How the repayment is worked out
Lenders quote an annual rate and charge it monthly, so the monthly rate is the annual rate divided by 12; the Usury Act defines the annual rate the same way. Each month’s interest is charged on what you still owe, and the level repayment clears the loan, interest included, by the end of the term.
The legal maximum
Under the Usury Act, a bank or other lender may charge at most 1.6 times the prime rate a year: 16.4% today. Fees count as finance charges too. Loans above N$500,000 fall outside the Act. A microloan, up to N$100,000 repaid within 60 months, has its own limits: at most 30% of the amount borrowed in total if repaid within five months, otherwise twice the prime rate a year, 20.5% today.
Paying early
You can pay extra at any time. To settle in full, the agreement may ask for up to 90 days’ notice, and the lender must then recalculate the charges. A microlender can’t charge a penalty for settling early.
We don’t offer credit, arrange loans or recommend lenders. If you’re struggling with repayments, talk to your lender early.