Johannesburg - Standard Bank and Khula Enterprise on Monday announced they had signed a new credit indemnity agreement to make finance for small and medium-size enterprises in South Africa more accessible.
The Khula-Standard Bank partnership will assist entrepreneurs to gain access to much-needed funding for their businesses.
The agreement places strong emphasis on developmental imperatives and favours rural and peri-urban entrepreneurs.
Khula said there would also be an attempt to increase the lending patterns on loans of less than R250 000 to over 50 percent of the total indemnity book by 2010. Among other revised conditions of the agreement is the owner's contribution has been decreased and qualifying loan amounts increased.
"Khula is very proud of its renewed partnership with Standard Bank as this forms part of Khula's strategy of aligning its developmental objectives with those of its commercial partners. The signing of this agreement is not only a step in the right direction for Khula and Standard Bank, but it begins to paint a picture of a better future for the country's entrepreneurs, who are the beneficiaries of the credit indemnity product," said Khula Enterprise finance managing director Xola Sithole.
Sean Robertson, director of lending products at Standard Bank, said the bank believed the small business market played a critical role in the continued growth of the economy.
However for these enterprises to make a meaningful contribution to economic growth and skills development, they need tailored financial support.
Standard Bank and Khula have addressed this need, in part through the new Credit Indemnity Agreement, which we think will help foster the sustainability of start-up businesses. - I-Net Bridge