15 Feb 2019 08:50am
WINDHOEK, 15 FEB (NAMPA) Namibian consumers owed micro-lending institutions close to N.dollars 6 billion at the end of the second quarter of 2018, the Namibia Financial Institutions Supervisory Authority (Namfisa) said in its second quarterly statistical report for 2018.
It said during the second quarter of 2018, the value of the loan book grew by 20,9 per cent and 22,6 per cent on a quarterly and yearly basis to N.dollars 5.9 billion, respectively. The growth originated from household borrower transactions of both term-loan and payday loan lenders.
With regard to the cumulative number of household borrowers that benefited from the micro-lending transactions, the number grew by 15,7 per cent to 333 690, quarter-on-quarter and 10,1 per cent, year-on-year.
A payday loan is a type of short-term borrowing at a higher interest rate which is payable on the next pay date, while a term-loan extends for a period longer than a month and attracts lower interest rates.
The increase in disbursed loans was attributed mainly to the transactions of term-loan lenders as payday loan lender disbursements declined. In this regard, the quarterly and yearly growth in the amount of the new loans disbursed countrywide rose by 12,8 per cent and 6,2 per cent, respectively.
The quarterly and yearly growth in the value of new loans can be attributed to the transaction value of term-loan lenders and term-loan borrowers that registered a positive growth of 17,6 per cent and 11,2 per cent, respectively.
On the contrary, the value of transactions between payday loan lenders and payday loan borrowers decreased on quarterly and yearly basis, at the end of the second quarter of 2018.
The number of the new loans issued declined both on a quarterly and yearly basis at the end of the second quarter of 2018, driven by both payday and term lenders. In this regard, the number of new loans issued contracted by 2,5 per cent, quarter-on-quarter, and 15,3 per cent, year-on-year to 161 397.
During the period under review, the average amount of loans extended increased both on a quarterly and annual basis at the end of the second quarter of 2018. The average amount of the new loan extended by term lenders and payday lenders stood at N.dollars 25 339 and N.dollars 1 657, respectively.