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The Legal Maximum Interest Rate in Namibia

2 min read2026/27 tax year

Namibian law caps what lenders can charge. The limits are tied to the prime rate, so they move whenever the Bank of Namibia changes its repo rate.

Bank loans and other credit: 1.6 × prime

Under the Usury Act, a lender may charge at most 1.6 times the prime rate a year. General Notice 572 of 2018 applies the same cap to money lending, credit sales (such as car finance and credit cards) and leases. With prime at 10.25% since 17 June 2026, the maximum is 16.4% a year.

The Act defines the annual rate as the rate for each period multiplied by the number of periods in a year: a monthly rate of 1.25% is 15% a year. That's how lenders quote rates and how our loan repayment calculator works.

Fees count. The Usury Act treats charges for credit as finance charges, so a loan with a low rate and heavy fees can still be over the limit. Ask the lender for the total finance charges, not just the rate.

Big loans are different. The Usury Act doesn't apply where the amount borrowed is more than N$500,000, so large home loans and business loans have no statutory cap.

Microloans

The Microlending Act covers loans of up to N$100,000 repaid within 60 months, from a microlender registered with NAMFISA. General Notice 571 of 2018 sets their limits:

  • Repaid within five months (payday loans): total charges of at most 30% of the amount borrowed. On N$5,000, that's N$1,500.
  • Repaid over more than five months (term loans): at most twice the prime rate a year, 20.5% today.

If you fall behind, a microlender can charge default interest of at most 5% a month on the missed instalment, for no more than three months. A microlender can't charge a fee if the loan isn't concluded, and you have three days to change your mind after signing.

Paying early

You're entitled to pay off part or all of what you owe before it's due. For a full settlement the agreement may ask for up to 90 days' notice, and the lender must then recalculate the charges so you don't pay for time you haven't used. A microlender can't charge any penalty for settling early.

When the prime rate changes

The caps follow prime. The Bank of Namibia's Monetary Policy Committee meets about every two months; when it changes the repo rate, prime moves with it, and so do the maximums. We update the calculators after each decision.

Sources

This is general information, not tax, legal or financial advice.