Lesana

In Lesotho's evolving financial landscape, Lesana Financial Services Ltd has emerged as a significant player, particularly within the microfinance sector. Operating under the stringent oversight of the Central Bank of Lesotho, Lesana provides crucial credit solutions, bridging gaps for individuals seeking financial support. This comprehensive profile, crafted by a financial expert for the local Basotho community, delves into Lesana's operations, products, and market standing, offering practical insights for those considering their services.

Company Profile and Market Presence in Lesotho

Established in 2013 as a subsidiary of the pan-African Select Africa Group, Lesana Financial Services Ltd (Lesana Lesotho Ltd) is a privately held entity deeply rooted in the Mountain Kingdom. Registered in Lesotho under company number 26662201002, its headquarters are strategically located at Ground Floor, Development House, Kingsway Road, Maseru. As a non-deposit-taking microfinance institution, Lesana specializes in consumer and housing credit, primarily targeting government and semi-government employees, though its services are increasingly extending to the private sector.

The company is led by an experienced management team dedicated to financial inclusion and responsible lending. Mr. Seabata Ntelo serves as the Chief Executive Officer, bringing over two decades of experience from Nedbank Lesotho and the Central Bank of Lesotho. He is supported by Ms. Khauhelo Ramakongoana, the General Manager, an ACCA qualified professional with extensive banking and insurance experience. The financial integrity is overseen by Mr. Thato Lerata, the Chief Financial Officer, while Mr. Khoabane Chapi, the Sales Executive, drives nationwide marketing efforts for their short-term products.

Lesana's reach across Lesotho is substantial, boasting nine physical branches located in key areas such as Maseru, Leribe, Mafeteng, Butha-Buthe, Qacha’s Nek, Mokhotlong, Thaba-Tseka, Quthing, and Mohale’s Hoek. These branches, complemented by robust digital channels, serve approximately 25,000 active borrowers as of mid-2025. The borrower demographic is diverse: 60 percent government employees, 25 percent from the private sector, and 15 percent representing small and medium enterprises. The average borrower age falls between 30 and 45 years, with a notable 55 percent of clients being female, underscoring Lesana's role in empowering women economically.

Regulatory compliance is a cornerstone of Lesana's operations. Licensed under the Microfinance Institutions Regulations of the Central Bank of Lesotho, the company undergoes annual audits and adheres strictly to capital adequacy requirements. It maintains a clean compliance record and actively participates in regulatory consultations on microfinance and credit information sharing. Consumer protection is also prioritized through transparent fee disclosures, mandatory loan insurance options, a dedicated dispute resolution desk, SMS alerts for repayments, and financial literacy workshops integrated into community outreach programs.

In the competitive Lesotho microfinance landscape, Lesana stands out as the largest non-deposit microfinance institution by both loan portfolio and branch network. It commanded a significant 35 percent share of licensed microfinance lending in Lesotho in 2024, demonstrating its strong market position and trust among Basotho.

Understanding Lesana's Loan Products and Terms

Lesana offers a diversified suite of credit solutions designed to meet various financial needs, from urgent short-term requirements to long-term housing finance. Each product comes with specific terms, interest rates, and fee structures that potential borrowers must carefully review.

Emergency Loan

• Amount: M500 – M5,000 (approximately $30 – $300)
• Interest Rate: 5 percent per month, which equates to approximately 60 percent per annum.
• Term: Up to 5 months, with a re-loan facility available.
• Fees: A processing fee of 2 percent applies, with no origination fee. A late fee of 3 percent per month is charged on overdue amounts.
• Collateral: This is an unsecured loan, meaning no assets are required to guarantee it.

This product is ideal for immediate, smaller financial gaps, but borrowers should be mindful of the higher monthly interest rate.

Debit Order Loan

• Amount: M1,000 – M20,000 (approximately $60 – $1,200)
• Interest Rate: Between 30 percent and 35 percent per annum.
• Term: Up to 24 months.
• Fees: An origination fee of 1 percent, a monthly administration fee of M10, and a late fee of M50.
• Collateral: Unsecured, but repayment is facilitated through a payroll debit order.

Suitable for slightly larger needs with a manageable repayment period, this loan relies on a consistent income for scheduled debit order repayments.

Payroll Loan

• Amount: M5,000 – M250,000 (approximately $300 – $15,000)
• Interest Rate: Prime rate plus 3 percent, typically ranging from 13.75 percent to 14.75 percent based on current prime rates.
• Term: Up to 84 months (7 years).
• Fees: An origination fee of 1.5 percent and an insurance premium of 0.25 percent.
• Collateral: Primarily secured by payroll assignment, with options for additional collateral if required.

This is a more substantial loan option, often used for significant personal expenses or improvements, leveraging an individual's employment stability.

Housing / Consumer Finance

• Amount: M100,000 – M550,000 (approximately $6,000 – $33,000)
• Interest Rate: Set at the prime rate, currently around 10.75 percent.
• Term: Up to 120 months (10 years).
• Fees: Legal registration fees and cadastral charges, depending on the property.
• Collateral: Requires a mortgage over the property being financed.

This long-term product is aimed at assisting Basotho with home ownership or major consumer purchases, offering a more favorable interest rate due to its secured nature.

It is important to note that all USD conversions provided are approximate, based on an exchange rate of M1 = $0.06 as of August 2025. Borrowers should always confirm current rates and fees directly with Lesana.

Applying for a Lesana Loan: Process, Technology, and Support

Lesana has streamlined its application processes, offering both traditional and modern digital channels to enhance accessibility for Basotho. Potential borrowers can apply through the Lesana Mobile App, available on both Android and iOS platforms, or via their web portal. For those who prefer in-person interactions, Lesana’s nine branches nationwide are fully equipped to assist. Emergency Loans also benefit from a convenient telephone re-loan facility, while debit-order and payroll loans can be processed entirely through their digital platforms.

The Know Your Customer (KYC) and onboarding process requires applicants to submit standard documents: a valid identification document, proof of residence, recent payslips, and bank statements. Lesana verifies this information through National Identity records and direct confirmation with employers. In a move towards further digitalization, Lesana initiated a pilot program in 2025 for in-app ID scanning and electronic KYC, aiming to simplify the initial application steps.

Lesana employs an internal credit scoring model that assesses various factors, including employer stability, salary income, existing indebtedness, and data from the Central Bank's microfinance registry. Short-term loan applications often benefit from automated approvals, while larger, long-term loans undergo a thorough review by a dedicated credit committee to ensure responsible lending practices.

Once approved, funds are disbursed efficiently. Clients can receive their loan amounts via direct bank transfer to their personal accounts, through popular mobile money platforms like Mukuru and Orange Money, or as cash pickups at any Lesana branch. This flexibility caters to the diverse banking preferences of the Basotho population.

For collections and recovery, Lesana primarily utilizes automated debit orders for payroll and debit-order loans. Borrowers receive SMS reminders to help them stay on track with their repayments. An in-house collections team manages arrears, while legal proceedings are initiated for non-performing secured loans after a 90-day delinquency period, in line with regulatory guidelines.

The Lesana Mobile App, launched in 2023, is a key component of their digital strategy. It has garnered positive feedback, with an Android rating of 4.1/5 and an iOS rating of 4.3/5 based on customer reviews. The app features a loan calculator, instant approval notifications, a secure document upload facility, a re-loan option for eligible borrowers, repayment scheduling tools, and direct chat support, enhancing the overall user experience.

Customer service is a priority, with Lesana offering a 24/7 call center, live chat functionality, and dedicated collections consultants. Their Net Promoter Score (NPS) stood at approximately 65 as of the second quarter of 2025, indicating a strong level of customer satisfaction.

Navigating the Market: Lesana's Position and Borrower Advice

Lesana's market position is formidable, primarily due to its strategic focus and operational scale. While it faces competition from other financial institutions such as Letshego Lesotho, Standard Lesotho Bank (with its SmartApp personal loans), Nedbank Lesotho, and FNB Lesotho's unsecured loan offerings, Lesana differentiates itself through several key aspects.

Its specialized focus on government payroll loans gives it a distinct advantage in a significant segment of Lesotho's workforce. Furthermore, its short-term re-loan facility, coupled with tiered interest discounts, provides flexibility and incentive for repeat customers. Lesana's institutional credibility is also enhanced by its corporate bond listings on the Maseru Securities Market, diversifying its funding sources and signaling financial robustness.

Looking ahead, Lesana aims for continued growth, with plans to expand its private-sector client base by 20 percent in 2026 and explore partnerships in SME lending. Enhancements to its digital platform for fully paperless lending are also underway, promising an even more efficient and accessible service. Strategic partnerships with institutions like Standard Lesotho Bank for co-branding and telecom providers for mobile money distribution further strengthen its market reach.

Customer feedback generally highlights positive experiences with quick disbursements and responsive customer service. However, some common concerns include the perception of high interest rates on short-term loans, occasional delays in SMS notifications, and the limited loan amounts available for the emergency product relative to rising costs of living.

For Basotho considering a loan from Lesana, here is some practical advice:

• Compare Wisely: Always compare Lesana's interest rates, fees, and repayment terms against those offered by other financial institutions in Lesotho for your specific loan type. A comprehensive comparison can reveal the most cost-effective option.
• Understand All Costs: Beyond the headline interest rate, meticulously review all associated fees, including origination, processing, administration, insurance premiums, and potential late fees. These can significantly impact the total cost of the loan.
• Assess Repayment Capacity: Before committing, honestly evaluate your ability to meet the monthly repayments. Ensure your chosen repayment schedule aligns comfortably with your regular income, especially for payroll-linked loans where deductions are automatic.
• Utilize Digital Tools: Take full advantage of the Lesana Mobile App. Its features, such as the loan calculator and repayment scheduling, can help you manage your loan effectively and stay informed.
• Ask Questions: Do not hesitate to use Lesana's customer service channels (call center, live chat, branch staff) to clarify any doubts or concerns you may have about the loan terms or application process.
• Emergency Loan Caution: While useful for immediate needs, be aware that emergency loans carry a higher monthly interest rate. Plan for prompt repayment to avoid accumulating significant interest charges. Use the re-loan facility responsibly, managing your overall debt.
• Long-Term Planning: For larger loans like payroll or housing finance, consider the long-term commitment. These loans can impact your financial well-being for many years, so ensure they align with your long-term financial goals and stability.
• Responsible Borrowing: In the cultural context of Lesotho, responsible borrowing is crucial. Avoid over-indebtedness by borrowing only what you truly need and can comfortably repay, preserving your financial health and credit standing.

Lesana Financial Services offers valuable financial tools for the people of Lesotho, particularly for those in stable employment. By understanding their products, processes, and market position, potential borrowers can make informed decisions that contribute positively to their financial futures.