Development Bank joins central bank’s SME Recovery Loan Scheme
By Jaenique Swartz.
The Development Bank of Namibia announced its participation in the Bank of Namibia’s SME Economic Recovery Loans Scheme.
The bank now offers SMEs two types of recovery loans.
The KfW Bankengruppe (KfW) scheme is added to the list of schemes offered by the bank, DBN Head of Marketing and Corporate Communication, Jerome Mutumba said, stating that the Bank of Namibia scheme is valid for a duration of seven years with an interest rate of prime less 0.5%.
The KfW is a much shorter scheme as its repayment will conclude by 31 October 2025, the scheme offers a fixed interest rate of 5.925% with the first 12 months being interest free.
Furthermore, Mutumba stated that businesses that qualify for participation must indicate the amortisation period as a default will lead to a restructuring of the loan on the Developmet Bank’s terms of lending.
He cautioned SME owners to determine their need for relief accurately since taking up a loan under any of the two schemes add to the business’ existing debt obligations.
Businesses should use the facilities to rebuild so that the investment improves their sustainability in the long run.
More information regarding the schemes is available on the Development Bank website as well as at the respective branches in Windhoek, Ongwediva, Rundu and Walvis Bay.