BSP receives loan applications to the value of K82.1million for SME Credit Enhancement Scheme

Bank South Pacific continues to receive a lot of interest under the SME Credit Enhancement Scheme since the SME Loan product was rolled out on 4th October, 2020," said the Head of SME Retail - Stanerd Wai.

Speaking on the Nasfund FM100 show today alongside BSP Group CEO Robin Fleming, Mr Wai said while the interest is there, BSP is managing the perception of customers.

The SME Credit Enhancement Loan product targets existing SMEs that have an annual turnover of K3m. At 5% Fixed interest rate, customers can borrow from K5, 000 to K3m for a term of 6 months to 60 months.

A minimum of 30% equity that represents the borrower's own contribution to the loan proposal is required, apart from having acceptable security assets to cover loan amount requested.

Mr Wai explained that acceptable security assets are properties on state lease land and moveable assets. Refinancing of existing business loans with either BSP or other banks is allowed subject to normal credit guidelines.

"We have received a lot of interest - a pipeline of 324 applications valuing at K82.1m and yes, this product is targeting established SMEs that demonstrate financial capacity to repay their loans. Our lending process is stream lined to meet financing needs of our customers.  It is important that borrowers make initial contacts with our lending officers at their nearest branches for information on the required documents and eligibility criteria prior to submitting loan applications to avoid inconveniences," Mr Wai added.

BSP Group CEO Robin Fleming said the partnership agreement between BSP and the government allows for ongoing contribution of K100m for the next five years and next year's contribution for the SME Credit Enhancement scheme is  included in the 2021 budget.

Nasfund FM100 Talk back show host Cullighan Tanda, BSP Group CEO Robin Fleming and Head of SME Stanerd Wai.