BSP ready to give loans

Business

By DALE LUMA
CUSTOMERS who want to apply for a business loan under the Government’s K200 million small to medium enterprises (SMEs) support programme can now do so with Bank South Pacific (BSP) starting today.
This comes after the Government, through the Department of Commerce and Industry (DCI), transferred K100 million to the bank yesterday.
According to BSP chief executive officer Robin Fleming, the programme was for all customers and not limited to BSP customers.
The loan rates include a five per cent interest with over a 15-year loan repayment term under the agreement between BSP and the Government.
“The facility is open to everyone whether you are a BSP customer or any other customer,” Fleming said.
“Key component of the discussion with the government is that we want to make sure that the money they provide us is able to be available over a long period of time.
“So our normal lending requirements will apply.
“We already have loan portfolios for our smart business for about K100 million.
“So we do have some experience to provide those types of facilities which will include some form of collateral, confirmation you are able to repay the loan and hopefully over the period with a lower interest rate, those repayments will be lower than previously.
“The loan term can be up to 15 years but depends on the asset that you are purchasing.”
Fleming said the loan range would depend on SME’s net profit and how much they could repay.
According to Prime Minister James Marape, the Government’s SME programme will run over the next five years with the state giving K200 million annually.
In this year’s allocation of K200 million, Cabinet approved K100 million for BSP, K80 million to the National Development Bank (NDB) and K20 million to the DCI.

11 comments

  • This is a very good idea which the current government had brought forward for helping the native Papua New Guineans who have the potential but no start up capital or seed money. With their shares from this K200m, anyone can start up something for long term benefit. This will definitely improve the living standards of people from all walks of life.
    I personally feels that the Prime Minister Hon James Marape have people at heart.

  • The Qualified beneficiaries to this loan condition applied here for the SMEs with K250 000 Annual turnover is unfair and discriminating those small scale SME right around PNG .
    BSP please reconsider your conditions and set FLAT rate lending amount.
    Today’s front page report has already alerted SME discrimination paving way for social stratification to emerge at unpredictable levels.
    Just my few correct me.

  • So BSP is implying that small SMS practitioners do not qualify. This means it’s again a corporate scheme to maintain those who have accounts and are able to pay tax. Small people continue to struggle in the informal sector. What a pity, the much talked about SME funds again goes through the system process and procedures.

  • I would like to thank the government and the bsp Bank for giving us this opportunity to apply for loan for loan to support sme’s in PNG..I’m also interested in this great opportunity also thums up for Prime Minister James Marape for creating an opportunity like this for small sme’s…

  • Mr. Robin Fleming and his management must review the ‘normal lending requirement’ he talks about and accommodate the lower level income earners whom the government aims to give some opportunity for them to start or expand MSME.

  • I thought this will be funds with no string attached…faul…see indonesia n other asian countries lend funds to their citizen which has become a win win situation for both parties..

  • what about Kina Bank, a large number of SME business owner are currently doing banking with kina bank. can the government be fair and allocate some SME funds into Kina Bank.

  • See how the system works. The Gov’t doe not own BSP. Its on BSP’s T&C.
    Banking is a systematic manipulation of monetary gain by the Banking Corp.
    Simply put: Citizens Money is again pumped into the Bank and then Bank gives out loan with its OWN T&C-if fail to repay. The Banking Corp will claim your house/Car/Business etc-you life.
    Gov’t Paves the way to see that Citizens are sold out from their OWN Land.

    Its has ALWAYS been this way.

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