If you have a business and it does not have assets to put up as collateral for a bank loan then you dont have to worry because Standard Bank and the government’s small business finance agency, Khula, offers them a credit guarantee scheme.
This scheme is an indemnity to Standard Bank just in case should the Business fail to pay the Khula Loan, 50% to 90% of the bank loan can be indemnified under the Khula scheme. The maximum amount that can be approved under the scheme is R3 million.
How to qualify for Khula-supported loan?
To qualify for a Khula Guaranteed Loan you will need to contribute to your business and this may be as much as 10% of the amount you want to borrow. This contribution can be either cash or equipment that will be used in your intended business.