Financing
Khula Loans
Do you have a great idea for a small to medium sized business, but don’t have enough to offer the bank in order to obtain a loan? Want to buy into an existing business, but lack the capital to do so? Absa, in conjunction with Khula Credit Guarantee, can help you achieve your dreams.
Through the Khula Credit Guarantee Scheme, you will be able to obtain loans of up to R350 000 and Khula will back you for up to 90% of the loan. All you need to do is provide a reasonable business plan and meet certain requirements. Absa will present your case to Khula Credit Guarantee on your behalf and will secure the necessary guarantee before approving the loan.
With a Khula Loan, your risk is reduced considerably as you will only be responsible for repaying the portion of the loan for which you have security for.
If you are a black entrepreneur and require a loan larger than R350 000, you may be interested in the Small and Medium Enterprise Fund.
A Khula Loan could be the right choice if you:
- Are looking to start your own small business, expand an existing business or buy into another business
- Lack the sufficient security required to obtain a normal loan or credit
- Have the necessary skills and/or experience in the business area you wish to take advantage of
- Have a well-researched business plan, and would like to be mentored in how to obtain business finance
- Need a minimum loan of R10 000 or a maximum loan of R350 000
- Are a South African citizen and intend to only do business within South Africa
- Are able to put forward a contribution that is at least 2.5% of the loaned amount
Did You Know?
- A loan of up to R350 000, which will be linked to the prime interest rate plus a certain percentage, depending on the amount loaned
- You will also have to pay an annual indemnity fee - up to 3.5% of the guaranteed amount, depending on the amount guaranteed
- 1/5th of the loan must be spent on equipment and stock that will help you supply services or generate more products, while the remainder of the loan can be used to acquire fixed assets, such as property and business premises
- An Absa Small Business Cheque Account
Call us on
0860 040 302
