Free State Development Corporation

Co-operatives Development Fund Objectives

  • To fund Co-operatives for expansion and sustainability;
  • Acquiring and supplying of any product produced by the Co-operative
  • The loans will be considered only for income generating assets for purpose of ensuring that the Co-operatives produce and supply goods and services;

Financing Policy

Loan size

Based on the capital required but not to exceed R500 000 per investment


  • Purchase of shares from existing businesses;
  • Debt financing;
  • Guarantees;
  • Plant relocation;
  • Non income generating assets
  • Financing of vehicles/automobiles for private use is explicitly excluded
  • Property Development

Loan repayment terms

  • 60 to 72 months maximum

Interest Rate (Fluctuating)

  • The interest rate charged will be based on the prevailing prime rate plus 1%.

Grace period

  • The grace period for payment will depend on the nature of a project, which in the case of a new business shall not exceed three months from date of the first disbursement.
  • The interest charged during the grace period shall be capitalized.
  • In the case of a existing business the grace period may not exceed one month from date of the first disbursement.

Own Contribution

  • No equity contribution shall be required for this loan products


A 100% security cover is desirable; however, a minimum cover of 60% will be considered, depending on the product and capital required. The Viability and risk of the venture will also be considered for purpose of determining the security cover.


The following fees and costs shall be payable by all applicants:

  • Initiation fees equal to 2% or R2 500 plus VAT(whichever is lesser) of the approved loan amount exceeding R50 000.00, is payable before implementation and disbursement of the loan (this amount can be capitalised if requested by client).
  • Security registration costs shall be borne by the client and may be capitalised.


  • The borrower must cede comprehensive short-term business insurance to the FDC.

FDC Head Office

33 Kellner Street

Tel: 051 4000 800
Email: \

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Fast Facts

  • Capital: Bloemfontein
  • Languages: 64.4% Sesotho
    Languages: 11.9% Afrikaans, 9.1% isiXhosa
  • Population density: 23 people per km²
  • Area 129, 480 km²
  • Share of total SA area 10.6%

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