List of Micro Lenders in Namibia
What is a Micro Lending Company?
Microlending, also known as microcredit, is a type of funding in which small loans are issued by individuals, rather than banks or other credit institutions. These loans can be used by entrepreneurs or business owners to get their idea off the ground or to expand their business with a little extra cash.
Overview of Micro Lenders in Namibia
ESSENTIAL TERMS AND CONDITIONS OF A LOAN AGREEMENT
A loan agreement is a document in which a lender sets out the terms and conditions under which it is prepared to make a loan available to a borrower. The main purpose of the loan agreement is to define what the parties involved are agreeing to, what responsibilities each party has and for how long the loan agreement will last.
Herewith an explanation of the essential terms and conditions of a loan agreement:
(i) A loan agreement must indicate the amount of the loan, the amount of interest and other charges added to the loan, which will make up the total debt. The loan agreement should stipulate how the amount should be repaid, i.e. once-off in one amount or in equal monthly instalments if the loan is serviced over an agreed number of months.
(ii) If the loan is paid off late, the loan is considered in default. In such circumstances a lender may require a borrower to sign a written Consent to Judgment. In this regard it is important for borrowers to know that it is illegal for such forms to be signed by a borrower at the time of entering into the loan agreement. It therefore follows that the signing of consent to judgment or consent to an emoluments attachment order prior to the borrower defaulting should stop it.
A Consent to Judgment form is signed by the borrower whereby the borrower agrees that he or she is indebted to the lender. The Court will then issue a judgment on the basis as agreed on by the lender and the borrower. Once the Court gives the Judgment, the borrower can sign a written consent to an Emoluments Attachment Order.
An Emoluments Attachment Order is a court order whereby the judgment creditor (lender) is able to attach part of the salary of the judgment debtor (borrower). Once an Emoluments Attachment Order has been granted, the employer of the judgment debtor is obliged to pay a certain portion of the judgment debtor’s salary to the judgment creditor.
(iii) Cooling-off period allows the borrower to terminate the loan agreement within a period of three
(3) Business days after the signing of the agreement and, if the loan amount has been paid out, simultaneously
to repay the loan amount received, to the lender. If the borrower terminates the loan agreement within the cooling-off period, the borrower is only obliged to repay the interest for the number of days that the loan was availed of and not interest for the full period of the loan agreement.
(iv) A microlender may not retain the Bank Card and Personal Identification Number (PIN) of a borrower in respect of a loan availed of.
(v) The lender must, before the conclusion of a micro loan agreement –
(a) Explain to the borrower in a language which the borrower understands (if necessary with the assistance of an interpreter) the essential terms of the loan agreement so as to ensure that the meaning and consequences
of the agreement are understood;
(b) Allow the borrower an opportunity to read the agreement, or have it read to the borrower in the case where the borrower is illiterate; and
(c) Provide the borrower with a copy of the signed loan agreement before or at the time of advancing the loan amount and, if applicable, a copy of the insurance contract pertaining to the loan transaction.
(vi) A borrower has the right to lodge a complaint with NAMFISA if a lender has treated him or her unfairly. A Complaint Intake Form should be completed by the borrower and submitted to NAMFISA for further investigation.
It is important for a borrower to honour the terms and conditions of the loan agreement. If a borrower is unable to service a loan on the basis as agreed on with the lender, the lender should be contacted immediately and new arrangements made for the repayment of the loan. It is important for the borrower not to remain quiet and hope for the debt to go away; it will not disappear and will only cause bigger problems and expensive legal costs to the borrower in future. Do contact the lender to explain your current difficulties and to make new
Micro Lending Firms in Namibia
Below are some list of micro lenders in Namibia;
Tulipwamwe Financial Services
Janeel Financial Services
Blue Financial Services
One Stop Cash
Namibia Financial Services
Monica K Cash Loan
Choice Financial Services
Native Geo Science
NR Financial Services
Loans ‘R’ Us
Kayec Forklift & Machine Operator
Flamingo Cash Loan
Kuomboka Bar & Guest House
Hakahana Cash Loan
Nam-Mic Financial Solutions
Cashplus Cash Loans
Erlin Financial Services
Dupwies Management Services
One Stop Financial Services
Rubicon Cash Loans
Quick Loans “Pika”
Lighthouse Financial Service
BGA Yove Cash Loan
Onepoko Cash Services
Sahala Cash Loan
Abba Financial Services
FCWL Financial Service
Top Notch Financial Services
Frequently Asked Questions (FAQs)
Here are questions related to micro lending in Namibia;
What are the benefits of microfinance?
Microfinance helps to provide financial services to those in remote locations where traditional financial institutions do not have operations. It also provides education and also can encourage entrepreneurial activity and business development in poverty-stricken areas.
What is a cash loan business?
Cash loan businesses operate in a similar way to banks. Banks however have a ceiling on the amount of interest that can be charged to consumers (stipulated by the Usury Act).
Are Micro Loans A Good Investment in Namibia?
Microloans aren’t for everyone but if you’re looking to diversify your investment portfolio, then it’s certainly worth exploring. The lending platforms are fairly easy to navigate and use. They’re also becoming more popular as more people flock online, looking for short-term loan opportunities.
What is a micro loans for small businesses?
Microloans are very small, short-term loans with a low interest rate, extended to self-employed individuals, new startups with very low capital requirements, or small businesses with only a few employees.
Does micro-lending work in Namibia?
Microlending programs are a type of peer-to-peer financing for small businesses and new startups. Microfinance is good for the lenders too. Although the risk of the borrower defaulting on the loan is relatively high, this is accounted for through higher interest rates, especially for high-risk borrowers.
How do I register a cash loan in Namibia?
The applicant will be required to complete the application form and submit the following documentation with the completed application form to NAMFISA: 5.1 A certified copy of Income Tax registration certificate of the Cash Loan Business as issued by the Ministry of Finance.
How do I start a micro lending business in Namibia?
Start a micro-lending company by following these 9 steps:
STEP 1: Plan your business.
STEP 2: Form a legal entity.
STEP 3: Register for taxes.
STEP 4: Open a business bank account & credit card.
STEP 5: Set up business accounting.
STEP 6: Obtain necessary permits and licenses.
STEP 7: Get business insurance.
Can you get rich from peer-to-peer lending?
There are some qualifications to use peer-to-peer lending such as being in a state that allows it, and having a certain level of verified income in different states. Usually, it’s $70,000 a year or more in income.
Is money lending a good business in Namibia?
While the role of moneylenders has reduced, they still continue to play a prominent role in the system. They continue to charge high rates of interest, which in turn leads to supernormal profits. Money lending hence has always been and will be one of the most lucrative businesses.