The Namibia Financial Institutions Supervisory Authority (Namfisa) has warned the public to only use registered microlenders when seeking short-term loans and related financial services.

Namfisa said that using unregistered microlenders puts consumers at risk of unlawful practices, unfair and excessive charges, and loss of legal protections. Under the Microlending Act of Namibia, all microlenders must be registered and supervised to operate lawfully. The law is designed to protect consumers by ensuring fairness, transparency and accountability in the microlending sector.  Registered microlenders are required to clearly explain interest rates, fees, and repayment terms before a loan is given. 

They must also charge interest and fees within legal limits, treat customers fairly, and avoid abusive or misleading practices. 

In addition, registered lenders are not allowed to keep personal documents, bank cards, or PINs as security, and must provide proper loan documents to borrowers. Namfisa said that any lender that does not follow these rules is operating illegally and exposes consumers to serious financial risk.

Namfisa spokesperson Victoria Raimond urged consumers to be cautious when borrowing money.  “We encourage all Namibians to check whether a microlender is registered before using their services. Borrowing from unregistered lenders can result in high costs and limited legal protection,” she said.

She added that the Microlending Act exists to protect consumers and promote responsible lending. The public is advised to check the Namfisa website for an updated list of registered microlenders. Namfisa called on consumers to stay informed and vigilant to avoid financial exploitation, noting that responsible borrowing starts with choosing a registered and regulated microlender. -newsroom@nepc.com.na