Africa-Press – Namibia. Since March 2023, Bank Windhoek has disbursed N$50 million to support the Namibian Government’s Small-Medium Enterprise (SME) Economic Recovery Loan Scheme, launched in February. On Tuesday, 9 May 2023, Leon Koch, Bank Windhoek’s Executive Officer of Business Banking, shared this news and encouraged eligible SMEs to approach the Bank for assistance.
“As a catalyst for positive change, we are committed to supporting the development of SMEs as they play a vital role in the Namibian economy by creating value across various sectors and helping to reduce unemployment,” said Koch.
The SME Economic Recovery Loan Scheme is a collaborative initiative between the Namibian Government and several local banking institutions, including Bank Windhoek and the Bank of Namibia. Its objective is to stimulate economic growth and job creation by providing additional funding to SME businesses, enabling them to meet operational expenses, retain employees, and sustain working capital.
Koch explained that Bank Windhoek would provide loans to qualifying SMEs at a highly favourable interest rate, below 0.5 per cent of the Prime Lending Rate. To alleviate financial pressure, the obligation to repay the interest and capital on these loans is deferred for six months from the agreement’s signing date.
He emphasized the key eligibility criteria set by Bank Windhoek, stating that SME customers must have an existing relationship with the bank through lending or transactional banking. Additionally, they should be registered business entities with the Business and Intellectual Property Authority (BIPA), including sole proprietorships, and have an annual turnover not exceeding sixty million Namibia dollars.
Koch further noted that applicants should not have previously participated in or held any existing SME Economic Recovery Loan with Bank Windhoek or any other financial institution.
The economic slowdown experienced since 2016 has had a severe impact on businesses, particularly SMEs. The government initiated this scheme to provide assistance during challenging financial situations.
SMEs can apply for the loan scheme by visiting any Bank Windhoek branch or contacting the Bank’s Customer Contact Centre at Tel: +264 61 299 1200.
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