Frequently asked questions

Frequently asked questions

What does Izwe Zambia do?

Izwe is a financial solutions company primarily offering personalloans to government and selected parastatal employees as well as secured lending products to individuals and SMEs.

Where does Izwe operate?

Izwe is a subsidiary of the Izwe Africa Group, an international financial solutions group that operates in Ghana, Kenya and Zambia. The group’s headquarters are located in Mauritius.

How long has Izwe been in existence?

Izwe was established in early 2008 and started serving customers in December 2008.

Is Izwe registered with any Regulatory Bodies?

Izwe is a non-deposit taking financial business registered with and licensed by the Bank of Zambia (BOZ). It is also regulated by the Securities Exchange Commission (SEC), the Pensions and Insurance Authority (PIA) and the Lusaka Stock Exchange (LuSE).

Where are Izwe’s branches located?

Izwe has branches in the following locations: Chipata, Chinsali, Kabwe, Kasama, Kitwe, Livingstone, Lusaka, Mansa, Mongu and Solwezi. To view our branch locator, click here.

How do I find a branch near me?

You can find your nearest branch by using the Branch Locator tool.

How do I contact Izwe for general enquiries?

You can go to any of our branches, SMS Izwe to +260 (0) 764 921 922 for a call back, or call us on +260 (0) 762 434 218

What will I need to apply for an Izwe loan?
  • An employee number – for all Civil Servants (GRZ), Zambia Air Force (ZAF) and Zambia national Service (ZNS)
  • A valid national ID/NRC
  • A recent original passport sized photo of yourself
  • A bank account statement with recent 2 months’ salary
  • Recent three months’ salary slips
  • A signed pre-approval form and Employer’s letter of introduction
How do I apply for a loan:

There are four ways in which you can apply for a loan with Izwe:

  1. Directly at one of our branches
  2. Through our vast sales agent network
  3. Through our helpful call centre agents. Call me back 
  4. By applying online
Do I need to be permanently employed to get a loan?

Yes, you need to be a permanently employed government employee. including Zambia Air Force (ZAF) and Zambia National Service (ZNS).

What loan amounts and terms can I get?

Izwe offers loans up to ZMW150,000 with up to 72 months (6 years) to repay.

When will my loan be paid out to me?

Once your loan has been approved, you can receive your money immediately via and EFT, subject to all your documents being in order.

How will my loan be paid out to me?

The approved loan amount will be paid to you via EFT.

How do I make repayments?

All personal loan repayments are made via a salary deduction at your employer. The repayments are automatically deducted via your payroll office. Even if you have a payroll deduction you must make sure that your instalments are pain in full, and on time. You are responsible for all arrears that should arise.

Can I roll-over my loan and get a larger amount?

Yes, rollovers are permitted.A new loan will be issued to the borrower, but a portion of the new loan will be used to settle the outstanding amount of the current loan, with the balance being paid out to the borrower.

Will my loan be insured?

We offer credit life insurance with our loan products which cover death, disability, medical incapacitation and retrenchment under certain terms and conditions.

What is the interest rate?

The interest rates vary depending on a number of factors. All interest rates are reflected on our pre-printed payment schedule (a sales consultant or dedicated agent can assist you with this) and on the pre-agreement that we issue to you, as per the Bank of Zambia requirements.

Can I settle my loan early?

As per our standard terms and conditions a client is entitled to settle a loan prior to the contract end date. If you would like to settle your loan early contact our call centre on +260 (0) 762 434 218 and we will generate a settlement quote for you. A settlement quote takes 7 days to prepare and is valid for 3 days.

If I have some spare money, can I pay a portion of the loan, over and above my monthly deduction?

Yes, you may pay your instalment or arrears at any of our branches but your fixed salary deduction will continue to run until your loan is settled in full.

How do I get my account statement?

You are welcome to visit at Izwe branch or contact us on +260 762 434 218 to enquire about the outstanding balance of your loan or savings account.

Is there a cooling off period?

As per the standard terms and conditions included in the Secured Loan Agreement, a borrower has a right to cancel their loan agreement within a certain period.

How long does it take to get payment on my invoices?

You will submit your invoices straight to us after acknowledgement by your client/s. Izwe will make a direct payment to you within 24 hours, at a discounted rate. Your client then pays Izwe Loans based on the agreed payment terms with them (60 days or less). If a payment is made before the due date, any surplus funds may be paid back to you.

What documents are required to obtain a working capital facility from Izwe?
  • Certificate of Incorporation
  • Articles of Association
  • Tax Clearance Certificate
  • PACRA (Patents and Companies Registration Agency) computer print out
  • Company Director/s recent and original passport size photos
  • Company Director/s Identity i.e. copy of NRC or valid driver’s license
  • Application cover letter on your company letterhead
  • Resolution from your business director/s, stating authorisation to sign contracts and to enter into an agreement with Izwe Loans
  • 3 months stamped business bank statements
  • Proof of Business Premises i.e. utility bill or lease agreement
  • Copies of invoices to be discounted, stamped by your client
How do I qualify for Invoice Discounting?

All SMEs can qualify provided they meet our credit criteria and have confirmed and fulfilled invoices against their corporate client/s, where Izwe has an approved arrangement in place.

How much to I qualify for?

Up to 70% of the invoice value, net of VAT – paid by Izwe withing 24 hours.

Can I submit a number of invoices simultaneously to Izwe for payment?

Yes you can, provided we have a MOU with your corporate client/s.

What are the benefits of discounting with Izwe?
  • No more waiting to get paid. 24 hour turnaround time from full invoice submission to approval and payout.
  • Stable cash flow is assured, so you can continue supplying on new orders
  • No more chasing clients and following up for payments
  • Improves ability for business to deliver on promises
  • All excess refunds are paid back to you within 24 hours of corporate payment
  • We offer highly competitive rates in the micro-finance sector for this solution with no hidden costs.
Is any security or collateral required to benefit from Invoice Discounting?

No, as the facility is self-secured through the MOU Izwe Loans enters into with your corporate client.

Which type of organisation would Izwe enter into an arrangement with to financially assist its suppliers?

Izwe works with corporate clients in key sectors of the economy, such as mining, energy, manufacturing, telecoms and more.

What role does Izwe play between the SME and the Corporate?

Izwe delivers dependable financial assistance through accelerated invoice payment financing, bridging the payment gap. We enter into a Memorandum of Understanding (MOU) with you (the corporate client). When services are provided by an SME, your supplier can send these invoices straight to us for direct payment to them, within 24 hours. We will then recoup the funds from you, as agreed (up to 60 days).

Is there liability on us with regards to settling our supplier (SME) invoices?

The contractual agreement for the Izwe financing is between your supplier and Izwe. All borrowing costs are borne by the supplier. You only play a key facilitation role in terms of the repayment terms (60 days or less) to Izwe., once we have settled with our supplier.

What happens if settlement exceeds the agreed repayment period?

The debt remains that of your supplier. Izwe will pay their invoice on your behalf, and collect the amount from you within your repayment terms , even if the repayment is a little delayed(60 days or less).Any additional costs incurred as a result of this will be for your supplier. Based on the MOU signed, the onus remains on you to repay Izwe Loans on or before the due date. Delays for payment may attract additional fees to the supplier once you settle the invoice as per your MOU obligations. In all other instances no additional costs will be borne to you, in order to benefit from this solution to best manage your cash flow.

What are the benefits to us, the corporate client?
  • Get the best service provider for the job, regardless of their payment requirements
  • Eliminate the need to pay suppliers COD
  • Match receivables with payables and manage liquidity better
  • Contribute to your suppliers’ capability to deliver, improving on your operational efficiency
  • Assure continued service from key suppliers while maintaining payment terms, up to a maximum of 60 days
  • We negotiate better pricing for corporates from participating suppliers that participate in the Izwe negotiated supplier finance scheme
Is there any cost to this offering?

No, there is no charge applicable to the corporate client. All that needs to be done is for your organisation to enter into a MOU with Izwe Loans, and we will take care of the rest.

Am I allowed to settle my loan early?

As per our standard terms and conditions a client is entitled to settle a loan prior to the contract end date however this may carry a fee and some terms and conditions apply.

How does IZWE calculate the settlement amount for customers? What are the components that go into your calculation?

Izwe will take the remaining balance as at the last month-end on your loan, charge interest on the outstanding balance up to and including the settlement date, add the monthly service fee and insurance for the month of settlement and add an early settlement administration fee, if applicable. Only if the client has not provided Izwe with a required 60 days’ notice, then we will charge interest in lieu of the notice period. This however can be avoided by the client providing Izwe with the required notice.

Are there any fees for paying early? If so, how are they calculated?

Izwe will take the remaining balance as at the last month-end on your loan, charge interest on the outstanding balance up to and including the settlement date, add the monthly service fee and insurance for the month of settlement and add an early settlement administration fee, if applicable. Only if the client has not provided Izwe with a required 60 days’ notice, then we will charge interest in lieu of the notice period. This however can be avoided by the client providing Izwe with the required notice.

How soon will the deduction stop if I settle my loan?

We give notification to your Employer the same month that the loan is settled. However, there are instances where the employer may take a little longer to stop the deduction. In those cases we will refund you immediately.

If I have some spare cash, can I come in to the Branch and pay a portion of the loan?

Yes, you may pay in at any time but the monthly deduction amount will not change and will continue to run until the reduced balance is settled. There are very specific procedures to pay in manually so please get this from the branch staff before making payment. Do not give cash to anyone. Izwe doesn’t accept cash payments.

Can I give the money to my Agent or pay cash at the Branch?

Agents and staff are not authorized to receive cash payments from any clients. All payments must be made at our offices using the correct methods.

If I take a loan for 60 months and I decide now to pay back in 12 months’ time, how much will I be paying?

Interest, monthly fees and monthly insurance will be charged on the loan until the debt is paid in full.

What if I change my mind within the same week and want to return the cash?

If the funds are returned to Izwe within 5 days then you will not be charged interest or fees.

Why does it take so long (10 days) to prepare a settlement quote for your client?

This is to facilitate completion of all the internal administrative procedures prior to issuing a settlement quote. The settlement calculations are system driven and have to be issued centrally from our head office.

Should it not be the same day?

In certain cases it may be quicker however we commit to provide the quote within this maximum time.
The settlement quote is valid for 5 days from the date of issue and the exact amount should be paid on or before the expiry date.

Why must I wait for 60 days to have an early settlement for me not to attract notice period interest?

Because we work hand in hand with your employer who is running a monthly payroll process, cancellations and settlements require notice and time to complete.

Why is the time allowed to do a settlement only 5 days after a settlement quote is given?

The settlement quote is affected by many factors which can change at any time. We allow 5 days for the settlement. It is advised that clients come to us for a quote when they already have the money available.

How much do I pay in case I want to settle my loan?

You must settle the figure quoted on the settlement quotation. Each settlement will be individually calculated as there are many factors taken into consideration.

Will I qualify for another loan after I settle my first loan? If yes how long?

Yes. If you see out the full term of your loan and are not in arrears you may borrow the day after you settle or alternatively, if you settle the outstanding balance before the contractual period end the same applies.

How long will it take for the deduction to stop after repayment?

It should stop in the month your employer processes your stop instruction from Izwe.

Why are the staff not able to tell me exactly how much I will be paying as early settlement balance or how it is calculated when I am applying for the loan?

The calculations are system generated and are issued from our central support office. Without knowing the exact day you wish to settle before the maturity date this request is not possible.

Why must I suffer for notice charge when settling my loan especially when this was not communicated from the beginning?

The notice period is stipulated on the terms contained within your contract which you signed upfront.

Why are roll over clients not treated differently in terms of the settlement charges?

A rollover client are treated differently from an external settlement in three ways:

  1. For rollover clients there is no notice period required and you will not be charged any notice period interest either;
  2. Secondly, rollover clients will not be charged an early settlement fee.
  3. Rollover clients will only be charged a rollover admin interest.
What if I need more money after I have paid a few installments? Can I come in and top up, or get a second loan?

The system may allow second loan depending on your available affordability as well as eligibility based on our current credit policy. But both options are possible. Please come in should you ever need assistance.

Why are rollover and settlement balances bigger than the balances on the pay slips when clients have only some few months to finish the loan?

This is not possible unless the balance on the payslip is incorrect, in which case we will investigate and discuss with you the outcome.

Izwe will never charge a client more than the original contractual amount.

If I don’t use up all of my affordability can I come back later to take another loan? If so, after how long?

Yes, at any time. Second loans are allowed to a maximum of two active accounts but does not apply to Counties, NSIS, KNH and MTRH. All clients can qualify for a roll over within the same month and for existing as long as the existing loan is performing well.

Once I settle a loan, how long before the deductions cease on my pay slip?

Once your loan is settled we notify your employer within the same month. Unfortunately however sometimes due to system constraints your employer might accidentally deduct again. Should this happen we will refund the incorrect deduction to you immediately.

Why has it taken more than 2 months to correct my over deductions /double deductions?

Unfortunately sometimes due to system constraints errors associated with your payroll, errors such as these may take a month of or two to be fully resolved. We will however always process refunds as soon as possible.

Why do you continue to deduct my money even after I have settled the loan?

Unfortunately sometimes due to system constraints errors associated with your payroll, errors such as these may take a month of or two to be fully resolved. We will however always process refunds as soon as possible.

Why do I have to always report over deductions to you before to take steps to refund?

We do our best to notify all customers in advance that they are due for a refund so we can make the refund process as swift and convenient as possible for the client. Where a refund is not done the amount is uploaded in your account to reduce the outstanding balance.