Bank playing favourites with SME loans

 ON behalf of small and medium enterprise (SME) owners based in Madang, I would like to air my concerns on how loan applications are being processed and recommended for approval by the National Development Bank (NDB) in Madang.

I own an SME that qualifies to secure a loan from the bank.

But I am still knocking on the door because it appears less attention is given to those who are not connected with the bank’s management or religiously connected one way or the other.

I appreciate the government’s vision to empower all SMEs throughout the country through NDB loans with a  lending rate of 6.5% per annum and other borrowing arrangements. 

But we still encounter stiff criteria being imposed on us when we got to obtain loans. 

It seems that as long as you are from Yangoru, an SDA follower or personally connected with the branch management, then you will be a top priority for your loan application to be recommended for approval.

During the SME summit in Madang which ended on a high note, the service providers engaged were friends, family members and business partners of bank officials. 

The security firm which provided security throughout the summit is one good example.

It requires an investigation by the authorities.

Bank officials are seen partying and enjoying themselves almost week in and week out with clients prior to the approval of their loan applications. 

This is a dangerous trend and should it continue, the majority of Papua New Guineans will miss out while the minority benefits. 

We need to put a stop to this corrupt dealing and allow every PNG citizen to be given an opportunity based on merit.

Concerned SME Owner

Madang