Bank Windhoek disburses N$50 million at prime less 0.5% for SME support
By Jaenique Swartz.
Bank Windhoek’s Executive Officer of Business Banking, Leon Koch announced on 09 May that the bank has disbursed N$50 million over the past months in support of Small and Medium Enterprises (SMEs) in the country.
“We support the development of SME’s because the play a crucial role in the Namibian economy through value creation in various sectors and assisting in reducing unemployment” said Koch.
The bank stated that there are specific conditions with which prospective SME borrowers must comply. These conditions are viewed as crucial for fostering a long-term relationship with the bank.
First, prospective applicants must be a registered business entity with the Business and Intellectual Property Authority (BIPA). Even if it is a sole proprietor, it must still be registered. And second, the business’ annual turnover must not exceed N$60 million.
Applicants will be assisted based on previous participation with loan schemes or existing SME Economic Recovery Loan schemes with Bank Windhoek or other banking entities.
Moreover, Koch stated “Bank Windhoek would extend loans to qualifying SMEs at the Prime Lending Rate less 0.5%.”
The obligation to pay the interest and capital on these loans is deferred for 6 months from the day of signage with the bank.
Bank Windhoek said it views this investments as a means to improve economic growth and employability opportunities. “These loans will put SMEs in a position where they are able to pay for operational expenses and to retain and pay their employees,” said Koch.