Staff Writer
The Namibia Financial Institutions Supervisory Authority (Namfisa) has cautioned the public to use only registered microlenders when accessing short-term credit and related financial services.
Namfisa said dealing with unregistered microlenders exposes consumers to unlawful practices, excessive charges and the loss of legal protection.
Under Namibia’s Microlending Act, all microlenders must be registered and supervised to operate legally.
The Act aims to protect consumers by regulating lending practices and promoting transparency, fairness, and accountability in the microlending sector.
Namfisa said registered microlenders must be formally authorised and are required to clearly disclose interest rates, fees, and repayment terms before a loan is issued.
They may only charge interest and fees within limits set by law and must treat consumers fairly, without abusive or deceptive practices.
The authority said registered microlenders are not allowed to keep personal documents, bank cards or PINs as security. They must also provide proper loan documentation.
Any lender operating outside these rules acts unlawfully and puts consumers at risk.
Consumers have been urged to verify the registration status of a microlender before signing any agreement.
This can be done through the Namfisa website, which carries an updated list of registered microlenders.
Namfisa advised the public not to borrow from individuals or entities that cannot prove registration. It also warned against lenders who pressure borrowers into quick decisions or refuse to provide written agreements.
Suspected illegal microlending activities should be reported to the relevant authorities.
Namfisa spokesperson Victoria Raimond stressed the need for consumer vigilance and encouraged Namibians to always verify a lender’s registration status.
She said borrowing from unregistered microlenders can lead to high costs and limited legal recourse, adding that the Microlending Act exists to protect consumers and promote responsible lending.
Members of the public who have been affected by the conduct of a microlender, or who suspect unlawful lending practices, are encouraged to lodge complaints with Namfisa.
Complaints can be made in person, via the toll-free line at 0800 290 500, by email at complaints@namfisa.com.na, through the Namfisa website or by mail.
Namfisa said it investigates all complaints and takes regulatory action where necessary to enforce compliance with the law.
