In a bid to address the persistent power supply challenges faced by businesses and households in South Africa, FNB has entered into the Energy Bounce Back (EBB) Loan Guarantee Scheme, a government initiative announced by the National Treasury and administered by the South African Reserve Bank.
The EBB Loan Guarantee Scheme aims to provide financial incentives for the installation of rooftop solar-generated energy and energy storage assets, thereby mitigating the impact of power supply issues. Currently, the scheme is accessible to commercial customers, with plans to extend it to individual FNB and non-FNB customers in the near future.
Jacques Celliers, CEO of FNB, emphasised the significance of this initiative, saying, “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.”
For commercial customers, specific criteria must be met:
- The application is subject to FNB’s credit risk evaluation and processes.
- Businesses can access the scheme through FNB and WesBank asset-based finance.
- The loan options range from a minimum of R10,000 to a maximum of R10 million.
- Any business with a maximum turnover of R300 million per annum is eligible.
- Customers can settle the loan early without incurring penalty fees.
- No deposit is required.
- Only one active Energy Bounce Back Loan can be allocated at a time.
- The loan cannot be used to pay back existing debt.
Individuals interested in benefiting from this scheme should note the following criteria:
- The application is subject to FNB’s credit risk evaluation and processes.
- Applicants can request a personal loan at a personalized interest rate.
- Once proof of use is verified, the interest rate is lowered to prime +1%, fixed for the term of the personal loan.
- Individuals can secure a personal loan with a minimum of R3,000 up to R300,000.
- At least 90% of the funds must be allocated to solar panels and related expenses, such as batteries and inverters.
- Backup energy solutions are not eligible for this benefit.
- Only one Energy Bounce Back loan can be taken by an individual customer.
FNB CEO Jacques Celliers expressed optimism about the program’s expansion, stating, “We are encouraged by the progress made with National Treasury and expect that we will soon be able to offer our individual customers access to the Energy Bounce Back Loan before the end of the year; our business clients can access the offer immediately off the back of the first bounce-back offering.”
He added that these initiatives would complement FNB’s existing offerings, which include educational material, energy solutions, and finance, available under nav>> Energy on the FNB App. The range of solutions offered covers various needs, with options starting as low as R129 per month. Products include UPS systems, power trolleys, lithium-ion power stations, standalone batteries, solar panels, inverters, generators, and heat pumps.
This strategic move by FNB underscores the commitment of financial institutions to help South African businesses and individuals navigate the energy challenges that have long been a concern in the region. The Energy Bounce Back Loan Guarantee Scheme provides an opportunity for consumers to invest in sustainable energy solutions and contribute to a more resilient and stable power supply landscape.
As FNB takes steps to participate in this government initiative, it aligns with its mission to support customers in achieving their energy requirements and promoting a more sustainable future for South Africa.
