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SME Economic Recovery Loan

What is the Bank Windhoek SME Economic Recovery Loan Scheme? 

The SME Economic Recovery Loan Scheme is a partnership initiative between the Government of Namibia and several local banking institutions, including Bank Windhoek and the Bank of Namibia. This Scheme is created to inject additional funds into solvent small and medium-sized enterprises (SMEs) to increase business productivity, stimulate economic growth and job creation.

Through this Scheme, Bank Windhoek will extend loans to qualifying SMEs at the Prime Lending Rate less 0.5%. The obligation to pay interest and capital on these loans will be deferred by 6 (six) months from the first drawdown date.

Why was this loan scheme created? 

As a result of the economic slowdown that started in 2016, the Government and its financial partners have introduced this Scheme, providing additional funding to SMEs and enabling the businesses to continue paying their operational expenses and maintaining financial stability in Namibia.

How do businesses qualify for the Bank Windhoek SME Economic Recovery Loan Scheme? 

For your business to qualify for this Loan Scheme, it should meet the following criteria: 

  • The SME must have a relationship (an account) with Bank Windhoek.

  • Be a registered business entity with BIPA (including a sole proprietorship) or registered as per regulatory requirements.  

  • Professional vocations (i.e., advocates, doctors, etc.) will qualify for the Loan Scheme if registered with BIPA and NamRa. 

  • The business's annual turnover should not exceed N$60,000,000.00 (sixty million Namibian dollars). 

  • The business must not have previously received the Covid-19 Government Relief Loan or have an active SME Economic Recovery Loan with Bank Windhoek or any other financial institution. 

  • Provide financial statements or 12 months of Management Accounts.

  • Be solvent and able to demonstrate solvency.

  • Be registered with the Namibia Revenue Agency (NamRa), tax compliant, should be able to submit a good standing tax certificate and statement of a​ccount issued by NamRa to that effect. (Where the business is not compliant, the bank will, during the credit assessment process, review and verify the authenticity of the payment arrangement with NamRa.)

  • Before participating in the Loan Scheme, eligible SMEs with tax payments arrears must engage NamRa to establish a settlement agreement for their outstanding liabilities. The restrictions on loan proceeds have been relaxed, and a portion of the recovery loan amount can be used to fulfil payment arrangements with NamRa.  

  • The business needs to demonstrate that it can afford the loan repayments. 

  • Provide collateral security and suretyships, where required.


How much can a business borrow?

Businesses can borrow a minimum amount of N$50,000 thousand to a maximum of N$10 million. The amount should be based on 3 (three) months of the business working capital as per cash flow forecast.

How will the bank payout the loan amount?

  • The bank will pay an amount equivalent to 3 (three) months of operating expenses to the business in three instalments over three months. 

  • The bank will pay out the loan amount related to the business's NamRa payment obligations directly to NamRa.

What are the repayment terms? 

Features of the Loan Scheme include: 

  • Loan repayment term: 60 (sixty) months. 

  • The client is not required to make any interest or capital repayments on the loan during the first six months, and after six months, loan repayments equating to 54 (fifty-four) will be scheduled.

  • The interest rate offered at the prevailing Prime Rate less 0.5%. 

  • Fees: standard loan administration fee applies. 

  • Early settlement: an eligible client can settle the outstanding balance on their SME Economic Recovery Loan any time before the maturity without penalty. 


How can your business utilise these funds? 

  • As payments for operational expenses and to retain employees.  

  • To cover short-term expenses critical to continue operations, as indicated in the cash flow projections submitted with the application.  

  • To pay for short-term (3 months) working capital requirements, which include stock purchases and payments to short-term trade and related creditors.

Suppose an eligible business breaches the Economic Recovery Loan terms and uses the funds for non-disclosed activities. In that case, further payments will be withdrawn, and the business will be required to pay the outstanding amount immediately.  

How many times can a business apply for an SME Economic Recovery Loan? 

A client can only apply once and only with one banking institution.

If a business has participated in the Covid-19 SME Loan Scheme, can it also participate in the SME Economic Recovery Loan Scheme? 

No. The SME Economic Recovery Loan Scheme is a progressive initiative and a continuation of the Covid-19 SME Loan Scheme, part of the government loan assistance program. A business can only participate once in this assistance program.  

Can a business with Bank Windhoek loan facilities (i.e. overdraft or commercial) still apply for the SME Economic Recover Loan? 

Yes. Businesses with an existing loan facility with Bank Windhoek qualify to apply for an SME Economic Recovery Loan Scheme if they have not received a Covid-relief Government Loan. 

Will a business that had previously postponed payment qualify for an SME Economic Recovery Loan Facility? 

Yes. Provided that previous obligations were honoured and met. Businesses listed on ITC will not qualify for an SME Economic Recovery Loan facility. 

Does Bank Windhoek offer Life Cover or Credit Life Insurance to businesses applying for an SME Economic Recovery Loan? 

We can offer life insurance to recipient businesses to cover unforeseen risks. Your business can opt to have the insurance included as part of the credit facility issued.

What is the turnaround time for an SME Economic Recovery Loan application approval? 

This application will follow the Bank Windhoek credit evaluation process and standard turnaround times of 7 working days apply commencing from the date a complete application is received. 

What happens with the SME Economic Recovery Loan Scheme when the business owner or one of the business owners passes away? 

The normal Bank Windhoek estate processes will apply. Click here to learn more.

Can a foreign business qualify for an SME Economic Recover Loan Scheme Facility? 

A foreign business can qualify if they meet the bank's standard foreign business requirements and have a relationship with Bank Windhoek. 

How does the Bank Windhoek SME Economic Recovery Loan scheme differ from the Credit Guarantee Scheme? 

The Bank Windhoek SME Economic Recovery Loan Scheme complements other SME and entrepreneurship facilities like the Credit Guarantee Scheme. The Credit Guarantee Scheme was introduced to ensure that SMEs with bankable business plans, who lack collateral, can access funding from financial institutions. The Credit Guarantee Scheme provides a collateral cover of up to 60% for bankable SMEs. The facility is designed to share the risk between the Scheme, participating financial institutions, and the borrowers. The Development Bank of Namibia administers the Credit Guarantee Scheme.

Whom should I contact for inquiries about the Bank Windhoek SME Economic Recovery Loan Scheme?

Don't hesitate to get in touch with the Business Banking i-Lounge for assistance regarding applications at Tel: +264 61 299 1666 or at email address:

How can my business apply for the Bank Windhoek SME Economic Recovery Loan Scheme? 

Apply ​now.  Alternatively, visit your nearest branch.   

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