Nedbank is the first commercial bank to commit to offering small businesses loans of less than R250000 that are underwritten by government's Khula Credit Indemnity Agreement programme. Support from big banks for government's Khula scheme has been disappointing so far. The banks have been hesitant to issue loans underwritten by the state because they are dubious of getting the government to repay loans of entrepreneurs who fail. This decision by Nedbank should pave the way for other commercial banks to move in the same direction. - Staff Reporter

Nedbank is the first commercial bank to commit to offering small businesses loans of less than R250000 that are underwritten by government's Khula Credit Indemnity Agreement programme. Support from big banks for government's Khula scheme has been disappointing so far. The banks have been hesitant to issue loans underwritten by the state because they are dubious of getting the government to repay loans of entrepreneurs who fail. This decision by Nedbank should pave the way for other commercial banks to move in the same direction. - Staff Reporter