The German Development Bank (KfW) and NamPost, through its subsidiary PostFin, signed a N$406-million concessional financing agreement to disburse as micro-loans to micro- and small-sized enterprises and households in rural and remote areas.
This comes as PostFin’s funding agreement with KfW, to the value of N$342 million that was signed in 2019, came to an end in February 2021.
“Clients can apply at any of our PostFin Sales Agents across the country, located at various NamPost offices in their towns, they can also submit required documents online, to find out if they qualify. Please visit our website, to find out more about the required documents, and repayment terms,” said the Head of Business Development, Sales and Client Services at PostFin, Candace Goliath.
She further explained that clients wishing to take out a loan will need to provide proof of employment for 12 consecutive months and/or have a pay slip.
NamPost reported that the financial broker had issued 12,868 loans worth N$618 million in the 2021-2022 financial year, an increase from the 11,185 issued in the previous year.
According to PostFin’s Chief Executive Officer Patrick Gardiner, PostFin is a reputable micro-lender that offers services to permanently employed customers with Visa Smart Cards, government employees and pensioners who might experience difficulties securing micro-loans from formal institutions or other non-reputable parties in rural areas
He said PostFin has been a profitable contributor to NamPost’s revenue since 2014 with its retained earnings in 2022 at N$92,8 million, while its net impairment rate after recoveries deteriorated only to 2.4% from 2%, despite the strained economic conditions.
He further said PostFin’s profit before tax increased by 24% to N$24,8 million, while in 2021 it was N$20 million.
