Delta State government has unveiled 10 different loan packages indigenes could leverage to boost productivity and prosperity. Unveiling the products as part of the highlights of the state’s entrepreneurship week, Shiite Bello, the executive secretary of the Delta State Micro, Small, Medium Scale Development Agency (DEMSMA), gave a breakdown of the loans.
Listing the programmes, Bello said Smart vocational and technical credit (SVTC), for instance, is designed to support the asset acquisition and cash flow requirement of MSME such as auto mechanics, electricians and electronics installations service providers, mobile handset repairers, computer soft & hardware technicians, tailors, vulcanizers, shoemakers, plumbers etc. The Facility will only serve micro-entrepreneurs in the first instance with the opportunity to scale up.
According to Bello, “Beneficiaries under this programme must be skilled artisans as defined by DEMSMA Loan Assessment Guidelines. Individuals will get a maximum of N250, 000(Two Hundred and Fifty Thousand Naira) only each, subject to technical determination of the scope of business and cash flow requirement. Beneficiaries must provide acceptable guarantors in line with DEMSMA Risk Management Framework. The loan tenure is between 6 months and 1 year subject to Business Asset Conversion Cycle, etc.”
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There is also the leather works credit (LWC) which is said to have been designed as a follow up to beneficiaries that have primarily graduated from the Delta state Leather-Works Skill Acquisition Programme. This credit is meant to enable start-up and scale-up. Those to benefit are individuals and cooperatives that have completed the Delta State Leather- Works Skills Acquisition Programme or others that can pass the basic test.
“It would depend on the ability of beneficiaries to demonstrate effective and efficient business projection and repayment plan. Non-loan defaulters/on-time payer,” she said. More so, “Beneficiaries under this programme must have completed the Delta State Leather-Works Skills Acquisition programme. Individuals will get a maximum of N250, 000 (Two Hundred and Fifty Thousand Naira) only each subject to technical determination of the scope of business and cash flow requirement. Beneficiaries must provide acceptable guarantors in line with DEMSMA Risk Management Guidelines.”
The cold chain micro-credit (CCMC) has also been designed for operators in the cold room and cold transport value chain business activities within Delta State. It is targeted towards funding start-ups or expansion of existing business needs such as deep freezers, cooling vans etc. Bello told BD SUNDAY that beneficiaries under this programme must be confirmed “business operators as defined by DEMSMA lending guidelines. Beneficiaries will receive after proper due diligence loan amount for micro-credit or SME as may be applicable. Beneficiaries must provide acceptable guarantors in line with DEMSMA credit risk guarantee.”
Step smart credit (SSC), she said is a specialised soft loan intended to finance STEP (Skills Training Entrepreneurial Programme) graduates under the Delta State Government Job Creation Programme, targets artisans and other skilled workers. “Loans will be offered to aid enterprise development in line with Job Creation’s Office Skill Enhancement Programme,” the organisers said. “Beneficiaries must have been trained, certified and given upon graduation a letter from Job Creation Office titled “Fit for micro-credit and must be between the ages of 18 and 35 years,” she further said. Another scheme, Yagep smart credit (YSC), according to Bello, is a soft loan geared towards smallholder production and processing entrepreneurs in Agriculture.
“It is intended to finance YAGEP (Youth Agricultural Entrepreneurial Programme) graduates for startups and existing businesses under the job creation office,” she said. She said that “beneficiaries must have been trained, certified and given upon graduation a letter from Job Creation Office titled ‘Fit for micro-credit’.(The original copy of ‘Fit for micro-credit’ is a required document); A photocopy of the certificate will be required by DEMSMA. Two passport photographs (white background); A photocopy of the beneficiary’s ID Card. Beneficiaries must be between the ages of 18 – 35 years. Beneficiaries must be smallholder farmers. Etc.”
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Other schemes are: GEEP smart credit (GSC)- This enterprises loan is targeted towards fresh graduates who want to remain in their professional field of study and have completed the mandatory one year National Youths Services Corps Programme. Those who qualified for this are Successful/Certified individuals that have completed the Job Creation Office Graduate Empowerment and Employment Programme. Target beneficiaries need not have physical collateral but require to submit the form on the character. Facilities under this programme are accessible to beneficiaries up to N250, 000(Two Hundred Thousand Naira) per application, subject to the technical determination of scope and financial requirements of the enterprise.
Micro retailers credit (MRC): This is a revolving on-lending microcredit facility to support traders. Priority will be given to petty traders in the agricultural subsector. However, consideration to access credit will be given to other petty traders. Those who qualified for this are individuals and cooperatives that have the capacity to run their chosen enterprise. It will be an added advantage if such individual and corporative have run their enterprise for at least six months. The ability of beneficiaries to demonstrate efficient business and repayment plans.
The amount of loan obtainable under this credit product after critical credit risk analysis ranges from N10, 000 to N250, 000 subject to technically determination and scope of business. The Loan tenure is within 6 months to 1 year subject to Asset conversion cycle. The moratorium is between 1 to 3 Months subject to needs assessment. Interest rate is 9percent per Annum (Subject to fund provider). The facility will target largely women. Loans in SME’s may attract collateral security and lien contribution. Repayment is done weekly or monthly subject to the beneficiary’s preference or enterprise type. Business support credit (BSC): Business Support Credit provides financial assistance to validly registered Small &Medium Enterprises (SMEs) in Delta state. Loan amount under this product ranges from N500, 000 to N50, 000,000 per applicant.
Those needed are people that have the capacity to run their chosen enterprise. Such individuals, cooperatives and limited liability companies must have run their enterprise for at least one year. The ability of Beneficiaries to demonstrate effective and efficient business and repayment plans. An acceptable and viable business plan is a prerequisite on application. Applicants for this credit product must show proof of registration certificate from the Corporate Affairs Commission (CAC). They must have kept good financial records. Beneficiaries must provide acceptable guarantors in line with DEMSMA Credit risk guidelines. The Loan tenure is between 1 and 5 years subject to the Asset Conversion Cycle. The moratorium is between 3 and 6 Months subject to needs assessment.
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Agricultural credit (AC): This is a Delta State Micro Small & Medium Enterprises Development product designed to facilitate the funding of agricultural development in partnership with Delta State Ministry of Agriculture to bridge the funding gap in agro-processing and production. Individuals and cooperatives that have proven capacity to run their chosen enterprise are needed. It will be an added advantage if such individuals and cooperatives have run their enterprise for at least six months. The ability of Beneficiaries to demonstrate effective /efficient business and repayment plans.
Beneficiaries must show evidence that they are registered with the Ministry of Agriculture. Individuals will get a maximum of N250, 000(Two Hundred and Fifty Thousand Naira) each subject to technical determination of the scope of business and cash flow requirement of the enterprises. Cottage industry development credit (CIDC): This is designed to facilitate the funding of the cottage industry development in partnership with the Delta State Ministry of Commerce and Industry and other relevant development partners. Individuals, cooperatives and cluster groups that have proven capacity to run their chosen enterprise are needed here. Must be registered with Delta State Ministry of Commerce and Industry. It will be an added advantage if such individual and co-operatives have run their enterprise for at least six months. The ability of beneficiaries to demonstrate effective/efficient business and repayment plan.
Beneficiaries under this programme must be registered and endorsed by the Ministry of Commerce and Industry. Individuals, groups or clusters will get finance subject to a maximum of N2, 500,000(Two Million Five Hundred Naira only) each subject to technical determination of the scope of business and cash flow requirement of the enterprises. Beneficiaries must provide acceptable guarantors in line with DEMSMA credit risk Guarantee. The Loan tenure is subject to Asset Conversion Cycle. The moratorium is between 3 to 6 Months subject to needs assessment. Interest rate is 9percent per annum (subject to fund provider). The facility will largely target agro-processors in comparative advantage products of Delta State. SME Loans may attract collateral security and lien contribution. Most equipment would be purchased by the agency from the manufacturers.
The executive secretary said: “We expect the people of Delta State to pay close attention to business opportunities even as politicians canvas for their votes. The masses must pursue businesses to achieve economic stability so that whether political fallouts come or not, the family must feed and solve basic problems. The local council elections are around the corner but just as politicians would be going round to campaign for votes, we would continue to campaign for entrepreneurship.”
Many observers regard the event as a giant step in moving people at the bottom of the pyramid economically a new level in Delta State. The state government seems to reason that access to funds is the most important aspect of boosting economic boon in furtherance of the present administration’s agenda of “prosperity for all Deltans”.
Ignatius Chukwu
