Letshego Suspends New Payroll Deduction Loans for Government Employees
Letshego Bank Namibia and Letshego Micro Financial Services Namibia have announced the immediate suspension of all new Deduction at Source (DAS) loans for government employees.
The move comes after the Ministry of Finance stated that discretionary payroll deductions will be discontinued by November 30, 2025. Under this system, loans were directly deducted from employees’ salaries, but this practice will no longer be permitted.
Going forward, Letshego has confirmed that new micro-lending loans will be processed through debit order arrangements. Each loan will also be subject to a credit affordability assessment to ensure responsible lending and prevent over-indebtedness among borrowers.
A spokesperson for Letshego said the bank remains committed to providing financial support to government employees, but the changes are necessary to comply with the new government directives.
The Ministry of Finance has emphasized that all financial institutions must adhere to the revised payroll rules by the end of November, ensuring that employee salaries are protected from unauthorized deductions
About the Author
Aneli Fura is a Senior Editor at The Updated World, where he oversees and contributes to general news coverage across Namibia. His reporting focuses on crime, accidents, local developments, and other important stories affecting communities across the country.
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