Muscat: Responding to the call of a new breed of Omani entrepreneurs that financial institutions should enhance lending volumes to small and medium enterprises (SMEs), which are engines of economic growth in any country, the National Bank of Oman (NBO) yesterday announced the launch of Tijarati (small business unit) loan product.
At a press conference held yesterday at its MBD branch, Harsh Munjal, general manager (Retail, private and overseas banking) of National Bank of Oman, said that the Tijarati -" small business unit loan product - will cater exclusively to the requirements of small businesses, with ease of process and peace of mind.
Observed Asif Redha Sabir Al Radhvi, AGM - head of SME business division (retail and private banking group), NBO, "While small enterprises propel economic activity with their ability to innovate and employ locals, the biggest challenge faced by this growing segment is easy access to finance.
And in an effort to augment easy credit flow to the SME segment, the NBO's Tijarati banking offers flexible and convenient business loans for small established companies which need immediate finance for expansion, working capital and business line diversifications.-
The key features of this product is the interest rate which is as low as 6.5 per cent per annum with an affordable instalment plan for the repayment of the loan.
The loan will be offered to business entities owned or managed by Omani nationals who are running their businesses for at least two years. The minimum loan amount is RO5,000 and the maximum loan is fixed at RO50,000, with repayment periods ranging from 1 to 5 years.
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There is no requirement for any audited financial statements neither does the bank require customers to provide guarantors to avail the loan.
In addition to the above features, NBO will also provide insurance facilities to the customer for life and permanent total disability to cover the loan amount in the event of any sudden set back faced by the owner of the company.
According to Asif Redha, this facility will be made available at all the 69 branches of NBO. Tijarati offers programmed lending up to RO50,000 to small businesses and grants loan and other credit/trade facilities up to RO300,000 at very competitive terms.
Abdul Qadir Ahmed, assistant general manager and head of branch sales and distribution, NBO, said, "Increased funding by the banking sector can support the SMEs grow their businesses faster and this is what the NBO believes in. We expect that the SME sector will continue to drive Oman's economic growth and, in doing so, positively impact industrial output, employment and wealth creation. We have trained our personnel on SME aspects and they are all geared up to support and guide the entrepreneurs.-
Harshdeep Munjal, further noted, "NBO is cognisant that small businesses are crucial to the economic growth, employment and development of Oman as well as essential for a competitive and efficient market,-
"We recognise the specific need of SME customers in the region in taking their business forward and are hence delighted to launch 'Tijarati' to help them to expand, maximise their opportunities and reach their business goals faster,- added Asif Redha.
Oman is home to around 121,000 SMEs (those SMEs which employ less than 100 people) constituting more than 90 per cent of the economy activity.
© Times of Oman 2012
