The Eastern Regional Branch of the Association of Small Scale Industries (ASSI), has called for a dialogue to streamline conditions for the disbursement of the Social Investment Fund (SIF) loan.

The loan is under the Urban Small Scale Enterprise Development Project and is being promoted by the SIF through the banks.

Speaking to the GNA in Koforidua, Mr Alfred Yaw Kissi, Eastern Regional Secretary of ASSI, said the South Akim Rural Bank, which is in charge of the disbursement of the loans, is operating the project on the same basis it operated other loans of the Bank.

He said this makes it difficult for Small and Medium Scale Enterprises (SMEs) to obtain financial support from the banks.

According to him, if the project is meant to increase access to financial support for SMEs, then the conditions of granting loans needs to be repackaged to enable SMEs achieve the necessary economic impact the project was expected to achieve.

He said apart from pre-qualification conditions, beneficiaries of the loan are also expected to meet other conditions of the bank including provision of collateral security, two guarantors and to save a percentage of the loan with the bank, with an interest rate of over 28 per cent.

He added that the procedure is complicated and if not amended would deny many of its members the ability to access the funds.


Source: GNA