Help for debt-ridden civil servants

12 September 2018 | Banking

Staff Reporter - NedLoans has introduced a product enhancement for government employees by increasing the maximum loan to N$200 000 per client, subject to affordability.

The primary purpose of the product enhancement is to respond in a meaningful way to the national crisis of multiple indebtedness attributed to a lack of financial wellness skills," Nedbank Namibia’s head of NedLoans: Erastus Haihambo, said in a statement.

According to the latest figures released by the Bank of Namibia (BoN), the total bank debt of consumers at the end of July was nearly N$55.1 billion – an increase of some N$3.47 billion or 6.7% compared to the same month in 2017.

As a significant rise in the level of household debt coincides historically with many severe economic crises, Nedbank Namibia said in its statement. The bank aims to assist civil servants to better manage their debt through debt consolidation, it said.

"Although a better deal is achieved when multiple debts are settled so that the client remains with one installment, it is equally important that we awaken people to the potential risks and consequences irresponsible borrowing may hold," said Haihambo.

“This is exactly what we assist our clients with at NedLoans and why the enhancement to the current product was developed. When times are tough, clients start seeking out ‘easy’ loan options as they need immediate relief of credit card debt and other willful consumption.”

Housing

In addition, NedLoans decided to become actively involved in delivering a village home solution to government employees living in unproclaimed areas who currently are not benefitting from the government housing scheme.

Consumer activist Rob Parker says this could be a good product for civil servants in far-flung rural areas as it is reaching out “to a segment of the populations who were previously without access to credit”.

“These products could also help consumers build creditworthiness,” Praker said.

He, however, urged clients to check the terms and conditions and make sure they understand it before signing the agreement.

The publisher of Consumer News Namibia, Willem Gariseb, said Nedbank Namibia's offer is a step in the right direction.

"It's about time the private sector showed some initiative. Decentralisation of vital services to the majority of Namibians can only be effective if the civil service can attract professionals to rural areas. This product could help those professionals to build proper houses in unproclaimed areas," said Gariseb.

Haihambo said there are civil servants who could not qualify for urban housing schemes and who, upon retirement, will have no choice but to return to their respective communal areas. “This is yet another reason why financial planning is so important.”

Similar News

 

FirstRand Foundation supports mentorship and business skills training

5 days ago - 19 October 2018 | Banking

FNB Business division’s new business development manager Alexzander Shikemeni on behalf of the foundation emphasised that SMEs in Namibia form the backbone of the economy,...

FNB Namibia supports the manufacturing association

6 days ago - 18 October 2018 | Banking

FNB Namibia’s business division has reiterated its support towards the Namibia Manufacturers Association (NMA) Manufacturer of the Year Awards ceremony, which will take place on...

Kamushinda accused of dirty tricks

1 week ago - 12 October 2018 | Banking

The Supreme Court of Namibia on Tuesday reserved judgement in a matter in which Metropolitan Bank of Zimbabwe and World Eagle Investment are trying to...

Bank Windhoek, Adonai Trust upskill Walvis Bay inmates

1 week ago - 12 October 2018 | Banking

A total of 86 inmates from the Walvis Bay Correctional Facility took part in a two-week Money Map training session hosted by Bank Windhoek and...

SME Bank liquidation appealed

1 week ago - 11 October 2018 | Banking

CATHERINE SASMAN The Zimbabwean Metropolitan Bank and World Eagle Properties have appealed to the Supreme Court to overturn the High...

Serving the people, the executive way

2 weeks ago - 09 October 2018 | Banking

Members of the executive leadership team of Bank Windhoek and its holding company, Capricorn Group, joined the rest of the world in paying homage to...

Bank Windhoek appoints national operations manager

2 weeks ago - 05 October 2018 | Banking

Bank Windhoek is pleased to announce the appointment of David Nell as its new National Operations Manager, effective 1 September 2018. David takes over from...

Lending a hand with serviced land

3 weeks ago - 28 September 2018 | Banking

In order to help municipalities and town councils speed up the servicing of land, FNB Namibia has decided to grant local authorities loans that they...

Bank Windhoek finances 5, 78 MW Solar Plant

3 weeks ago - 28 September 2018 | Banking

Bank Windhoek, in conjunction with Enertronica Group, recently financed the construction of the Trekkopje Solar Project, in the Erongo region as part of the development...

Entrepreneurs: When the going gets tough, the tough gets...

4 weeks ago - 25 September 2018 | Banking

Entrepreneurs are people are skilled at adapting and being resilient in uncertain situations and come up with new, different and innovative ideas.“The challenges currently being...

Latest News

Supreme Court upholds SME Bank...

6 hours ago | Justice

The Supreme Court yesterday dismissed an appeal by Metropolitan Bank of Zimbabwe and World Eagle Properties against a High Court order for the final liquidation...

Progress on revenue agency

6 hours ago | Government

The ministry of finance is positive that the new Namibia Revenue Agency (Namra) will become operational at the beginning of the next fiscal year. The...

City intrigue a big yawn

6 hours ago | Columns

The City of Windhoek, which has not exactly covered itself in glory when it comes to handling its finances and delivering services to residents, including...

Young businessman a vital cog...

6 hours ago | Business

Andreas Armas of Andreas Armas Stevedoring CC and Misty Bay CC says he runs successful businesses in this tough sector.“I started my stevedoring company in...

Africa news in briefs

6 hours ago | Economics

Author of critical book on Egypt's economy arrestedEgyptian police on Sunday arrested the author of a book about Egypt’s economy on charges of publishing false...

GIPF beneficiaries wait in abject...

6 hours ago | Government

An Omusati family from Ombwata village in Okahao are living in abject poverty, despite being entitled to a Government Institutions Pension Fund (GIPF) death benefit...

Procurement remains too secretive

6 hours ago | Government

The integrity of Namibia's public procurement system is undercut by a widespread lack of transparency and accountability, leading to serious concerns that state tenders remain...

Katima in refuse collection bind

6 hours ago | Government

The Katima Mulilo town council will no longer be able to provide its residents with refuse removal services, owing to the re-advertisement of a tender.Acting...

Earning your bonus

6 hours ago | Business

JAN COETZEEThe end of another year is rapidly approaching and all thoughts are on December and the festive season, which is the season of giving....

Load More