The Young Entrepreneurs product and service offering is a package designed to assist young entrepreneurs with a means to access various financial products and services from the Bank. A young entrepreneur is any person carrying on business or intending to start a business falling within the age group of 21 to 35 years.
- Those with established businesses and,
- Those with only innovative ideas in need of start-up capital
To qualify a young entrepreneur must fulfil the following:
- The customer must open/have a business account (Step UP Entrepreneur Account).
- The business must be the main source of income.
- Average monthly account turnover must not exceed MK8.4 million
Product and Service Offering
The eligible young entrepreneurs shall have access to the following package:
- Transactional account
- Credit Offering
- Business management workshops
- Digital Channel services
Product Attributes/ Features
- Transactional Account
- Monthly service fee will be 50% of that of a normal SME account.
- Cheque book fee will be 50% of the normal tariff.
- BankNet360 at a monthly fee of 50% of normal fees
- Mo626 Digital+ at a monthly fee of 50% of normal fees
For qualifying customers, existing business accounts will be converted into the Step-Up Entrepreneur Account
- Working Capital Finance
- Clean short-term loans to entrepreneurs with a limit of MK5 million.
- Maximum repayment period of 2Years.
- Order/ Invoice based Financing.
- Access to order financing for orders of up to MK10, 000,000.00.
- Guarantees & Bonds
- Unsecured bid bonds, Advance Payment bond and Performance Bond of up to MK5, 000,000.00 per customer per transaction.
- Maximum tenure of 90 days.
- Credit Card.
- Limit of MK1,000,000 per customer only to cater for travel and e-payments requirements.
- Repayment ratio of 50%
- Arrangement fees shall be 1% of the amount of the facility being availed.
- Appraisal and arrangement fees as per applicable SME bank’s tariff.
- Interest rate shall be 7.1% above the prevailing reference Rate.
Young Entrepreneurs with innovative ideas
- Innovative bankable business idea that is selected through an innovation symposium organized by the Bank.
- Winning ideas to access Start-up capital finance as part of the project development financing, upon meeting qualification criteria.
- All terms and conditions shall apply
Note: all the credit offering will be accessed by young entrepreneurs without requirement of any collateral