Call for Proposals: IDC Credit Line Offering to Non-Bank Intermediaries

Eligibility Criteria

The following eligibility criteria are required to ensure that outputs are maximised and that the goals and objectives of the IDC are met. Successful applications should meet all of the following requirements and terms. If any are not met at the time of application, and the requisite documentation not supplied, the application will be rejected:

1. NBI must have the minimum operating infrastructure and systems to on-board applicants; loan management systems, as well as credit and risk policy documentation in place; and operational, administrative capacity and reporting capability, to successfully implement the proposed programme. Applicant to submit, along with the application, the background documentation of the on-boarding and loan management system being used, describing in detail the functionality and output. Applicant to submit its on-lending pricing structure/methodology, credit and risk policy documentation, as well as portfolio management policy.
2. The NBI must be a South African-owned and registered company.
3. The NBI must be located in South Africa.
4. The NBI must be appropriately registered and accredited with the relevant authorities to carry out its lending activity (such as National Credit Regulator, FSCA and other relevant regulatory bodies as applicable). Applicants to submit a valid licence or registration certificate.
5. The NBI should have a proven financially sustainable business model, a developmental mandate, a capacity to support SMMEs, and technical experience in lending and loan book management.
6. Minimum funding the IDC will offer is R50 million up to a maximum of R250m NB: The final approved value will be dependent on the outcome of a thorough assessment undertaken by the IDC.
7. Applicants (contracting party) must be solvent and profitable for the last 2 financial years.
8. Applicants are to submit the latest AUDITED annual financial statements for the last 3 financial years.
9. The NBI is to submit a list of available pipeline prospects ready to take up at least 50% of the funding request.
10. At least 50% of IDC funding must be towards IDC’s targeted sectors. Preference will be given to NBIs who target more than 50% (refer to Annexure B for IDC mandated sectors).
11. The NBI must have the capacity to deploy the funds within 1 year of IDC approval. Initiatives demonstrating realistic/plausible impact in a shorter period will be considered more competitive.
12. NBIs must have a track record in managing credit lines with repayment terms.