Namibians lean on overdrafts as money gets tight

More Namibians are turning to bank overdrafts to cover everyday expenses as rising living costs continue to strain household budgets.

The latest Private Sector Credit Extension (PSCE) report for June 2026 shows that household overdraft borrowing increased sharply, rising 12.5% year on year, compared with 5.8% in May.

An overdraft is a short-term borrowing facility provided by banks that allows customers to spend more than they have in their bank accounts, up to an agreed limit.

For many households, an overdraft provides temporary financial support when income is insufficient to cover monthly expenses such as food, transport, school costs and bills.