As part of ways to provide funds for Micro Small and Medium Enterprises (MSMEs), Jaiz Bank has initiated a package for SMEs to access loan without collateral.
Speaking at the conference organised by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to mark the 2019 World MSMEs day, the representative of Micro, Small and Medium Enterprise Department of Jaiz Bank PLC, Aliyu Buhari, said part of the bank’s vision is easing access to finance for SMES.
“It’s in that line that we are able to get a N3 billion bank facility from Bank of Industry, which we are currently disbursing. Each SME can access up to N5 million without collateral. And it can go up to N10 million,” Buhari said.
“For businesses that are into processing and manufacturing, in line with the current government’s collateral registry policy, they don’t require bringing any collateral. All they need to do is, use the equipment we are buying for them as collateral,” he said.
The Chief Operating Officer, Development Bank of Nigeria (DBN), Bonaventure Okhaimo, said the bank was disbursing loans to SMEs through microfinance banks at single interest rate with long moratorium.
The Director, Enterprises Development Promotion at SMEDAN, Mr Monday Ewans, who represented the Director-General of the agency, Dr Dikko Radda, said the agency is advocating for the establishment of MSMEs development bank to address the fundamental challenge of funding for SMEs.
“A MSMEs development bank is a robust and one-stop development finance institution mandated to nurture and meet the funding and business growth needs of MSMEs. The bank should complement existing products and services offered by commercial banks,” Ewans said.
The theme for the 2019 MSMEs day celebration is ‘Big money for Small Business: Financing the SDGs’.