Entrépo microlender freezes loans after government payroll change
Microlender Entrépo, which had a payroll deduction arrangement for civil servants, is weighing its future after the government ended the deductions on which its business mainly depended. This comes as a result of a decision the Ministry of Finance made last year to end the government’s payroll deduction management system (PDMS) in November. The company, […] The post Entrépo microlender freezes loans after government payroll change appeared first on The Namibian .
Microlender Entrépo, which had a payroll deduction arrangement for civil servants, is weighing its future after the government ended the deductions on which its business mainly depended.
This comes as a result of a decision the Ministry of Finance made last year to end the government’s payroll deduction management system (PDMS) in November.
The company, 55.5% owned by Capricorn Group, extends loans to government employees only.
As at the first quarter of the year, Entrépo was the second-largest term lender in the country, accounting for 28% of the N$7.3-billion sector.
Entrépo Finance has confirmed it is no longer granting new loans, while its majority shareholder, Capricorn Group, says the company is under pressure to adapt to a new operating environment.
The developments have fuelled speculation that the microlender could eventually close, although Capricorn insists the business remains profitable and sustainable.
A notice on Entrépo’s website states: “We would like to inform our valued customers that Entrépo Finance is no longer granting new loans, but we are still here to support you. The agreements with all existing customers stay unchanged.” LENDING FROZEN, STAFFING CUT
