Do you want to learn about the Absa micro loan in South Africa? Then check out this short article.
This is a loan for small businesses to improve or enhance their business.
As an SME owner, you can benefit significantly from this loan by boosting your business.
We will first show you the requirement to qualify for this loan.
Requirements To Qualify For Micro Loan
Below are some of the requirements to qualify for the micro loan in South Africa:
- You should have a South African ID or passport
- You should be above 18 years
- The SME should be registered and operational for at least one year.
- The business should satisfy the terms and conditions set by Absa
- You are eligible for assessment of the company by the bank before you can get the loan
- Microenterprises can avail a maximum overall and cumulative number of facilities not exceeding R2 million
These are the primary requirements to qualify for the Absa micro loan in South Africa.
Absa Micro Loan
When you apply for the loan, all the processing fees are waived.
The loan applies to selected sectors and micro-enterprises.
Small business enterprises that meet the government criteria have access to microloans such as import loans, overdrafts, asset finance, and working capital.
The interest rate for this loan is +2%.
This is how the Absa microloan works in South Africa.
How To Use The Absa Micro Loan
The loan is generally meant to help small businesses to expand.
You can use the loan to rebuild, repair, enhance or improve your small business.
You can use the money as working capital in your business.
You can purchase machinery, furniture, and equipment for your home or business.
You can also use the cash to pay for supplies and inventories.
This loan can not pay existing debts or purchase real estate.
These are the uses of the Absa micro loan in South Africa.
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