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

 

BoN, Bundesbank to further bolster ties

7 hours ago | Banking

The Bank of Namibia (BoN) and the central bank of Germany, the Deutsche Bundesbank, want to strengthen existing ties, particularly in the areas of combating...

Surge in use of digital banking

1 week ago - 11 February 2019 | Banking

FNB Namibia says customers are increasingly embracing digital banking channels in order to bank in a convenient and affordable manner.The highest number of customers migrated...

Banks sued for rand manipulation

1 week ago - 07 February 2019 | Banking

The Competition Commission of South Africa says Standard Chartered Bank has pleaded guilty to currency manipulation, including of the South African rand, citing a consent...

Peace of mind

2 weeks ago - 01 February 2019 | Banking

Bank Windhoek, Auto Armor Namibia and Amber Connect have forged an amazing partnership that gives customers peace of mind on the road.Bank Windhoek, Auto Armor...

LongRich model under investigation

1 month - 18 January 2019 | Banking

The Bank of Namibia is assessing the activities of LongRich to establish whether it is legitimate or a pyramid scheme, BoN spokesman Kazembire Zemburuka has...

IT glitch leaves bank customers stranded

1 month - 09 January 2019 | Banking

OGONE TLHAGEAn IT glitch left hundreds of FNB Namibia customers at Oshikango stranded yesterday.The customers, who were queuing outside the bank from 08h30, thought that...

Lower banking fees for 2019

1 month - 21 December 2018 | Banking

Pensioners will no longer pay monthly management fees for their accounts with Standard Bank Namibia as from the beginning of 2019.The bank said in a...

Cheques phased out by Bank Windhoek

2 months ago - 14 December 2018 | Banking

Bank Windhoek’s final cut-off date for processing of cheques as a means of payment will be 30 June 2019. “This is to meet the Namibian...

SME holiday preparation tips

2 months ago - 30 November 2018 | Banking

As the festive season approaches, some businesses will close for the holidays. This time of year allows businesses to reflect on their achievements and the...

Easy and accessible banking

2 months ago - 30 November 2018 | Banking

From humble beginnings in 1907 with only 12 employees in Lüderitz, the FirstRand Namibia Group today employs more than 2 300 people.FirstRand Namibia Group has...

Latest News

SA rules the roost at...

7 hours ago | Sports

The South African swimming team opened the African Swimming Federation Zone IV Championships with a total of 19 medals (eight gold, eight silver and three...

Child rapist gets 35 years

7 hours ago | Justice

The Swakopmund Regional Court has imposed a long sentence on a man arrested in 2014 for raping four minor girls at the coastal town. ...

Crisis looms as rain stays...

7 hours ago | Weather

The wetter climatic conditions that marked the start of February in Namibia are likely to cease and make way for dry conditions for the rest...

Okahandja councillors defiant

7 hours ago | Politics

Swapo Party secretary-general Sophia Shaningwa has summoned the party's representatives on the Okahandja town council to a meeting this afternoon at the party headquarters in...

Kunene terminatesCRO contract

7 hours ago | Government

The Kunene regional council has paid an undisclosed lump sum to terminate the contract of former chief regional officer (CRO) George Kamseb, who had refused...

Innovation is essential

7 hours ago | Opinion

So yet another dismal season of dismal rainfall is upon us and soon coming to an end with no respite in sight. That Namibia is...

Cut Rukoro some slack

7 hours ago | Sports

I know many people are celebrating the eventual exit of long-serving Namibia Football Association secretary-general Barry Rukoro but I believe he deserves praise for the...

Not conflicted: Hilda Basson-Namundjebo

7 hours ago | Sports

The chairperson of the Namibia Football Association's Normalisation Committee, Hilda Basson-Namundjebo, says there is no conflict of interests in her position as the new administrator...

Chief Kauluma laid to rest

7 hours ago | People

The deputy chairperson of the Council of Traditional Leaders in Namibia, Chief Immanuel #Nu Axa /Gaseb, has urged young Namibians to emulate the virtues and...

Load More