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Botswana - Obtain CEDA Credit Guarantees Scheme (CCGS)

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ProcedureEdit

Apply In-Person

  1. The CEDA Credit Guarantees Scheme (CCGS) is a Government initiative through the Citizen Entrepreneurial Development Agency (CEDA) with the assistances designated commercial banks that participate in the scheme, which aims offer financial assists to individuals and citizens owned businesses that intend to borrow from commercial banks, but do not possess the level of security or collateral required by the banks.CEDA contact details.
  2. Interested applicants who bank with the following respective commercial banks mentioned below should visit their offices and express their interest in assessing the loan at the customer service desks.
    • Barclays Bank Botswana
    • Standard Chartered Bank Botswana
    • Bank of Baroda
    • Stanbic Bank Botswana
    • First National Bank Botswana
    • Bank Gaborone
    • BancABC
    • National Development Bank
  3. Collect the applicable application form and the required document (checklist) from the service desk or the CCGS section desk.
  4. The applicant will be required to submit the certified copies of the supporting documents, in addition to the duly completed application form in all respect to the bank offices. Any omission of these documents will render the application process incomplete.
  5. The Banks will first consider the Borrower’s available assets as security, and if the security offered by the Borrower is found to be inadequate/short, then the Bank will make an application to CEDA on behalf of the applicant requesting the CEDA for cover under the CCGS.
  6. The CEDA will only approve to finance the project if it’s satisfied that it will be viable, sustainable, and adding value to the economy.
  7. Notice of the decision (Approval, Deferral, or Rejection) for the Loan will be communicated to the client via mail, phone, or preferable mode.
  8. If the loan is approved, the applicant will be required to visit the bank office, where the application was lodged and produce a proof of identity document and the approval letter to be validated by the authorized official, the applicant/client will then be required to sign a loan agreement contract with the bank.
  9. The Access of the loan by the applicant once approved, is normally subjected to pre-disbursement conditions as the Bank deems fit, once all these conditions have been fulfilled, the loan can start disbursing in accordance with the implementation schedule agreed with the applicant (borrower).
Note:The loan term is negotiated and agreed upon between the bank and the borrower.


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Required DocumentsEdit

  • Valid identification document
  • The checklist provided by the bank


Office Locations & ContactsEdit

Citizen Entrepreneurial Development Agency (CEDA)
Headquarter Office

Gaborone Branch
Address: CEDA House, Prime Plaza Matante Road & Khama Crescent Extension CBD
Gaborone,
Botswana
Private Bag 00504, Gaborone
Tel: (+267) 3170895
Fax: (+267) 3170896

Molepolole Branch
Address: Plot 470 Main Road, Borakanelo Ward
Molepolole,
Botswana
P O Box 3271 Molepolole
Tel: (+267) 5920000
Fax: (+267) 5915318

Kanye Branch
Address: Plot 1264, Maswabi Complex, Sebonego Ward
Kanye,
Botswana
Private Bag 16 Kanye
Tel: (+267) 5440324
Fax: (+267) 5441109

Palapye Branch
Address: Plot 8717, Unit17, Riverview Mall along A1
Palapye,
Botswana
Private Bag 24
Tel: (+267) 4920279
Fax: (+267) 4920235

Francistown Branch
Address: Plot 323676, Unit 6, 7, 8 Donga, along Marang Road
Francistown,
Botswana
P O Box 1845 Francistown
Tel: (+267) 2412775
Fax: (+267) 2416045

Selibe Phikwe Branch
Address: Plot 6575 Khama Road, Private Bag 190 S/Phikwe
Selibe Phikwe,
Botswana
Tel: (+267) 2622377
Fax: (+267) 2622374

Maun Branch
Address: Plot 730 Tsheko Road, Mall Extension
Maun,
Botswana.
Private Bag 393 Maun
Tel: (+267) 6864169
Fax: (+267) 6864858

Hukuntsi Branch
Address: Plot 158, Unit 7, Macheng Mall
Hukuntsi,
Botswana
Private Bag 16 Kanye
Tel: (+267) 6510170
Fax: (+267) 6510185

Ghanzi Branch
Address: Chelford Complex, Plot 1299 Henry Jackie Road
Ghanzi,
Botswana.
P O Box 792 Ghanzi
Tel: (+267) 6597331
Fax: (+267) 6597595

Kasane Branch
Address: Plot 5085, Rural Admin Centre
Kasane,
Botswana
P O Box 63 Kasane
Tel: (+267) 6250183
Fax: (+267) 6250185

Letlhakane Branch
Address: Plot 10297, Mokgobelele Ward
Letlhakane,
Botswana
Private Bag 55 Letlhakane
Tel: (+267) 2976234
Fax: (+267) 2976523


EligibilityEdit

  • Individuals or companies SMME's (small, micro and medium enterprises) owned by citizens aged 18 or over either wishing to start a new business or wanting to expand on an already existing one.
  • The facilities considered under the CCGS range from P10, 000 to P4million.


FeesEdit

No application fee is charged.

WHAT IS THE COST TO THE BORROWER?GUARANTEE FEE

  • A guarantee fee of 1.5% (one and a half percent) on the loan amount is payable annually in advance by the Banks, who would then recover it from the Borrowers.


ARRANGEMENT / ADMINISTRATION FEE

  • The banks charge their borrowers an amount that they normally charge for their normal lending, i.e. Loans outside the CCGS.


INTEREST RATE

  • The banks charge a preferential interest rate not exceeding prime plus two percent.


ValidityEdit

The validity of the loan (payable duration) depends on the bank and the borrower's discretion.

Documents to UseEdit

Please attach documents that can be used by people. e.g. links


Sample DocumentsEdit

Please attach sample completed documents that would help other people.


Processing TimeEdit

Please explain processing time taken in obtaining the document/certificate.


Related VideosEdit

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.


InstructionsEdit

GUARANTEE COVER
CEDA provides a guarantee of 75% of the net loss incurred by the Banks as a result of their lending.

Required InformationEdit

  • Full name of the applicant /business
  • Contact details
  • Residential address details
  • Identity document details
  • Details of the business
  • Financial statement details
  • Declaration by the applicant


Need for the DocumentEdit

The CEDA Credit Guarantees Scheme (CCGS) is a Government initiative through the Citizen Entrepreneurial Development Agency (CEDA) with the assistances designated commercial banks which participate in the scheme which aims in assisting individuals and citizens owned businesses that intend to borrow from commercial banks but do not possess the level of security or collateral required by the banks.

Information which might helpEdit

WHAT HAPPENS IF THE BORROWER FAILS TO REPAY THE LOAN?

  • The bank realizes its security and takes the necessary action to recover the balance of the debt from the borrower. If this still leaves some balance, CEDA pays 75% of the net loss but legal action against the borrower may continue to recover the balance owed.


Other uses of the Document/CertificateEdit

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.


External LinksEdit


OthersEdit

More information which might help people.


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