By Staff Reporter
WINDHOEK, April 24 — The Development Bank of Namibia (DBN) is expanding its offerings with participation in the Bank of Namibia (BoN) SME Economic Recovery Loans scheme. The new loan scheme, in addition to the KfW Bankengruppe (KfW) scheme, brings the number of schemes offered by the DBN to two.
Jerome Mutumba, Head of Marketing and Corporate Communication at DBN, highlighted the differences between the schemes. The BoN scheme has a longer duration of 7 years and an interest rate that floats at prime -0.5%. The KfW scheme has a short duration, with repayment concluding by 31 October 2025, and offers a fixed interest rate of 5.925%, with the first 12 months interest-free.
To qualify for participation, businesses should be clear on the time they require to repay the loan amount. If loans are not repaid within the specified periods, they will be restructured to adhere to DBN’s terms of lending.
Potential borrowers can compare the schemes on the Bank’s webpage, or visit one of its branches in Windhoek, Ongwediva, Rundu, or Walvis Bay. However, the decision to finance applicants is solely at the discretion of the Bank, subject to established standards and requirements in the application form.
The BoN scheme will be available solely to existing DBN borrowers, and each applicant should speak to their individual portfolio manager. The KfW scheme is available to new borrowers with an existing business track record.
Mutumba urged enterprises to assess their need for relief schemes carefully. While these schemes offer support to businesses, they also place additional debt obligations on borrowers. Therefore, it is crucial for borrowers to evaluate the benefit and returns of participation, and use the schemes to recover and grow.
The DBN aims to support larger enterprises and SMEs with a clear development impact. Beneficiaries of the loans must ensure that they further their goals and prolong their sustainability in the medium to long term, Mutumba concluded.
– Namibia Daily News