FNB joins Development Bank’s risk sharing initiative
FNB Namibia has partnered with the Development Bank of Namibia on the risk sharing initiative which aims to alleviate the collateral constraints entrepreneurs are facing, covering loans of up to 60%.
Sam Ikela, Segment Head, Small Medium Enterprises at FNB said the size of the loan facilities will range between N$50,000 to N$1 million for both short term overdrafts and long-term loans with a maximum repayment period of five years.
The guarantee scheme is for SME with annual turnover of up to N$10 million, SME that are established and operating in Namibia and exclusively owned by Namibian nationals and SME’s with development impact capabilities such as job creation, rural development, youth and women empowerment.
“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,” Ikela said.