Letshego Namibia to end deduction at source loans

Letshego Holdings Namibia has announced that it will no longer give out new deduction at source loans to government employees.

This comes after a directive from the Ministry of Finance. Instead, all new micro-lending loans will now be paid back through debit order arrangements and will be subject to credit affordability checks.

Even though this is a big change, Letshego has been preparing for it for years. Since 2016, the company has been working on growing its business beyond micro-lending.

It now offers banking services such as personal loans (paid back through debit order), home loans, savings products and transactional accounts.

The company’s diversification strategy is already showing results.

By June, Letshego’s deposits book, which includes savings and transactional accounts, had grown to more than N$1.18 billion, while its home loan portfolio stood at nearly N$200 million.

Letshego Holdings Namibia chief executive Ester Kali says the move proves the company’s long-term plans are paying off.

“Our diversification strategy has made our business stronger and more resilient. We remain committed to financial inclusion and will continue to deliver value to our customers and shareholders,” says Kali.

Despite the changes, Letshego Namibia, together with its subsidiaries Letshego Bank Namibia and Letshego Micro Financial Services Namibia, will continue to support customers in need of financial services. Loans and banking products remain available, with repayments now moving fully to debit order systems.

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