FNB signs up for credit guarantee scheme
FNB Namibia has partnered with the Development Bank of Namibia on the risk-sharing initiative, which was announced by the finance minister Iipumbu Shiimi on 19 August this year.
“Our government and FNB, as one of the leading banks in the country, value this sector because of its great potential for the socioeconomic development in terms of economic growth, employment creation and poverty alleviation,” said FNB Namibia’s small medium enterprises segment head Sam Ikela.
“The intention of the guarantee scheme is to alleviate the collateral constraints entrepreneurs are facing and it will cover loans up to 60%. The size of the loan facilities will range between N$50 000 to N$1 000 000 for both short term overdrafts and long-term loans with a maximum repayment period of five years.” The qualifying criteria for the guarantee scheme include the following: - SME’s annual turnover of
up to N$10 million.
- SME is established and operating in Namibia and exclusively owned by Namibian nationals. - Priority will be given to SMEs with development impact capabilities such as job creation, rural development, as well as youth and women empowerment.
Ike la invited budding entrepreneurs to approach FNB for further assistance.
‘We know that domestic small and medium-sized enterprises (SMEs) are responsible for a great contribution to economic growth in our country. This year – more than ever – has shown that in unstable economic times, entrepreneurs should recognise and grab any possible opportunities and work up the courage to establish their own business in their emerging home market.