Payroll deductions strengthen the collateral base of borrowers, which has a major impact on credit deepening, a report on Namibia’s experience with micro-lending and payroll indicates. The report, availed to Nampa on Monday, states that micro-lending plays a significant role in expanding access to credit and unlocking the productive capacity of people who had little access to financial services. ‘There exists a need to improve compliance standard to ensure that consumers are protected and not put at risk of unscrupulous and predatory lending practices. Although this study does not provide a quantitative analysis of the longer-term impact of payroll lending on credit deepening and the impact on economic growth, given the paucity of empirical data, the evidence presented does provide an overview of the contribution payroll deductions has had on the creation of a strong domestic credit market,’ the report reads.