Namibians borrow less but loan sizes rise

Namibians are taking fewer loans from microlenders, but the amount borrowed by each individual is increasing.

According to the latest quarterly report from the Namibia Financial Institutions Supervisory Authority (Namfisa), the average term loan increased to N$25 620 during the first quarter of 2026, while the average payday loan rose to N$4 030.

Payday loans are loans that are paid off in one month, while term loans are usually paid over a specified time.

In the first three months of the year, Namibians borrowed N$927.8 million.

LOAN INDUSTRY FEELS PRESSURE

The report shows that the country’s microlending loan book decreased by 3% between January and March, falling to N$7.3 billion.

The decline was mainly linked to a reduction in term loans, which are usually larger loans.