Small businesses to wait till next year to access loan

Business

SMALL-Medium business operators thinking of accessing the Government-provided loan from the National Development Bank have to wait until the first quarter of next year.
The businesses have to register their business with the Investment Promotion Authority (IPA), get a taxpayer identification number from the Internal Revenue Commission (IRC) and have basic financial literacy training from certified institutions, according to a public notice.
The micro small to medium enterprises (MSME) could access four new loan products but the bank would not accept applications to access funds from the K80 million until the first quarter of next year.
“National Development Bank wishes to inform our valued customers and members of the public that the bank will launch its four new products under the Government funded K80 million MSME credit facility in the first quarter of 2021,” the bank said.
“We are not accepting any loan applications under this facility at this time. MSMEs must register with appropriate regulatory bodies such as IPA and IRC.
“The bank encourages interested persons to seek basic financial literacy training from certified institutions as this is a prerequisite to qualify for a MSME credit facility as well as provide records and cash flows.
“Full disclosure of the terms and conditions of the MSME products will be published in the first quarter of 2021.”

2 comments

  • There we go again..making it hard for simple penges to obtain loans…please try and use indonesian style of assisting simple people

  • Banks have their loan requirements such as 30% equity contribution and I see that the potential people in the villages will not be able to get loans due to this requirement. For instance; an applicant in the village will not afford K3,000.00 equity contribution if he wants to apply for K10,000.00 to loan.
    I commend the Central Governor, Honorable MP Mr Robert Agarobe for setting up Aniani Cooperative to fund this 30% equity on behalf of the small people in the villages of Central Province.
    My challenge to other Governors or Open MPs to see this example from Central Governor and set up such schemes so your people in the villages can get loans to help themselves and also they can use small portion of their profits to develop their communities in a little way.

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