1.1 Ensure responsible lending practices that prevent borrower exploitation.
1.2 Embed ESG principles into lending operations so financial growth aligns with social responsibility and sustainability.
1.3 Comply with Bank of Zambia regulations and international ESG standards.
2.1 Applies to all lending activities including personal loans, SME financing, microloans, and digital credit.
2.2 Covers all staff, board members, and third-party agents engaged in credit delivery.
2.3 Extends to all borrowers in both urban and rural Zambia.
3.1 Fairness: Loans must be issued transparently with clear terms.
3.2 Affordability: Decisions based on borrower repayment capacity, not exploitation.
3.3 ESG Alignment: Financing that encourages positive social, environmental, and governance impact.
3.4 Consumer Protection: Strict adherence to BoZ credit and consumer protection regulations.
3.5 Non-Discrimination: Equal access to credit regardless of gender, age, ethnicity, or location.
4.1 Interest rates stay within BoZ-approved limits and are disclosed upfront.
4.2 No hidden charges or predatory fees.
4.3 Loan terms explained in local languages where necessary.
4.4 Lending only after proper affordability assessment (Debt-to-Income ratio ≤ 40%).
4.5 Borrowers receive clear repayment schedules and can settle early without punitive penalties.
4.6 Collateral seizure only through due legal process.
Environmental (E): Support eco-friendly projects; avoid financing activities that degrade the environment.
Social (S): Prioritize lending to women, youth, and underserved rural communities; promote financial literacy; reduce over-indebtedness.
Governance (G): Board oversight on lending practices; regular ESG reporting; zero tolerance for corruption or unethical lending.
6.1 Establish an Anti-Exploitation & ESG Committee within the Board.
6.2 Compliance Officer reviews loan agreements and alignment with policy.
6.3 Independent audits verify compliance with BoZ, ESG, and consumer protection standards.
6.4 Whistleblower protection for staff and customers who report exploitation.
7.1 Quarterly ESG and consumer protection reports submitted to BoZ and the Board.
7.2 Disclosure of lending practices, average interest rates, and borrower protection measures in annual reports.
7.3 Engagement with NGOs and civil society on responsible finance awareness.
8.1 Policy reviewed annually by the Board.
8.2 Updates incorporate regulatory changes from the Bank of Zambia and global ESG developments.
