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SME- Micro Small & Medium Enterprises Banking

A business entity can be deemed to be at micro level if it has less then 6 employees and generate up to p100, 000 annual turn over.
Once such a business has had its staff compliment growing beyond 6 , employees but less then 25 and able to generating between P100,001 and P150,000 it would then qualify to be deemed to have reached a status where it deserve the label small enterprise
Business enterprises that has between 25 and 100 employees generating Pula 1500,001 to P5, 000,000 as turn over is classified as medium enterprise.

To meet the working capital requirement of medium sized Business Firms and Corporate in the republic of Botswana

Type of facility  
A credit line for a availment as Overdraft/Loan or L/C or Guarantee excluding standby L/C or Guarantee for availment of credit from other financial institution.

Maximum Amount
P2, 500,000 (Limit will be decided on merits of each cases)


  • On demand, subject to annual review for working capital limits.
  • Not exceeding 60 months subject to annual review.

15% to 35% depending upon value of other collateral security

Rate of Interest
Minimum at Prime lending rate and maximum depending on the credit rating of the applicant. Payable at monthly rests.


  • Loan agreement signed by the borrower
  • Personal Guarantee of directors/partners/proprietors
  • Charges on securities viz stock, book debts, immovable properties etc.
  • Offshore Bank Guarantee


  • Stock to be insured against exposed risks, for their full value and the insurance policy to be ceded in bank’s favour and charge of cessation noted in the books of the Insurance Company.

Other Covenants

  • The assessment of Working Capital requirement will be done on the basis of Audited/Estimated/Projected accounts and the annual sales figures. Normal Trade cycle, Inventory, receivable levels in the line of activity will be the basis for arriving at required level of finance.

  • Reduction in interest Rates may be considered depending upon the availability of additional collaterals such as first mortgage on immovable property, lien on deposits with the Bank etc.

Where the entire working capital requirements of a customer are catered to by our Bank, the borrower should undertake to route all his business transactions through our Bank. The credit turnover in such accounts must be closely related to the gross sale of the company for any given period of time.