BY MELISHA YAFOI
The National Development Bank will publish its official terms and conditions for its new loan products under the financing of SMEs of K80 million.
According to NDB, the four new products introduced by the bank to help SMEs came as a result of the dialogue the bank had with the government to help Papua New Guinea and which includes the Bougainville Enterprise product.
Of the K 80 million, K 40 million will be allocated to MSME agriculture, K 24 million will be allocated to the loan for young people and small businesses, the loan for women in business will be allocated K 8 million. K and Bougainville Enterprise will receive K 8 million.
When asked about the terms and conditions of these loans, this newspaper was informed that there are two sections in the terms and conditions in order to obtain a loan under any of the four products.
First-time applicants should:
– Provide a certificate of completion of a financial literacy course;
– Their cash flow projections must be kept and realistic;
– Have a clean credit report;
– Must open or have an account with Peoples Mirco Bank Limited;
– Possess an IPA business registration certificate and have an IRC TIN number; and
– All of their application fees are 1% and the debt service must be greater than 2: 1.
While those who wish to obtain a loan as a producer for any product should:
– Provide a certificate of completion of a financial literacy course;
– The annual returns of both IPA and IRC show profitability;
– Product board license (if applicable) and approval from DAL or NPMA regarding viability and cash flow projections must be approved by agency (agricultural product);
– Have a clean credit report;
– Possess an IPA business registration certificate and have an IRC TIN number; and
– All of their application fees are 1% and debt service is 2: 1 based on future projections and greater than 1.5: 1 on past history with quarterly payments.
NDB has also confirmed that it will not lend at this point until funds are received and when that happens all applications will be received, assessed and processed by NDB staff in branches across the country and forwarded to NDB Credit for advice and approval.
