More Business Credit Schemes to come from National Development Bank

It appears that there are more goodies to come from the National Development Bank (NDB). After seeing the notice for the Stret Pasin Stoa Scheme, I contacted NDB with some questions. I was glad to hear back from an old friend of the Masalai Blog, a Mr. Desmond Yaninen.

For those that may not remember, back in 2009, Desmond had circulated a passionate email about the state of housing in Port Moresby. This ended up with  ICCC officially directing the Commission to conduct a review on Housing. Its 2010 report and findings can be seen here and several moves have been on the way now to increase housing in PNG and Port Moresby as well.

But you can certainly see where Desmond’s passion was coming from and he responded to my questions as follows:

” Hi Emmanuel,

Thanks for your email. We raised a lot of eyebrows back in 2008 with the Real Estate Injustice email petition and I commend your active involvement in society via Masalai and Rokrok.

I am now the head of all Lending for NDB and am behind a number of key initiatives aimed at empowering our indigenous population including the Stret Pasin Scheme.

Answers to your questions are below:

  1. Are you able to finance SME’s in other industry sectors under this scheme as well?

Yes. We will assess each application on its merits and will consider accordingly. The beauty of this scheme is that now it will not be restricted to the retail sector. It may be IT, Real Estate, Import/Export, Agribusiness, Pharmaceuticals, Service, Tourism/Hospitality etc…

  1. What is the financing limit for each application?

Maximum is K1 million, but most of the businesses we will fund should be  between K100,000 – to K400,000. We plan to evenly distribute funds to all provinces and or districts.

  1. What are the interest rates and repayment terms?

Interest Rates will be fixed at 15% and repayment frequency will depend on the nature of the business ie. Monthly/quarterly/annually. The period for each loan will also be on a case by case basis. A business with a stronger cash flow will always be more riskier so the term will be shorter, but a weaker cash flow may have a longer term. Typically shortest period will be 2 years and max 10 years.

This scheme has limits the would restrict young people from getting into business, eg. Being married, or over 25 years. Another key initiative that I am working is the NDB Youth In Business Credit Scheme. This will be run as a competition for young people from 18 – 30. They will have to submit business plans to NDB, and the best plans will receive up to K100,000 capital to kick start their businesses. Also under this scheme will be scholarships, coaching/mentoring for young people. We aim to cultivate that next generation of entrepreneurs through this scheme. Expected launching will be April 2012.

Our Women In Business desk is another initiative we’ve established targeting the female segment. Since 2010, it has grown by over 1000% from 9 to 90 female clients and loans growing from K700,000 to K9 million at the end of 2011. In 2012 we aim to fund another K20 million to women across PNG.

NDB has these, and many more brilliant strategies to financially empower our indigenous population, and giving credit where its due, this would not have been possible without the support of our good Minister – Sir Puka Temu and the O’Niel/Namah government for allocating to us K130 million this year.

You are welcome to post this email on your blog as I would like to gauge the initial response and feedback from young people on the Youth In Business credit scheme.


Desmond Yaninen”