Business women ready to get low interest loans from SME Bank
Businesswomen in the Cambodia Women Entrepreneurs Association (CWEA) will be able to access loans at annual interest rates “0.25 percentage points below market” from the Small and Medium Enterprise Bank of Cambodia Plc (SME Bank), state-owned. Head of CWEA.
CWEA Chairman Keo Mom confirmed the figure to The Post after signing a Memorandum of Understanding (MoU) to that effect with SME Bank CEO Lim Aun on September 9.
Mom, who is also CEO of Ly Ly Food Industry Co Ltd, one of the largest food processing companies in the Kingdom, told The Post that the main objective of the MoU was to establish long-term cooperation. term between CWEA and SME Bank to create and support financial arrangements for women entrepreneurs and promote the growth of small and medium-sized enterprises (SMEs) in the Kingdom.
She said the 0.25 percentage point rebate would give women entrepreneurs access to finance to grow and grow their businesses.
Speaking at the signing ceremony on September 9, Aun of SME Bank also said that the MoU would provide SMEs within CWEA with favorable credit terms to grow and ensure smooth and sustainable operations. .
Meanwhile, SME Bank reported that 148 businesses involved in the tourism value chain – all SMEs – had received $19.86 million in loans under the Tourism Recovery Co-financing Scheme (TRCS) in the country. August 31, or 13.24% of the $150 million budget. . Of that amount, 41%, or just over $8 million, went to women-owned businesses.
Broken down by category, hotels accounted for the most funds, at 25%, followed by guesthouses (23%), restaurants (40%) and other businesses (12%).
The TRCS was rolled out on May 17 to provide a lifeline to businesses involved in the tourism value chain that are considered to have been significantly impacted by the Covid-19 crisis, and is currently being implemented with the support of 19 Participating Financial Institutions (PFIs) . The program’s loan rules and procedures were officially established on July 1, which opened the door to loan applications.
The program was financed by a matching fund between the government and financial institutions, with $75 million from the national budget to be disbursed in the form of loans issued by SME Bank, and the remaining $75 million in the form of loans. granted through PFIs, which include commercial loans. banks and microfinance institutions (MFIs).
The main offers of the project include a maximum interest rate of 6.5% per annum, a grace period of 16 months on principal repayments, a loan term of up to seven years, a loan amount of up to reach $400,000 and the option to receive funds in either riel or US dollars.