In Cameroon, an individual may occasionally lend their own money in CFA francs, but regular lending is reserved for banks and microfinance institutions licensed under COBAC. A written agreement, a traceable transfer and strong suspicion of online lenders are essential.
The BEAC CFA franc and the CEMAC zone
Cameroon uses the Central African CFA franc, issued by the BEAC, the regional central bank, and shared with Gabon, Congo, Chad, the Central African Republic and Equatorial Guinea. Banking rules, usury rates and supervision are harmonised across CEMAC.
A one-off civil loan versus illegal lending
Helping out a brother or a colleague remains a civil loan. Repeatedly offering credit to the public, for example on Facebook or WhatsApp, is a banking activity reserved for institutions licensed by the Central African Banking Commission, known as COBAC.
Licensed microfinance and savings cooperatives
For genuine credit, the lawful options are licensed microfinance institutions, banks such as Afriland First Bank, and savings and credit cooperatives. Check their licence with COBAC and with the Ministry of Finance, known as MINFI, before signing anything at all.
A usury rate set every quarter by the BEAC
Regulation No. 04/19/CEMAC/UMAC/CM governs the overall effective rate and punishes usury. Every quarter, the BEAC Monetary Policy Committee sets a usury rate for each member state, taking consumer protection into account for loans to private individuals.
Civil Code or common law depending on the region
In the eight French-speaking regions, loans follow the Civil Code inherited from 1804, which requires writing to stipulate interest. In the North-West and South-West, common law applies in civil matters, so a contract drafted with a local lawyer is advisable.
Tontines, njangi groups and emergency funds
Many Cameroonians borrow first from their tontine, called njangi in the English-speaking area. The emergency fund or an advanced payout often carries interest set by the group. Insist on a written register and a signed list of members present.
MTN Mobile Money and Orange Money as evidence
A transfer through MTN Mobile Money or Orange Money leaves a time-stamped record linked to a number registered to an identified person. Keep the confirmation text messages and request a statement from the operator, which helps in court if anything is disputed.
Interest received and the IRCM tax
Interest on a debt normally counts as investment income, subject to IRCM, the tax on movable capital income, at an indicative standard rate of 16.5%, municipal surcharges included. Our page on how interest on a private loan is taxed lists what to check.
Registration and notarial deeds
Registering an acknowledgement of debt at the tax office gives it a certain date that binds the heirs. For a large sum or security over titled land, a deed signed before a notary to secure a private loan remains the strongest option.
Recovery through an OHADA payment order
If the borrower fails to repay, the OHADA Uniform Act on simplified recovery procedures allows the lender to request a payment order from the president of the competent court. This fast track requires a certain, liquid and due debt, proven in writing.
Feymania and fake lenders on social media
In Cameroon, a feyman is a con artist who lives off schemes. Fake lenders post offers of quick credit, then demand processing fees through mobile money, as described in our article on loan scams on social media.
ANTIC, criminal police and gendarmerie
The National Agency for Information and Communication Technologies, ANTIC, says it recorded around 17 500 cybercrime complaints in 2025. Victims file a complaint at a police station or gendarmerie brigade, bringing screenshots, phone numbers and transfer receipts.
Steps to a secure private loan in Cameroon
- Confirm that the lender uses their own funds and does not offer credit to the public without a COBAC licence.
- Draft an acknowledgement of debt in French or English, with the amount in figures and words, the term and the rate.
- Compare the agreed rate with the latest usury rate published by the BEAC for Cameroon.
- Have the signatures certified or register the deed at the tax office when the amount is significant.
- Pay the funds by bank transfer or mobile money, never in cash without a signed receipt.
- Keep a dated repayment schedule and every proof of payment until the debt is fully settled.
Costs and key figures in Cameroon
| Item | Order of magnitude | Note |
|---|---|---|
| Interest between individuals | Free below the usury rate | Rate set every quarter by the BEAC, to be checked |
| IRCM on interest | 16.5% indicative | Standard rate including municipal surcharges, to confirm with the DGI tax authority |
| Registration of the deed | Variable duties | Scale set by the General Tax Code, ask at the tax office |
| Notarial deed | Fees and duties | Request a quote from a notary before signing |
| Fees demanded by a fake lender | Total loss | No legitimate lender asks for payment before releasing funds |
Documents to gather before lending or borrowing
- National identity card or passport of each party
- Acknowledgement of debt or loan agreement signed in two copies
- Proof of the borrower's income: payslip, certificate of activity or statements
- Bank details or mobile money number registered in the recipient's name
- Dated and signed repayment schedule
- Proof that the funds were paid: transfer advice or operator text message
Mistakes and scam warning signs to spot
- Paying processing, insurance or release fees through mobile money to an unknown lender met on Facebook or WhatsApp.
- Trusting a lender who claims to be a microfinance institution but does not appear on the COBAC list of licensed institutions.
- Lending to a relative without any written record, then having no proof to show the heirs after a death.
- Sending a copy of your identity card and your access codes to a stranger, who can then open accounts in your name.
- Accepting a very high monthly rate imposed verbally without comparing it with the usury rate in force.
Common questions about private loans in Cameroon
Is a private individual allowed to lend money in Cameroon?
Yes, on an occasional basis and with their own funds, as with a loan to family or friends. Making lending a regular activity, with advertising and multiple clients, requires a bank or microfinance licence issued within the COBAC framework.
What is the maximum interest rate allowed on a peer-to-peer loan in Cameroon?
The rate must not exceed the usury rate set every quarter for Cameroon by the BEAC Monetary Policy Committee. It changes regularly, so check the latest published decision or ask your bank before you sign.
Must interest from a family loan be declared to the Cameroonian tax office?
In principle, interest is investment income subject to IRCM. An interest-free loan generates no such income. Your exact situation depends on your tax status, and an adviser or your local tax office can confirm it.
What should I do after paying fake processing fees to a lender?
Stop all payments, immediately report the recipient number to your mobile money operator, then file a complaint at the police station or gendarmerie with screenshots, adverts and receipts. The chances of recovering money fall quickly over time.