Govt tackles loan sharks

EXORBITANT fees charged by cash loans and other microlenders could be a thing of the past if a new bill tabled in parliament this week by finance minister Calle Schlettwein becomes law.

He tabled the Usury Amendment Bill on Tuesday in the National Assembly. Schlettwein said the Usury Act – which regulates how much financial institutions charge customers who borrow money – did not cover fees charged by microlenders. The Usury Act defines microlending as a loan under N$50 000, which should be repaid over a maximum period of 60 months.Schlettwein said the proposed changes are aimed at setting limits on loan interest charges.Namfisa figures show that cash loan operators in Namibia issued loans worth about N$850 million last year.