JUDGMENT- IZWE LOANS ZAMBIA PLC VS. BEATECH ENTERPRISES LIMITED AND BEATRICE CHISANGA 2025-HPC-0583 [2025] (26TH AUGUST 2025)

We are pleased to have acted for Izwe Loans Zambia Limited in the recently concluded matter of Izwe Loans Zambia Limited vs. Beatech Enterprises Limited & Beatrice Chisanga (2025/HPC/0583) before the High Court.
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‎The Court reaffirmed the legal position on interest recoverable on non-performing loans, clarifying that interest may continue to accrue, provided it does not exceed the outstanding principal at the time of default, under Section 110 of the Banking and Financial Services Act No. 7 of 2017.
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‎This decision, building on recent jurisprudence, provides important certainty for lenders and borrowers alike. It confirms that while default does not suspend contractual obligations, the law equally safeguards against excessive interest claims.
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‎Our team, led by our Senior Associate @Mary G. Mbewe, was privileged to represent our client in this matter, which reinforces key principles in Zambia’s Financial and Banking Law.
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‎At NOVUS HM Legal Practitioners, we remain committed to delivering practical and strategic legal solutions that strengthen confidence in Zambia’s commercial and financial sector.