a microlender as a person registered with the Registrar and whose business includes the carrying on of micro loan transactions.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Definition of Micro Loan Transaction<\/h3><\/span><\/div>
A micro loan transaction is defined as a money lending transaction in respect of which the loan amount:\n
\nDoes not exceed N$50,000;
\n1. Does not exceed N$50,000;
\n2. Together with the finance charges, which is owed by the borrower, must be paid to the microlender, whether in installments or otherwise, within a period of 60 months after the date on which the sum of money has been advanced to the borrower; and
\n3. Is not paid in terms of a credit card scheme or withdrawn from a cheque account with a bank so as to leave that cheque account with a debit balance.\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Regulations for Moneylenders<\/h3><\/span><\/div>
Moneylenders, except microlenders, are not obliged to register with NAMFISA. In terms of Exemption Notice No. 196 of 25 August 2004, moneylenders are only allowed to charge maximum annual finance charges at an average prime rate times 1.6. It is currently 9.25% times 1.6 equaling 14.8% per annum.\n
\n\nMoneylenders are also not allowed to keep the Bank Cards\/PINs of borrowers.\n
\n\nWhere borrowers find that moneylenders charge in excess of the maximum allowable finance charge rate, they should report this anomaly immediately to NAMFISA.\n
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Contact Information for NAMFISA<\/h3><\/span><\/div>
For clarity or more information, kindly contact the Microlending and Credit Agreements Department\n
\nat: (061) 290 5000 (main), Ms. Lucrecia Lombardt at (061) 290 5120 or e-mail: llombardt@namfisa.com.na, or Mr. Alfred van Rooi at (061) 290 5127 or e-mail: avanrooi@namfisa.com.na<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Example Calculations<\/h3><\/span><\/div>
If a borrower borrows N$1,000 in respect of a 30-day loan, the annual finance charge will be calculated as follows:
Annual finance charge = (Loan amount x (average prime rate x 1.6)) \u00f7 12
= (N$1,000 x (9.25% x 1.6)) \u00f7 12
= (N$1,000 x 14.8%) \u00f7 12
= N$148 \u00f7 12
= N$12.33
Total amount payable in respect of a 30-day loan = Loan amount + annual finance charge = N$1,000 + N$12.33
= N$1,012.33 <\/blockquote>
If a borrower borrows N$1,000 in respect of a 6-month loan, the annual finance charge will be calculated as follows:
Annual finance charge = Loan amount x (average prime rate x 1.6) x (6 \u00f7 12)
= N$1,000 x (9.25% x 1.6 x (6 \u00f7 12))
= N$1,000 x 14.8% x (6 \u00f7 12)
= N$148 x 0.5
= N$74
Total amount payable in respect of a 6-month loan = Loan amount + annual finance charge = N$1,000 + N$78
= N$1,078 <\/blockquote>
If a borrower borrows N$1,000 in respect of a 12-month loan, the annual finance charge will be calculated as follows:
Annual finance charge = Loan amount x (average prime rate x 1.6)
= N$1,000 x (9.25% x 1.6)
= N$1,000 x 14.8%
= N$148
Total amount payable in respect of a 12-month loan = Loan amount + annual finance charge
= N$1,000 + N$148
= N$1,148 <\/blockquote>\n<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Definition of Moneylender and Microlender In terms of the Usury Act, 1968 (Act No. 73 of 1968) a moneylender is defined as any person who is granting or has granted<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"footnotes":""},"categories":[430],"tags":[],"class_list":["post-1090","post","type-post","status-publish","format-standard","hentry","category-micro-lending-credit-agreement"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/comments?post=1090"}],"version-history":[{"count":4,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1090\/revisions"}],"predecessor-version":[{"id":36090,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1090\/revisions\/36090"}],"wp:attachment":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media?parent=1090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/categories?post=1090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/tags?post=1090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}