Debt in Namibia

Before borrowing, compare income with essential spending and existing obligations. The available Namibian guidance uses a repayment limit of no more than 50% of discretionary income or one third of gross salary, whichever is lower, for microlending affordability decisions. Check the last three months of bank statements and payslips, disclose existing debit orders and loans, review your credit report, and use a registered or regulated provider. Microlenders must perform an affordability assessment, check a Credit Bureau and provide a written standard agreement with approved terms and visible charges. Under the Microlending Act 2018, a microlender may lend up to N$100,000. Repayment of principal debt and finance charges may run for up to 60 months. Finance charges are capped at 30% for repayment within five months or at twice the prevailing prime rate for a longer term. The principal debt may include the actual loan amount, N$5 stamp duty, an allowed ceded life-policy premium and the NAMFISA levy of about 1.03%. A microlender may charge default interest of up to 5% on the outstanding defaulted amount for no more than three months, according to the NAMFISA guidance. It must send notice before transferring the matter to a debt collector or lawyer. These microlending limits do not replace the terms and enforcement rules for every bank, instalment-sale, leasing or overdraft product. Banking institutions operate under the Banking Institutions Act 2023, and certain instalment-sale agreements fall under the Credit Agreements Act 1980. Credit Bureau information is governed by the Credit Bureau Regulations 2014. A person or company can request a credit report at least once in every 12-month period and challenge incorrect information. The provider must investigate within 20 days and remove data that cannot be substantiated. When repayment becomes difficult, contact the creditor in writing immediately and propose a realistic payment plan. Direct renegotiation between borrower and creditor is a practical option, but the researched national sources do not show a single government debt-consolidation or debt-review office. Do not treat the Credit Consumer Bill discussed in 2025 and 2026 consultations as current law. Complaints normally begin with the bank or microlender. The Bank of Namibia, or BoN, handles unresolved complaints involving regulated banking institutions, building societies and Credit Bureaus, primarily through mediation. Banks generally respond within 15 working days under the relevant guideline. NAMFISA handles microlending complaints submitted with dates, supporting documents and prior correspondence; complaints may be made in English or a local language. A complaint does not automatically stop collection or cancel the debt. A court judgment can establish a liquidated monetary debt and allow execution against property. Depending on the judgment, security and court procedure, enforcement can include a garnishee order, property execution or an emoluments attachment order, which directs an employer to deduct money for the judgment creditor. Automatic salary deductions do not arise merely because a borrower is in arrears. Magistrates’ Courts, the High Court, sheriffs and messengers have different roles in judgment and execution. For serious insolvency, the Ministry of Justice and Master of the High Court administer procedures including sequestration for qualifying individual or partnership estates, liquidation for companies and other estates, and judicial management for companies. Voluntary surrender is initiated by the debtor; compulsory sequestration is sought by a creditor. The court examines statutory compliance, actual insolvency, sufficient realisable property for costs and whether the procedure benefits creditors. Sequestration transfers control of the insolvent estate first to the Master and then to a trustee, and civil proceedings or execution are generally stayed subject to statutory exceptions. Rehabilitation is a later court process based on disclosure of assets, liabilities, earnings, proved claims and estate distributions; it does not create a universal automatic release from all debt after a fixed period. Legal Aid Directorate assistance for civil matters depends on the applicable income criteria. Master offices operate in Windhoek and Oshakati, while court jurisdiction depends on the district and court. Household credit reached about N$76.995 billion at the end of June 2025, around 29.9% of GDP, and corporate debt reached about N$192.429 billion in the second quarter of 2025, around 70.8% of GDP. These figures describe the scale of borrowing, not an individual entitlement or repayment result.