Youth Enterprise Revolving Fund (YERF) Loan 2022 – The Youth Enterprise Revolving Fund (YERF) is a business support mechanism established for youth aimed at contributing to the reduction of youth unemployment in Eswatini.
The YERF will be disbursing funds through an intermediary Finance Institution and thus has developed a project funding value chain that clarifies the roles and responsibilities between YERF and the intermediary.
The YERF is making a call for loan applications from the Eswatini Youth (18-35 years) on the 1st October 2022 and shall be closed on the 29th October 2022.
Contents
The Application Process For Eswatini Youth Enterprise Revolving Fund Loan 2022
Where to get application forms?
Forms are available on the YERF website as well as distributed to among other stakeholders, Tinkhundla centres, and Eswatini National Youth Council, Junior Achievement, ENACTUS, IDCE, SEDCO, etc
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Filling of Application forms
The applicant fills in the forms providing information which shall among others include:
- Information about the applicant(s)
- The form is taken to Umphakatsi or Zone Leader for vetting where they append their signature and stamp the form.
- The form is taken for further vetting at inkhundla through signature and stamp
- The form with all the attachments is submitted to The Fund offices, ENYC Offices or left at Inkhundla centre where it shall be collected
- Applicants should ensure that before submission, attachments are included as guided in the requirements checklist found in the last page of the application form
Attachments
The following attachments shall be necessary to accompany the submission of the application form:
- Certified copy of ID
- Certified copy of certificate of incorporation (for a registered company)
- Certified copy of form J
- Certified copy of Memorandum & Articles of Association
- Premises/ Land right (Chief’s Letter, Title Deed, Lease Agreement, etc)
- Market Contract/ Letter of intent as proof of market
- Trading licences (where applicable)
- The applications received shall not be interpreted as deserving for funding
Only relevant requirements shall be attached by the applicants, i.e. not all the above requirements will be applicable to all applications.
Loan Appraisal Process
The appraisal process shall be as follows:
Stage 1: YERF pre-screening to ensure, compliance, eligibility, and feasibility
UpSteve 2: Qualifying applications are referred to the intermediary for viability
Viable applications are recommended to YERF by the intermediary, where the Board of Directors shall approve projects deserving funding.
Stage 4: Feedback is sent to applicants. Those that are not successful shall be given reasons for non-approval and they will be assisted to improve them and resubmit in the next cycle.
The fund strives to take approximately one (1) month in the processing of the loan application.
Eswatini Youth Enterprise Revolving Fund Loan 2022 Application Funding
The disbursement of funds shall follow the process below:
- All successful applicants must undergo and intense business training
- The successful applicants shall proceed to sign loan agreements
- All applicants will be expected to open bank accounts for their business
- A mentor/advisor shall be assigned to the applicants before disbursement of funds. The mentor shall also be co-signatories to procurement or expenditure requisitions
- Disbursements shall be made direct to suppliers as much as possible
Lending Maximum Limits:
Sole traders/Individuals – E50,000.00
Companies – E100,000.00
Cooperatives – E150,000.00
Terms to be provided:
a) Seasonal term – 12 Months
b) Short term – 24 Months
c) Medium-term – 36 Months
Interest rates
The fund will endeavour to price loans below the market rate due to developmental mandates.
The interest rate charge is prime plus 2%
Deferred Loans
YERF shall engage applicants with deferred loans with a purpose to assist them to improve and re-submit in the subsequent cycles.
Loan Repayments
All loans to be granted shall be repaid in full with interest.
Loans shall be repaid with the Intermediary through bank accounts.
The onus is upon all fund beneficiaries to repay their loans within the agreed
terms.
Conclusion:
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