The Partial Credit Guarantee (PCG) Scheme within LNDC started operations in 2011 and has leveraged M34 million worth of lending to SMEs since its inception. The Board of Directors approved the restructuring PCGS in April 2020 to response to effects of Covid-19 on the economy and to improve its impact and reach. The newly approved scheme can be summarized as per Table below. It expands guarantee cover from the previous 50% to 75% of the loan; waived all fees; covers all sectors and business activities except normal negative list activities; and increase maximum guarantee amount from M5 million to M8 million.
Type of Loan Facilities Supported |
Term loans (short, medium and long term); Working Capital; Leasing finance |
Description |
Up to 75% cover. |
Guarantee Amount |
M8m maximum; M200,000 lower limit. |
Loan Maturity |
60 months |
Repayment frequency |
Monthly |
Pricing |
Application Fee: WAIVED. Guarantee Fees: WAIVED. |
Collateral type |
The Lender is free to accept any collateral including assets to be purchased with the loan proceeds |
Collateral value |
Promoters must provide at least 7.5% collateral (or as may be required by the bank). |
Application Procedure |
Loan applications needing the guarantee submitted directly to commercial banks. LNDC partner banks are FNB,Lesotho Post Bank Nedbank and Standard Lesotho Bank. Applicants should not submit to the LNDC. |
Eligible Projects |
All enterprises operating in all sectors of the economy. Excluded activities obtain as per current policy. |
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...
Lesotho National Development Corporation
Block A, Development House, Kingsway Street
Maseru, Lesotho, 100
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