SME not for the faint hearted

In order to secure farmers and their assets, Madang Governor Ramsey Pariwa has allocated K5 million to the National Development Bank (NDB) for Small-Medium Enterprises (SME) to utilize.

This allocation has already been passed and is now awaiting the Madang provincial accounts to open, enabling the people of Madang to access these funds.

Whilst recently addressing the community of Dimer Village in Sumgilbar LLG, Governor Pariwa touched on the SME scheme already in place and the requirements needed in order to apply for a loan. He challenged the people, stating that the requirements are there to ensure that only genuine and serious applicants are entertained. The Governor pointed out that, on many occasions, successful applicants tend to misuse monies received from SME funding and never really progress.

The minimum loan amount an applicant would be eligible to receive is K5000 as the Governor states that it would be ample enough to assist serious entrepreneurs to capitalize and kick start their business. As for the maximum amount, it would depend upon the range of each business or individual’s current stance substantiated level they are in, but not exceeding K100,000.

Another vital requirement for aspiring SME applicants in order to have their loan approved, as the Governor stated, would be a certificate in Financial Literacy. He advised the people of Dimer that trainings will be organized with commerce officers of the Administration to run trainings so that applicants will be able to meet the requirement for an approved loan.

The final requirement as negotiated by the Governor with the General Manager for NDB is the interest repayment rate. Currently, the interest repayment rate is at 6% which is the standard rate for commercial banks within the country.

The governor has done a negotiation with the NDB to bring the repayment rate to local business starters level at 4% and it has been agreed on.

Governor Pariwa is keen on assisting aspiring local villagers, who really want to venture into the SME sector in order to uplift their standard of living.

Author: 
Loop Author