Sixty per cent of the total loan granted by Japan International Cooperation Agency will be disbursed under the Credit Guarantee Insurance System. Priority will be given to less developed regions and states for the loan disbursement plan, according to the Small and Medium Industrial Development Bank.
According to the SMIDB’s statement, SMEs in real-estate, jewellery, entertainment, funfair, tobacco, alcohol, beer, ammunition and sectors that may hamper social stability will not be entitled to the loan disbursement plan.
SMEs will have to spend loans either on the purchase of machines or the construction of buildings. The SMIDB will disburse loans to SMEs under the rules designated by the JICA and the SMIDB.
The SMIDB will disburse loans only to businesses that help develop the production sector and are less likely to lose money, as SMEs do not need to put up collateral for the loans. For more information, SMEs can contact nearby bank branches.
The SMIDB will grant a total of K300 million to each SME.