By GABRIEL KATUHO
GABI family in Rigo district of Central Province have purchased a vehicle through the Rigo District Credit Guarantee Scheme on February 27, 2025.
This marks another milestone for Mama Bank and the people of Rigo district as they celebrate the disbursement of SME loans for motor vehicles at a special 12% interest rate.
The Rigo District Credit Guarantee Scheme initiative was established through a Memorandum of Understanding (MoU) between Rigo District Development Authority (DDA) and Mama Bank in April 2022.
Mr. Vali Gabi and Mrs. Vabiri Gabi from Rivali village in Rigo district have secured a loan from Mama Bank to purchase a truck, boosting their business while improving transportation access for the people in their area.
Through the Rigo DDA Funding Scheme, Mr. & Mrs. Gabi have now expanded into the PMV business, responding to the growing transport needs of their community.
Mama Bank is proud to empower hardworking entrepreneurs like them to achieve financial independence and drive economic growth in rural Papua New Guinea.
Since the establishment of partnership, the Mama bank has successfully given out 16 loans in total with 15 vehicles to the local entrepreneurs in Rigo.
Second Secretary to Rigo MP, Charles Amini stated that the partnership is to help the local people to apply for loans with Mama bank to help fund their business operations.
“The Rigo DDA contributes K2.6 million per annum and the Mama Bank tops it up to give out loan to the Rigo people,” he said.
“The equity that is provided by the bank in this case is discounted for the members of Rigo. If it’s under K20, 000, the equity is 10 percent, and if it’s over K20, 000, then the equity is 20 percent.”
Electoral Officer, Mama Bank and Operations, Dori Inara also shared similar sentiments, highlighting the process in which the local people can access the loans.
“The people of Rigo have to come to the district office to apply for the loans within the bank,” he said.
“I go through their papers and we issue check list. When the check list is completed, we send them into the bank,” Mr. Inara said.
He said the loans can vary from small projects like piggery, trade store, table market, farming and big ones like trucks and the PMV buses.
Mr. Vali Gabi expressed his gratitude towards the Rigo DDA and Mama Bank for the loan, stating that the vehicle will help his business operations.
