The Erongo Development Foundation (EDF) through the implementation of the Erongo Micro Credit Scheme offers micro loans to micro enterprises ranging from N$1,000 to N$15,000.
The stakeholders of the EDF Micro Credit Programme are the EDF trustees, who manage the selection of candidates as well as oversee the project at the monthly EDF Trustee meeting; the EDF also provides the collateral required by the bank. Bank Windhoek is another stakeholder that provides the financing and feedback to the EDF on the success rate of the payback of loans.
- With legal entity
- Without legal entity
- Applicant must be a Namibian citizen or a permanent resident
- Applicant must be a resident in the Erongo Region
- Business must be known within the boundaries of the constituency
- Applicants must be owner and manager of the business
- Application should not be in receipt of verifiable allowance greater than N$ 2,000
- Applicants must provide at least 10% own contribution, as security. Security realization can be stretched over a maximum period of 6 months
- The applicants must not have multiple liabilities (other loans) for the business
- The applicants must have been in business for at least 12 months
- Minimum business age will be 21 and maximum 75.
- Applicants must be capable of running their businesses
- At least 60% of participants per constituency should be women and youth
- Socially undesirable ventures will not be acceptable (shebeens, gambling houses, brothels)
- Defaulters to the current credit scheme are excluded from participation. However, if 50% of their liabilities are settled, they can be reconsidered
- Loan amounts will range between N$ 1,000 – N$ 15,000
- Submit a written application to respective constituency offices
- Applications are reviewed by a committee, upon which applications are then either approved or returned to the constituency offices for the applicants to still have a second opportunity to attach or amend any of the information that the committee marked lacking, missing or that need more clarification
- A deadline is set, applications are reviewed again, then there is a selection of applicants to be visited per constituency
- The visit entails a one-on-one interview
- After this the constituency will be informed which candidates are approved as well as the candidates themselves
After the selection process is over, dates for the compulsory training are set as well as a date for the money handing over ceremony, usually immediately after the training.
There will also be opportunities for all selected candidates to engage with each other.
After that there are monthly updates with respective constituency councilors who are tasked with following up with applicants loan repayments. Also EDF compiles monthly reports to monitor applicants repayment and growth.
If need arises for specific mentoring this can be provided on a case to case decision. The EDF will continuously strive to support the business and help it grow.
In case general literacy is an issue, the constituency will try to address this as well.