What are Non-bank Retail Financial Intermediaries?
Non-bank Retail Financial Intermediaries are independent organisations or companies, which are lent money by Khula on a wholesale basis to on-lend to SMEs. Since RFIs are obligated to repay Khula, they use their own lending criteria to on-lend Khula's funding. However, each RFI has to contribute towards the achievement of Khula's developmental impact objectives, such as providing funding to SMEs which are black owned, women owned and from rural areas. Khula restricts its RFIs to on-lending a minimum of R10 000 and a maximum of R3 million per SME.
Purpose of RFIs
- To provide a funding alternative to SMEs, who would
otherwise not be able to obtain funding from the commercial banks;
- To provide financing solutions to SMEs operating in niche markets, where traditional financial products would otherwise not be able to meet the financial requirements; and
- To provide Khula with a vehicle to facilitate access to finance to previously non-bankable SMEs operating in rural areas.
Who qualifies to become an RFI?
- Institutions incorporated in South Africa;
- The RFI should be registered with all the requisite bodies e.g. National Credit Regulator, Financial Services Board etc, where necessary;
- Experience in SME finance or exposure to credit management; and
- Level 4 B-BBEE rating.
Geographic Spread of Existing RFIs
Khula currently has a network of non-bank RFIs represented in Gauteng, Kwa Zulu-Natal, Eastern Cape, Western Cape, Free State, Limpopo and Mpumalanga. Although there are RFI branches in Gauteng, Kwa Zulu-Natal and the Western Cape, priority is given to provinces other than the three latter provinces.
Download RFI list
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