Kosi Yankey Ayeh, Executive Director for the National Board for Small Scale Industries (NBSSI), has said that the 5% interest rate per annum on loans placed on Small and Medium Enterprises (SMEs) as part of government’s intervention to support businesses that may be forced to fold in the wake of the Coronavirus pandemic, is the best offer to give.
According to the NBSSI, the average tenure for repayment of the loan, which will be between a 2 to 3-year period, will be feasible considering the current market and times.
Speaking on an Accra-based FM station on Monday, May 18, 2020, Kosi Yankey Ayeh said “This is actually a good interest rate considering what is on the market and it is important to note that this interest rate was selected because we are in an emergency situation where people do not have access to credit facilities so this will become a relief to support businesses to do better and be sustainable their operations at a time like this.”
Kosi Yankey Ayeh, earlier on, announced the introduction of an online portal for small scale businesses to file their application for the loan to be disbursed.
Many experts in the industry have argued that the modalities for the disbursement of the loans be set out properly and devoid of partisan politics so as to achieve the intended goal for SMEs to scale up in the wake of the COVID-19 outbreak.