07 May 2024

Those longing to benefit from Chema Chema fund should not be troubled by the question: What happens to a Chema Chema loan when a beneficiary dies? Citizen Entrepreneurial Development Agency (CEDA) official, Ms Neo Kgaodi explained during a kgotla meeting in Motokwe on Thursday that the Chema Chema loan is bundled with credit life insurance to take care of the debt when the debtor dies before it is fully paid.

Ms Kgaodi further explained that the arrangement reduced the risks of the loan and at the same time, ensured that the loved ones of the deceased did not experience inheritance nightmare as no assets would be sold to recoup the loan.

She said married couples could apply for Chema Chema loan individually provided that they were operating and funding separate businesses.

Ms Kgaodi reiterated the sentiments by Member of Parliament for Takatokwane, Mr Tshoganetso Leuwe that Chema Chema loans attracted low interest of 2.4 per cent and charged on a simple interest basis, charged once off. Putting this into perspective, she exemplified that P100 loan would attract an interest of P2.40 and P500 loan attracted interest of P12.

She explained that those having outstanding debts with CEDA and other funding institutions were also eligible for Chema Chema funding. Ms Kgaodi advised the informal business community to apply for manageable loans so that they could repay them on time to enable funding of more people, as it was a revolving facility.

Ms Kgaodi explained that CEDA was an ideal organisation to facilitate and transform businesses funded through Chema Chema to become sustainable and profitable enterprises, noting that the agency had a reputable track record of administering informal sector businesses citing Letlhabile and Mabogo dinku.

Registration for Chema Chema starts at the Local Enterprise Authority (LEA), where eligible candidates undergo capacity building on business management skills, before the actual funding is done at CEDA, Ms Kgaodi explained. She advised those wishing to be funded through Chema Chema that hard work, commitment and dedication were the foundation of success. ENDS