The other scheme the bank offers is the KfW (KfW) Bankengruppe scheme.
In a statement released yesterday, Development Bank of Namibia (DBN) head of marketing and corporate communication Jerome Mutumba said the differences between the schemes is that the central bank’s scheme is of a duration of seven years, with the interest rate floating at prime -0,5%.
“On the other hand, the KfW scheme is of short duration, with repayment to conclude by 31 October 2025. The KfW scheme offers a fixed interest rate of 5,925% with the first 12 months interest-free,” he said.
Mutumba said businesses that qualify to participate in the scheme should be clear on the time they would require to repay the loan.
“In the event loans are not being repaid in the period specified in terms of the respective schemes, the loans will be restructured to adhere to DBN’s terms of lending,” he added.
He referred potential borrowers to the bank’s webpage, www.dbn.com.na/recovery, for a detailed comparison of the schemes, and added that information will be available at the bank’s branches in Windhoek and at Ongwediva, Rundu and Walvis Bay.
Mutumba said the decision to finance applicants was at the discretion of the bank, and subject to standards and requirements established in the application form for finance available at the bank’s branches or on its website.
He said the BON scheme will be available to existing DBN borrowers and each applicant for the scheme should speak to their individual portfolio manager.
On the other hand, he said the KfW scheme is available to new borrowers with an existing business track record.
Mutumba urged enterprises to interrogate their need for the relief schemes as the schemes place additional debt obligations on borrowers, which makes it important for each borrower to assess the benefit of and returns to participation.
It is vital that enterprises be able to use the schemes to recover and grow, he added.
The bank was established to support larger enterprises and SMEs with clear development impact, Mutumba said
“The implementation of these schemes requires beneficiaries of the loans to ensure that they further their goals and prolong their sustainability in the medium to long term,” he said.
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