{"id":1183,"date":"2017-03-28T11:13:58","date_gmt":"2017-03-28T09:13:58","guid":{"rendered":"https:\/\/www.namfisa.com.na\/educates\/?p=1183"},"modified":"2025-07-19T11:08:30","modified_gmt":"2025-07-19T09:08:30","slug":"micro-loans","status":"publish","type":"post","link":"https:\/\/www.namfisa.com.na\/educates\/micro-loans\/","title":{"rendered":"Micro-Loans"},"content":{"rendered":"\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

What is a Roll-Over Loan?<\/h3><\/span><\/div>
A roll-over loan is a practice which gives the borrower the option to renew a loan on the date that it becomes due, without actually repaying the loan, i.e. a new loan agreement is begun, while the previous one remains active and unpaid.\nThis practice results in the original capital amount, or an increased capital amount, being rolled over from one month to the next, and at the same time earning interest at the annual rate instead of the defaulting loan earning 5 percent maximum interest per month as prescribed by NAMFISA guidelines.\nThus a new agreement is entered into for a loan that is effectively in default.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

What is NAMFISA\u2019s take on roll-over loans?<\/h3><\/span><\/div>
NAMFISA allows limited numbers of loan rollovers, however:\nNAMFISA discourages the perpetual roll-over of loans;\n
\u2022 Loan roll-overs are limited to a maximum of four months;\n
\u2022 After the fourth roll-over, the loan agreement should be ended and the lender and borrower should negotiate the repayment terms of the balance outstanding at that date with no further interest being charged.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Conclusion<\/h3><\/span><\/div>
<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
How Does a Roll-Over Loan Work?<\/h5><\/div>
<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
  • <\/span>The borrower\u2019s loan is \u201crolled over\u201d from one month to the next.<\/li>
  • <\/span>Interest is charged at an annual rate, rather than the maximum monthly rate of 5% as per NAMFISA guidelines.<\/li>
  • <\/span>The loan essentially remains unpaid and in default, with the debt continuing to grow.<\/li><\/ul><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
    \n\t\t\t\t
    \n\t\t\t\t\t
    <\/h5><\/div>
    While NAMFISA permits roll-over loans, there are strict guidelines:<\/strong>

    \n\n- Limited to 4 months: A loan can only be rolled over for a maximum of 4 months.\n
    \n- After the fourth roll-over: The loan agreement must be terminated. \n

    \n\nThe lender and borrower must negotiate repayment terms without any additional interest.<\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
    \n\t\t\t\t
    \n\t\t\t\t\t
    <\/h5><\/div>
    Roll-over loans are intended to provide short-term relief, but continuous roll-overs can lead to unmanageable debt for borrowers. Understanding these guidelines is crucial to ensure both lenders and borrowers are on the same page.<\/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":"

    What is a Roll-Over Loan? A roll-over loan is a practice which gives the borrower the option to renew a loan on the date that it becomes due, without actually<\/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-1183","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\/1183","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=1183"}],"version-history":[{"count":7,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1183\/revisions"}],"predecessor-version":[{"id":35669,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/posts\/1183\/revisions\/35669"}],"wp:attachment":[{"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/media?parent=1183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/categories?post=1183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.namfisa.com.na\/educates\/wp-json\/wp\/v2\/tags?post=1183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}