Namibians took out N$1.1 billion in loans from microlenders during the second quarter of 2026, representing a 15.1% increase from the previous quarter as both term and payday lending increased.
According to the Namibia Financial Institutions Supervisory Authority’s (NAMFISA) Statistical Bulletin for the second quarter of 2026, the increase in lending was accompanied by higher average loan values across both categories.
The average term loan increased 13.1% quarter-on-quarter to N$28,973, while the average payday loan rose 7.4% to N$4,329.
Despite the quarterly increase, total loan disbursements were 29.4% lower than in the corresponding quarter of 2025, largely due to a 63.5% year-on-year decline in term-loan disbursements.
Payday lending moved in the opposite direction, with disbursements increasing 20.7% year-on-year.
Payday lenders accounted for 69% of the N$1.1 billion disbursed during the quarter, compared with 31% for term lenders.
“The quarterly increase in disbursements was supported by both lending categories. Term-lending disbursements increased 24.3% to N$328.0 million, while payday-lending disbursements rose 11.5% to N$739.9 million,” NAMFISA said.
The microlending industry issued 182,224 new loans during the quarter, up 4.1% from the previous quarter and 1.5% from the corresponding period of 2025.
Payday lenders accounted for 170,902, or about 94%, of all new loans issued, while term lenders accounted for 11,322.
The number of household borrowers increased marginally by 0.04% quarter-on-quarter to 274,845, but was 13.9% higher than a year earlier.
NAMFISA said the quarterly increase was supported by a 1.3% rise in payday borrowers, while the number of term-loan borrowers declined by 0.9%. Term borrowers accounted for 57% of total clients and payday borrowers 43%.
Meanwhile, the industry’s outstanding loan book expanded 27.0% quarter-on-quarter to N$9.3 billion and was 19.3% higher year-on-year.
Term lending remained the largest component, with its outstanding loan book increasing 28.7% quarter-on-quarter and 18.9% year-on-year to N$8.6 billion, accounting for 92.3% of the total.
The payday loan book increased 9.1% quarter-on-quarter and 25.6% year-on-year to N$716.8 million.
The payday lending market remained highly concentrated, with Express Credit Cash Advance accounting for about 67.8% of the outstanding payday loan book, followed by Janeel Financial Services at 6.1% and Bellatrix SME Finance at 3.7%.
In the term-lending market, Letshego Micro Financial Services accounted for 28.7% of the loan book, followed by Entrepo Finance at 26.7% and Old Mutual Finance at 22.7%.
