New agreement to allow locals to apply for loans

 THE people of Central will now have access to loans and financial services from the Nationwide Microbank Ltd following a memorandum of understanding (MOU) signed between the bank and the Central government.

In the MOU signed yesterday, the Central government will provide an initial K1 million to the bank to provide loans as well as financial services to Central people who want to venture into small to medium scale businesses.

The loans will range between K500 –K5000 for smaller loans and K50,000 for bigger loans.

The bank will provide financial education to local people in terms of starting and managing businesses.

Central Governor Kila Haoda said he came up with the scheme because of “handout mentality” where people usually frequent his office seeking assistance. “When I came into the office (as governor), I discovered this ‘handout mentality’ where people come asking for money,” he said.

“People are coming asking for money for business set-ups, so we thought that the best way is to partner with the bank so they can get money (loan) and financial assistance to set up their businesses 

then they can repay the loan,” Haoda said. Nationwide Microbank managing director, Tony Westaway said: “We will provide a whole package of facility to Central people and that includes providing financial education, financial literacy training and be able to teach people goal-based savings and handling credit responsibility.”

“Types of business activities in securing the loan will be like agribusiness, farming, fishing and those sort of activities which are common in Central,” Westaway said.

In the arrangement, clients would deposit 20 per cent of required amount.

A person who wanted a loan of K500 would have to deposit K100.

Haoda urged his people to see the bank once he deposited the money and he promised that would be the start and would continue.