Registered MSMEs can apply for loan

THE National Development Bank (NDB) says micro, small and medium enterprises (MSMEs) should be registered with the Investment Promotion Authority (IPA) before applying for MSME loan packages.
Acting managing director Aaron Underdown said this was an important requirement MSMEs needed to meet in order to benefit from the four new products under the K80 million Government MSME programme.
These products include Women in Business (WIB), Youth and Small Business Enterprise (YSBE), Agriculture and Bougainville Enterprise Loan (BEL).
“Other requirements include a financial literacy certificate, cash flow projection, credit record, and an account with the People’s Micro Bank where applicable, and an IRC TIN number,” he said.
“It is important for customers to note that the bank is not offering financial literacy training.
“It is their individual responsibilities to enquire with other institutions that are offering to acquire a certificate themselves,” he said.
Underdown said that requirements, in terms of equity and security, differed slightly from one loan package to another.
“WIB, YSBE and BEL packages all require 20 per cent equity with 100 per cent security while the agriculture loan package requires only 10 per cent equity with 50 per cent security,” he said.