Credit schemes that bring finance closer to home.
Loan facilities set up with Government agencies, Provincial Governments and District Development Authorities to reach people the commercial banks can’t.
Partnerships that fund local business.
Credit schemes are loan facilities established by agreement between NDB and a sponsor, such as a Government agency, a Provincial Government or a District Development Authority (DDA) chaired by the local Member of Parliament.
The sponsor provides the seed capital or security deposit, and NDB provides the lending.
Why they exist
Credit schemes provide appropriate, easily accessible loans to villagers and people in the informal sector, to start or improve small income-generating businesses in rural and urban areas of the target district or industry. These are people who often can’t borrow from commercial banks because of:
- Lack of previous experience in the formal business sector
- Lack of flexibility to respond to risks
- Lack of effective extension support services
Where the money comes from
Funds come from sponsors: local Members of Parliament, district grants, grants from the National and Provincial Governments, and grants from other Government or donor agencies. Seed capital of K500,000 to K2 million is needed to set up a scheme, with annual top-up funding from the sponsor.
How a scheme is run
Every credit scheme is guided by a Memorandum of Agreement (MOA). Apart from any exclusions in the MOA, NDB’s normal lending requirements apply.
Applications are lodged through a fund manager employed by the District or Provincial Government, who convenes a screening committee to recommend or decline applications. The Bank assesses endorsed applications against its lending guidelines and makes the final decision. A standard administration fee is taken from the fund deposit to run the scheme.
Why it works for rural borrowers
NDB takes on risks that other banks and microfinance institutions generally can’t, with a fixed interest rate of 7.5%, a standard application fee, sweat equity and flexible repayments tailored to rural projects.
Fisheries Credit Loans at 6.5%.
For individual fish farmers, co-operatives, associations and small fishing businesses that want to start or expand.
- Turn local fishing into an income-generating activity
- Support downstream processing
- Professional training with the National Fisheries Authority
| Feature | Small Enterprise Credit-Line | Business Credit-Line |
|---|---|---|
| Loan amount | K5,000 – K50,000 | K50,000 – K1,000,000 |
| Loan term | 3 years | Up to 5 years |
| Interest rate | 6.5% | 6.5% |
| Equity | 30% (historic or fresh) | 30% (historic or fresh) |
| Security | Registered Bill of Sale and NFA guarantee | Registered Bill of Sale and NFA guarantee |
How to apply: get a formal NFA endorsement of your loan, then visit your nearest NDB branch and consult our lending officers.
Bank fees are as per NDB’s charges. Repayments are monthly and can vary depending on cash flow.
View the full flyerTourism Expansion Loans at 6.5%.
Transform your tourism business with finance and recognition from TPA and NDB. Three packages are available, all with the same features:
- Tourism Start-up: for new tourism businesses
- Successfully Managed SMEs: for established tourism businesses
- Up-scale SMEs: for tourism businesses ready to grow
How to apply: get a formal TPA endorsement of your loan, then visit your nearest NDB branch and talk to a loan officer.
Bank fees are as per NDB’s charges and apply to all three packages.
View the full flyer| Loan amount | K5,000 – K100,000 |
|---|---|
| Loan term | 1 – 5 years |
| Interest rate | 6.5% |
| Equity | 30% of loan amount |
| Repayments | Monthly (can vary with cash flow) |
| Security | Negotiable, as for any NDB commercial loan |
Explore other loans.
Visit your nearest NDB branch.
Our loan officers will help you find the right loan and guide you through your application.