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.
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
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.