In a bid to see Micro Small and Medium Enterprises (MSMEs) thrive, ABSA Bank Ghana has been offering loans as high as GHS 500,000 to start-ups without taking any form of collateral.
The Director of Business Banking at Absa Bank Ghana, Grace Anim-Yeboah, disclosed this on the on-air series of the Citi Business Festival on the theme “Financing your MSMEs”.
“We have a competitive lending product for SMEs, and it is unsecured lending. What it means is that to borrow you need collateral. We know that for SMEs that is the challenge, so what we have said at Absa Bank is that we are able to give 500,000 cedis without the borrower providing collateral and financials.”
Collaterals are assets or properties given by an individual or entity to a lender in return for a loan.
It serves as a protection against potential loss for the lender if the borrower defaults in his or her payments.
Ms. Anim-Yeboah explained that these loans are usually given to MSMEs with a good track record of financial discipline.
“We look at SMEs behaviour pattern and discipline in running a business. You have to demonstrate that you have a track record of financial discipline. Collateral should not block small businesses. It is totally possible with ABSA Bank. It is a capital investment.”
The Citi Business Festival is an extensive program of business events and on-air activities providing inspiration, business ideas, and information to persons who are starting, building, or growing their businesses.
The virtual business fora are live on Citi TV every Tuesday from 11:00 am to 1:00 pm. The radio on-air series is themed to correspond with the various virtual forums at 9:20 am every weekday for the month of June.
This year’s edition is hinged on five thematic areas, namely:
Week 1: Digital Economy – Building a cashless society and the opportunities for business and job creation.
Week 2: Doing business in Ghana.
Week 3: AgriBusiness – Feeding Ghana with a sound import substitution strategy.
Week 4: Trade – AfCFTA: Opportunities for investment & Job creation in Ghana.
Week 5: Oil and Gas – The opportunities for indigenous businesses.
The Citi Business Festival is sponsored by Absa Bank Ghana with support from IT Consortium and the Ghana Investment Promotion Centre (GIPC).
It is also powered by Citi FM, Citi TV, and Ghana’s most comprehensive business news website, www.citibusinessnews.com.