Loan product guide to help small businesses with decisions

By DALE LUMA
SMALL and medium enterprises (SMEs) can now have access to different loan products offered by financial institutions through the SME Loan Product Guide launched yesterday.
The loan guide was developed by the Centre for Excellence in Financial Inclusion (Cefi) with stakeholders aimed to serve as a reference guide for SMEs to make better informed financial decisions.
Bank of Papua New Guinea (BPNG) governor Loi Bakani told the launch that access to finance and availability of information were major hindrance to SMEs.
Bakani said studies had identified three main areas which hindered small businesses which include:

• A lack of money management skills;
• A lack of understanding of the role of financial institutions; and,
• A lack of access to banking information.

“These are very critical areas that we try to address and try to limit some of the hindrances to the population at large,” Bakani said.
“The lack of access to banking information still remains a challenge.
“The SME lending product booklet that we launch today is another important step to provide information to SMEs to have access to banking services, client requirements and contacts details.
“I’m sure this will immensely benefit the SME sector and the book also provides key message on financial information on financial literacy, SME finance as well as the access to finance to informal and agriculture enterprise identified as key priority areas under the national financial inclusion strategy,” he said.
The booklet will be reviewed after 12 months.
Cefi has started rolling out financial literacy in the country and has reached over 250,000 people.
This is to provide knowledge on money managing skills mainly in savings and budgeting and banking services.
It was indicated that the Central Bank in partnership with Cefi was also endeavouring to conduct financial literacy expositions in oil palm provinces soon.