- The energy loan scheme is open to only commercial customers for now, but it will soon reach individual customers.
- The scheme will assist businesses and households through financial incentives to install rooftop solar-generated energy and energy storage assets.
First National Bank (FNB), South Africa, has joined the Energy Bounce Back (EBB) Loan Guarantee Scheme to help customers mitigate the impact of power supply challenges. This makes FNB the first commercial bank to enter into the EBB scheme. Though the scheme is currently available for commercial customers, it will soon extend to individual FNB and non-FNB customers.
Last month, the National Treasury launched the EBB Loan Guarantee Scheme to mitigate the impact of load shedding. The EBB scheme allows households and small businesses to borrow a maximum of R300,000 and R10 million, respectively, from commercial banks. The energy loan scheme will assist businesses and households through financial incentives to install rooftop solar-generated energy and energy storage assets.
CEO Jacques Celliers, FNB, said, “Energy security continues to be one of the key challenges for individual customers, families, and businesses. As a financial services partner, we want to help our customers meet their day-to-day requirements to enable them to thrive. While we have been supporting our customers with a range of solutions to build resilience against energy challenges, we believe that the Energy Bounce Back Loan Scheme adds significant value, as it allows us to help many more.”
According to the National Treasury, commercial bank facilitates participation in the EBB Loan Guarantee Scheme on an opt-in basis. Participation in the scheme through commercial banks is subject to basic requirements, such as tax compliance and adherence to other legal and regulatory requirements.
FNB said the scheme will subject commercial customers to routine credit risk evaluation and processes for loans ranging from a minimum of R10,000 to a maximum of R10 million to qualify. Any business with a maximum turnover of R300 million per annum can apply. Business clients can access the offer immediately after the first bounce-back offering. They can also settle the loan early since there are no required deposits or any penalty fee payments.
As the firm outlines, individual customers are to apply for a personal loan at a personalised interest rate. However, after verifying proof of use, the interest rate will be lowered to prime +1%, fixed for the personal loan term. Furthermore, individuals can take up a personal loan with a minimum of R3,000 up to R300,000. At least 90% of the funds must be used for solar panels and related expenses such as batteries and inverters. Celliers added that FNB would soon be able to offer individual customers access to the EBB Loan before the end of the year.