By ZEBEDEE KUMPIO
THE Yangoru-Saussia District Development Authority (DDA) in East Sepik Province has set up a Credit Guarantee Scheme to assist village-based Small and Medium Enterprises (SMEs).
To facilitate the setup, a Memorandum of Agreement (MoA) was signed between Yangogu-Saussia DDA and the Women’s Micro Bank Limited in Port Moresby on yesterday.
The MoA aims at assisting village-based SMEs in the district to take loans from the bank.
Women’s Micro Bank Chief Executive Officer (CEO), Gunanidhi Das, and Minister for International Trade and Investment and Member for Yangoru-Saussia, Hon. Richard Maru, jointly signed the MoA.
Maru, who is also the Chairman of Yangoru-Saussia DDA, said: “this scheme targets women in villages, although men and youths can also borrow from the scheme”.
Minister Maru said under the partnership, his DDA has provided free office space and a motor vehicle for the Women’s Micro Bank, which has already established its office in the district.
He said the scheme is called the “Putim na Kisim Mani Scheme”, which allows potential borrowers to save with the bank first before they can borrow.
“The minimum loan will be K500 and the maximum will initially be K10, 000,” Minister Maru said.
“It (loan) will go up to K20, 000, subject to those who borrow and repaying their loans successfully.”
“Under this 1:2 scheme, one has to save K1 to borrow K2,” Maru said.
“In the event of a default, the borrower loses their savings with the bank, and the difference will be paid by the DDA.”
Maru added that the scheme office will be opened by Prime Minister James Marape, and those who apply for loans starting today will be processed and given out during the opening ceremony.
