Imagine you have decided to get medical aid, take out a personal loan or open a savings account in Botswana. You start searching online, visit a few websites, ask friends for recommendations and perhaps make a couple of phone calls. Before long, you have several options in front of you, each promising something different. One has the lowest monthly payment, another has more benefits, and a third seems convenient because you already bank with that institution.
So, which one should you choose? The answer lies in knowing what to compare, which questions to ask and how to look beyond the advertised price. Here are six things to check before choosing your next financial product, whether it is a loan, a savings product, medical aid or an insurance policy.
| Check | The question to ask |
|---|---|
| 1. Total cost | What will I pay in total, not just each month? |
| 2. Cover and conditions | What is covered, what is excluded, and when can I claim? |
| 3. Eligibility | Do I qualify, and will joining late cost me more? |
| 4. Like for like | Am I comparing products that meet the same need? |
| 5. Penalties and exit | What happens if I miss a payment or want to leave? |
| 6. Credibility | Is the provider licensed by the Bank of Botswana or NBFIRA? |
A low monthly payment can be attractive when you are working with a budget, but the cheapest option is not always the most affordable in the long run. Two lenders might offer the same loan amount at similar monthly instalments, yet the total you repay can differ significantly once interest, fees and charges are added up.
This matters most with micro-lenders, which often quote a flat rate: interest charged on the full amount you borrowed for the whole term, even as you pay the loan down. Borrow P10,000 at 30% flat over 12 months and you pay P3,000 in interest, which works out to roughly 51% a year when measured the way a bank measures it, on the balance you still owe.
The Bank of Botswana’s latest household survey found that micro-lenders charged an average of 32% on household loans in 2024, compared with 13.5% on unsecured bank loans. Because lenders do not always quote rates the same way, the safest comparison is the total amount you will repay. Every micro-lender must give you that figure in writing before you sign (more on this in point 5).
The same principle applies to medical aid and insurance, where a lower premium may come with co-payments, which are a share of a claim that you pay yourself. BOMAID, for example, notes that some of its options carry co-payments on certain procedures. Before deciding, ask what the total cost is, whether there are additional fees and whether the price will change over time.
If you join medical aid through work, also check how much of the contribution your employer pays. On BPOMAS, for example, the member and the employer each pay half: on the Standard option, that is P114 each a month. What matters to you is your share, plus any co-payments you pay when you claim.
Financial products often come with conditions that are easy to overlook when you are focused on the price. With medical aid, two plans may advertise similar benefits but differ in annual limits, hospital cover, co-payments or waiting periods.
A waiting period is the time after joining during which you cannot claim certain benefits. BOMAID applies a general waiting period of up to three months, and up to 12 months for specific conditions. Pulamed sets nine months for maternity, 12 months for specialised dentistry and 24 months for pre-existing conditions. So, depending on the scheme, a condition you already have may not be covered for up to two years.
Insurance policies may also contain exclusions, which are circumstances in which the policy will not pay a claim. They are usually listed in a section of their own in the policy document, so ask to see it before you sign.
These details matter because the value of a product depends on how well it meets your needs when you actually use it. Read the terms and conditions, ask the provider to explain anything you do not understand, and pay particular attention to exclusions, benefit limits and any costs you may have to pay yourself.
Finding an attractive product is one thing, but being eligible for it is another. Banks, insurers and medical aid schemes may set requirements relating to income, employment, age, dependants, credit history or the type of cover you need.
Some medical aid schemes also charge a late-joiner penalty: an extra amount added to your monthly contribution if you join later in life without previous cover. The age varies by scheme. BOMAID says the fee may apply if you join after 35, while Pulamed applies it from age 40 to members who have never had medical aid.
Checking eligibility early saves time and helps you focus on realistic options. Find out what the minimum requirements are, which documents you will need and whether your income or employment status affects your options. If anything is unclear, contact the provider before you apply, instead of assuming that an advertised product is automatically available to you.
One of the easiest mistakes to make is comparing options that are not designed to do the same thing. Two medical aid plans may differ in price because one offers basic outpatient benefits while the other provides broader hospital and specialist cover. In the same way, a personal loan, an overdraft (a facility that lets you spend beyond your bank balance, up to an agreed limit) and a micro-lender loan all give you access to credit, but their costs and repayment structures are very different. We compare what each really costs in Personal loan vs overdraft vs micro-lender in Botswana.
Start by deciding what you actually need, and think about what might change in the next few years, such as starting a family, supporting more dependants or a shift in income. Separate your essential needs from your preferences: essentials come first, and optional extras should be weighed against what they add to the cost.
Then judge every option against the same questions:
Asking the same questions of each provider makes it easier to spot meaningful differences, instead of being distracted by marketing claims.
Every product works well when everything goes to plan, so it is worth comparing providers on what happens when it does not. For micro-loans, NBFIRA’s rules say a lender may charge a penalty only when you are in default, and penalties plus additional costs cannot exceed 5% of the outstanding principal per month. Before you sign, the lender must also give you a written schedule showing the total amount payable and the total cost of credit, so ask for it if it is not offered.
It is just as important to know how easy it is to leave. Ask about notice periods, early-settlement charges and what happens to your waiting periods or benefits if you move to another provider. A good provider earns your loyalty, whereas a poor one relies on you finding it too hard to switch.
Price and benefits are important, but so is knowing who you are dealing with. Financial decisions involve your money, your personal information and, in some cases, protection you will need at a difficult time.
Before you send documents or money, check that the provider is licensed. Banks are listed in the Bank of Botswana’s directory of financial institutions, and micro-lenders and insurers are licensed by NBFIRA. If someone you do not know promises guaranteed approval or a special rate, or pressures you to decide immediately, walk away. Whatever you choose, keep copies of your agreements, correspondence and payment records in case you need to raise a concern later.
Choosing a financial product does not have to be overwhelming. Start with the need, set your budget, list your must-haves and compare suitable options using the same questions. You do not have to decide immediately, and you can always ask for the terms in writing before committing. And do not choose a product simply because it is the cheapest, the most popular or the one someone recommended: what works for another person may not suit your circumstances.
Doing all this across several providers takes time, especially when every website presents information differently. That is why we built DoBiz Compare, which brings banking and insurance options together in one place so you can compare them side by side:
Start with your needs. Compare your options. Choose with confidence.
Disclaimer: We check every figure in this article against providers’ and regulators’ own published information, and it was correct when last verified in October 2026. Rates, benefits and rules change, so please confirm the current terms directly with the provider before you sign. This article is general information, not financial advice.