Kwa Zulu Rehabilitation Trust Fund, Credit Guarantee Scheme

The fund set R10m aside for Kwa Zulu entrepreneurs whose businesses were adversely affected by unrest up to 1994. This fund is meant to cover lack of collateral for businesses wishing to reinstate their operations. The entrepreneurs could be in a different line of business presently and proof that the loss of the first business was due to the unrest will be required. The Khula Credit Guarantee Scheme provides a guarantee for up to 80% of the advance required from the financial institution The Fund then covers the 10% contribution required from the applicant by issuing a letter of undertaking through ABSA, which then holds the funds on investment. Other qualifying criteria are as per Individual Guarantee Scheme agreements held with the various banks.