Demand for SME loans increasing


THE demand for loans from the National Development Bank to assist small and medium enterprises has been increasing by 20 per cent annually, managing director Moses Liu, pictured, says.
He acknowledged the allocation of K100 million in the 2018 national budget because funding has been a major constraint for SMEs to go into business ventures.
“Our records indicate that the demand for the small-businesses loans has grown at 20 per cent on an annual basis,” Liu said.
“We would like to thank the Government for that as they have seen that there is a need for Papua New Guineans to be empowered financially.
“They refuse to accept the status quo that they are by-standers. They want to do things for themselves.
“They want their lives to be changed in their families and communities as well.
“I think that has been the outcome of the Government’s small businesses stimulus package when the Government rolled it out in 2013.
“And with this second stimulus package now, we believe a lot of Papua New Guineans are going to benefit more in the next five years.
“It’s good to note that the Government is supporting the commercial agenda of the National Development Bank.”
He said the bank was a “bank of second chance, giving second opportunity to our customers”.
“For those who were not successful in the first round, they’ve got an opportunity to also improve (by) meeting some of the requirements which are not as stringent as other commercial banks,” he said.
“Most of the people do not understand the concept of a business. This is where you take risks. Therefore, a small-business person needs to put some money in.”