How to Get a Loan in Botswana: The Basics

how to get a loan in botswana

There are times when you need to know how to get a loan in Botswana. You may want to borrow money to grow your business, invest in property or cover an unexpected household expense.

Several financing options are available. We explain the basics of the different loan options.

Personal bank loans in Botswana

Personal bank loans have comparatively low interest rates and structured repayment plans. They’re suitable for financing minor expenses, such as a dental bill or unexpected home repairs.

No assets or collateral are required to secure this type of loan.

To mitigate their own risks, banks rely on credit ratings, scores and histories to determine who qualifies for unsecured loans or lines of credit.

Only people who are employed and/or will clearly have the means to pay back loans are likely to qualify.

You’ll have to supply original payslips, confirmation of employment and residence, bank statements and settlement balances of any outstanding loans.

If you can’t produce the paperwork, or your credit history is poor, you won’t get the funds you need or qualify for a credit card or revolving line of credit.

Business loans for Batswana living in Gaborone

Business loans are designed to support start-ups and existing companies. The amount of money available is higher, the repayment terms longer and some form of collateral is required.

Getting a business loan through the usual channels is tied up in red tape. As well as supplying at least three months of business financials, banks request:

  • share certificates
  • projected cash flow over the loan term
  • environmental compliance certificates
  • company and management profiles
  • directors’ personal balance sheets.

Established companies that have shown good profits in the past are contenders for business loans.

If your company is struggling to make ends meet and has no deals pending, it’s unlikely to qualify.

Start-ups may also struggle to get business loans. This is because they haven’t been in operation for long enough to assure lenders of their continued profitability.

Botswana instalment loans

Instalment loans are unsecured personal loans. They’re usually nominal in value.

They’re similar to payday loans. Typically, they’re directed at people with full-time jobs.

Before approving this type of loan, the lender will take factors like your net pay and credit history into account.

The lender may also require a signed memorandum of understanding from your employer.

Asset-based loans in Gaborone

Asset-based loans are loans backed by high-value assets. Some examples of these assets are luxury watches, antiques, motor bikes, cars or even boats.

An asset-based loan is a type of secured loan.

In other words, the lender doesn’t have to guess whether you’ll repay the loan. Instead, the asset “secures” the loan by serving as collateral.

Anyone over the age of 18 who owns a high-value asset may be approved for this type of loan. You don’t need a good credit history or to be currently employed.

Getting an asset-based loan from lamna Botswana

At lamna Botswana, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or valuable works of art.

For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form.

Complete our Online Application Form