Skills-based finance for young artisans

Limited youth skills finance pilot programme

 

Applications will be accepted from 2 December 2019

 

To support youth employment, the Development Bank of Namibia skills-based finance for youth pilot programme will provide finance for youth artisans.

Youth artisans with NQF3 qualifications and up are invited to apply under this pilot programme, either as start-ups or for existing enterprises. 

 

 

Application Guide

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Application Form

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The duration of the pilot programme will be at the discretion of DBN, however, recipients of finance will be financed for the duration of - and subject to - the agreement between the recipient and DBN.

 

Fields that qualify for finance may include:

  • Boilermaking, plating and / or welding
  • Carpentry and / or joinery
  • Electrical
  • Fitting, turning and / or machining
  • Instrumentation
  • Petrol and / or diesel mechanics
  • Plumbing
  • Refrigeration and / or air-conditioning
  • Sheet metal work and / or metal fabrication

 

Other forms of enterprises not related to technical and vocational skills may be financed under the DBN facility for SMEs. 

 

To qualify for skills-based finance for youth artisans, applicants must:

  • Be aged 35 or younger *
  • Have an NQF3 qualification or higher 
  • Have 6 months’ relevant, practical artisan experience after obtaining the NQF3 qualification
  • Upon approval, be prepared to attend business training and / or mentorship as directed by DBN
  • Develop a business plan and a cash flow projection
  • Have registered a business (CC or sole proprietorship)
  • Be prepared to obtain personal and business insurance, financed as part of the loan

 

Finance and use of finance

The lowest loan amount will be N$50,000 and the highest will be N$1 million. Finance will be approved on the basis of a business plan and cash flow projection.

 

Funds can be used for:

  • Equipment
  • Operating capital
  • Vehicles for business use
  • Mandatory life and short-term insurance to be ceded to DBN

 

Collateral

Subject to acceptance of DBN terms and conditions collateral and equity requirements may be relaxed. Each application will be treated on individual merit and at the sole discretion of DBN.

 

Business training and / or mentorship

To ensure sustainability, recipients may be required to undergo business training and / or mentorship determined by the Bank.

 

Application process

  1. Please complete the application form.
  2. All supporting documents must be provided. Please refer to the application for a checklist, and ask DBN for guidance on additional documents.
  3. All pages of copies of documents must be certified. Certification by a DBN Commissioner of Oaths is preferred where possible.
  4. On acceptance of a complete application, an acknowledgment letter will be issued with a reference number.
  5. Applicants may be requested to submit additional information, and a return period will be specified. If information is not provided in the return period the application will be closed.
  6. An applicant may be requested to make a formal presentation as part of the appraisal process.
  7.  DBN will review the application and will inform the applicant of the decision. Approval, decline, or referral of an application is entirely at the discretion of DBN.

 

* Applicants up to the age of 40 may in some instances receive exemption and qualify for this finance at the sole discretion of DBN.

 

Frequently asked questions

 

I am older than 35. How can I get finance?

When can I apply for skills-based youth finance?

What is the minimum amount I can borrow?

What if I need less?

What is the maximum amount I can borrow?

What if I need more?

What if I am not an artisan or professional?

How can I qualify for youth artisan finance?
What can I use youth artisan finance for?

Do I need a business plan?

What if I don’t have any collateral?

Do I have to register a company?

What about the training?

I am older than 35. How can I get finance?

If you are an artisan or professional, you may qualify. 20% of available finance is set aside for people aged between 36 and 40. Each application will be handled on a case-by-case basis, and at the sole discretion of DBN.

 

When can I apply for skills-based youth finance?

We will begin accepting applications from 2 December 2019.

 

What is the minimum amount I can borrow?

N$50,000.

 

What if I need less?

You should apply to Postfin at Nampost or contact your local bank.

 

What is the maximum amount I can borrow?

N$1 million for the skills-based product for the youth

 

What if I need more?

You can apply for an SME loan.

 

What if I am not an artisan or professional?

You can apply for an SME loan.

 

How can I qualify for youth artisan finance?

You will need an NQF3 qualification or higher. You must use the finance to start a company in your field of artisanship.

 

What sort of artisans?

Fields of technical and vocational skills may include, among others

  • Boilermaking, plating and / or welding
  • Carpentry and / or joinery
  • Electrical
  • Fitting, turning and / or machining
  • Instrumentation
  • Petrol and / or diesel mechanics
  • Plumbing
  • Refrigeration and / or air-conditioning
  • Sheet metal work and / or metal fabrication

 

What can I use youth artisan finance for?

You can use it for:

  • A business vehicle
  • Tools
  • Stock (for your artisan business)
  • Operating capital

If you want to use it for a business vehicle, tools or stock, please get quotes.

 

Do I need a business plan?

Yes. You will need to describe the business (e.g. artisan / professional enterprise, field of artisanship/profession, etc. You will need to calculate your projected monthly earnings for your company and then deduct your salary, employee salaries, tax, and operating expenses. You will need to make a projection for 36 months. Please do so on an Excel sheet, listing all the items, as well as how much you will be able to pay monthly on the loan.

 

What if I don’t have any collateral?

You can use the following as collateral if your application is successful

  • A vehicle you finance under the scheme (it will also have to be insured)
  • Life insurance which you will need to take out and cede to the Bank

 

Do I have to register a company?

Yes. Register a CC or a sole proprietorship. You will also have to register for company tax, income tax, and social security. 

 

What about the training?

DBN will require you to attend business training. This will help you make your company successful.