{"id":14647,"date":"2022-03-11T17:19:09","date_gmt":"2022-03-11T17:19:09","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans"},"modified":"2022-03-11T18:08:37","modified_gmt":"2022-03-11T18:08:37","slug":"life-cover-now-accepted-for-multiple-loans","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans","title":{"rendered":"Life cover now accepted for multiple loans"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>THERE is no need for loans to have their own single credit insurance any more, regulators, the Bank of Namibia (BoN) and the Namibia Financial Institutions Supervisory Authority (Namfisa) announced in a statement this week.<\/b><\/p>\n

According to the two institutions, multiple cessions can now be accommodated by banks and insurers on a single life insurance policy. The two regulators in a joint statement said when an insurance policy is sufficient to guarantee multiple credit facilities obtained by the policyholder, it is no longer necessary to transfer the entire value of the policy to a single credit provider.<\/p>\n

This means, for example, a life cover of N$2 million, should be sufficient to cover at least three or four loan products taken out. This could then be used as credit insurance for all the loans together, each being allocated a portion that fits to that loan.<\/p>\n

\u201cThe policyholder may choose to assign only a portion of the policy cover necessary to obtain the credit facility. The remainder of the policy can be transferred to other credit providers or left as is. This measure can also be applied to existing policies,\u201d the statement reads.<\/p>\n

At the end of January this year, BoN data shows Namibians have taken out loans worth N$62 billion from commercial banks, of which the majority was on mortgages at N$43 billion. It is mainly these mortgages that commercial banks require as cover for any defaults or in the case of death and other negative eventualities.<\/p>\n

The regulators said this move would benefit the individual and save money on acquiring separate life insurance policies to serve as collateral for various credit facilities offered by credit lenders.<\/p>\n

\u201cAs a result, banks and other lenders no longer require the physical original policy document to be handed over to the financial institution for the duration of the loan. The measure goes into effect immediately,\u201d the joint statement reads.<\/p>\n

It is not clear how this would affect the credit risk associated with individuals when they have one policy spread over different credit facilities \u2013 especially since during the past six years, the creditworthiness of an average Namibian has eroded massively.<\/p>\n

Non-performing loans at the end of December this year hit N$6,7 billion, at least 6,4% of the total N$105 billion loan book. With increasing interest rates, fewer opportunities and spiking inflation, analysts have warned that defaults are set to most likely increase.<\/p>\n

PSG Namibia’s Michelle Louw says the new rule as announced by the regulators is not expected to have any impact on the credit risk banks associate with borrowers.<\/p>\n

\u201cIt is to the advantage of the bank’s clients, and the bank is still covered in terms of its credit risk exposure,\u201d she says.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. THERE is no need for loans to have their own single credit insurance any more, regulators, the Bank of Namibia (BoN) and the Namibia Financial Institutions Supervisory Authority (Namfisa) announced in a statement this week. According to the two institutions, multiple cessions can now be accommodated by banks and insurers on a […]<\/p>\n","protected":false},"author":84,"featured_media":14646,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8,16],"tags":[234,236,233],"class_list":["post-14647","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","category-twitter","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nLife cover now accepted for multiple loans - Namibia<\/title>\n<meta name=\"description\" content=\"THERE is no need for loans to have their own single credit insurance any more, regulators, the Bank of Namibia (BoN) ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Life cover now accepted for multiple loans\" \/>\n<meta property=\"og:description\" content=\"THERE is no need for loans to have their own single credit insurance any more, regulators, the Bank of Namibia (BoN) ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-11T17:19:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-03-11T18:08:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/03\/img-622b900f81d89.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"405\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Life cover now accepted for multiple loans\",\"datePublished\":\"2022-03-11T17:19:09+00:00\",\"dateModified\":\"2022-03-11T18:08:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans\"},\"wordCount\":469,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/03\/img-622b900f81d89.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/life-cover-now-accepted-for-multiple-loans\",\"name\":\"Life cover now accepted for multiple loans - 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