Small and Medium Enterprise businesses to benefit with scheme at Al Salam Bank
June 04, 2019
Businesses can now benefit more from the Small and Medium Enterprises, (SME) Scheme, initiated by the government in partnership with the Al Salam bank.
To this effect a Memorandum of Understanding, MOU, geared towards encouraging business development and entrepreneurship was signed today by the Minister for Finance, Trade, Investment and Economic Planning, Maurice Loustau Lalanne, representing the government of Seychelles and theAl Salam bank’s Chief Operations Officer, Mr M. V. Sreeraam.
This is for the implementation and financing of the Small and Medium Enterprises, (SME) Scheme and it is applicable for new businesses with an annual turnover, which is below six million Seychelles rupees. The scheme will cover loans up to three (3) million Seychelles rupees and amongst other criteria, will not be applicable for the refinancing of existing loans and not applicable to retail and wholesale. According to Ambassador Lalanne, the main components are construction, tourism, real estate, transportation are the sectors that the country needs and which can benefit from this scheme.
During the signing ceremony, Ambassador Lalanne noted the government wishes to introduce an incentive scheme that will help boost access to finance for Small and Medium Enterprises, SMEs. And Mr. Sreeraam, on his part stated that Al Salam Bank, being a new bank, would like to contribute
Mr Sreeraam explained that on the first one million Seychelles rupees, clients will be paying a 5% interest and on the next two million, 7%. For additional amounts above three (3) million, the bank will determine the interest rates, taking into account the client’s credit status. The government is subsidizing the difference in interest rates paid by the client and the lending rates of the bank.
Minister Lalanne also said that last year a total of 595 SME loans were provided for a value of four hundred and eighty one million rupees.
Among eligibility criterion, applicants will need to have an account with the bank, and applicants are required to contribute 2.5%, or twenty five thousand rupees. Repayment period is at 5 to 7 years, and with a grace period of up to 6 months for the repayment of the loan.