The South African micro-lending company (name supplied) is said to be promising "appealing" micro-loans of between N$10 000 and N$50 000 with repayment periods of up to 10 years and interests rates of 17 per cent per annum.

Before getting the loan, one is asked to deposit a "subscription fee" of N$200, which is not refundable, and then fill in forms for a loan.

However, more than 10 people have lodged complaints with Namfisa alleging that after depositing the N$200 and filling the necessary forms, they were turned down and told that they did not meet the requirements of getting loan.

Namfisa manager for micro-lending and credit management, Rachelle Metzler, told The Namibian this whole thing appeared to a scam citing a similar incident which happened before - last year - with another company from South Africa.

She said there were many irregularities with the advert including that the SA company has no licence to operate in the country as it is not registered with Namfisa hence it has no business with Namibian consumers; interest rates offered are too low; time for repayment is unrealistic and the loans promised are illegal as the maximum loan offered by micro-finance lenders in Namibia is N$20 000.

"The impression we get is that the whole scheme is around the N$200 and it is a scam," said Metzler.

Metzler said since Namfisa had no jurisdiction to deal with the company, as it based in South Africa but just advertising locally, her organisation had taken the issue up with the Micro Finance Regulatory Council of South Africa, who in turn were now conducting investigations into the matter.

Namfisa also wanted to alert the public that since the organisation has no regulatory authority over institutions and individuals in foreign countries, victims of such scams were unable to have recourse through the organisation.

Efforts to get comments from the SA-based company were fruitless as contact numbers were unreachable.

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