What is the LNDC Partial Credit Guarantee Scheme?

The LNDC Partial Credit Guarantee Scheme was established to give access to finance to people who wish to start or expand medium to large size businesses but do not have sufficient collateral / security to support facilities provided by participating banks. The scheme provides 50% guarantee on loans worth M5 million and below.

Who qualifies?

  • Business activity must be situated in Lesotho.
  • Business must be conducted with a profit motive and be economically viable.
  • The borrower must be able to repay the bank facility.
  • Individual or person holding a controlling interest must be a citizen of Lesotho.
  • Borrower with proven and sufficient entrepreneurship, knowledge, skills and experience directly related to the nature of the business.
  • The promoter of the project must provide own contribution towards a start-up or expansion of the business.

Sectors Supported by the Scheme

All forms of business considered legal by law and are approved for financing by participating commercial banks, however, investments in these sectors are particularly encouraged;

Agro–processing, Mining (except diamond mining) and quarrying, Minerals beneficiation (e.g. mineral water bottling), Tourism (infrastructure), Information technology/Consumer electronics, Franchising, Construction and Manufacturing.

How do I access finance?

An owner or potential owner of a business can approach any of the following retail financial institutions:

Participating Financial Institutions

  • First National Bank Ltd
  • NEDBANK Lesotho
  • Standard Lesotho Bank
  • Lesotho PostBank

A business promoter may also choose to approach the LNDC for assistance with a business plan development and or advice on which institution supports the scheme. The financial institution will assess the business plan and facilitate application in terms of its lending criteria.

Once the application has been approved, the financial institution will approach LNDC for indemnity cover and a mentor may be appointed to help with implementation of the business plan, setting up operational systems and general business management. The financial institution manages the facility and collects payments for the duration of the facility. The full payment of the facility remains the responsibility of the applicant.

About LNDC

The Lesotho National Development Corporation (LNDC) is the main parastatal of the Government of Lesotho charged with the implementation of the country’s industrial development policies.

“The mandate of the Corporation is to initiate, promote and facilitate the development of manufacturing and processing industries, mining and commerce in a manner calculated to raise the level of income and employment in Lesotho.”  more...

Contact us

Lesotho National Development Corporation
Block A, Development House, Kingsway Street
Maseru, Lesotho, 100

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