Poor families to get cheap loans<\/p>\n
JAKARTA (JP): The government launched on Tuesday two schemes
\nof cheap credits to help poor families, small businesses and
\ncooperatives survive the year-long economic crisis.<\/p>\n
Director General of Financing and Development Services
\nDeswandhy Agusman said that the two micro credit schemes, called
\nCredit for Small and Medium Entrepreneurs (KPKM) and Credit for
\nTechnology Application in Alleviating Poverty (KPTTG-Taskin) will
\nbe given to small and medium businesses and poor families at an
\nannual interest rate of 16 percent.<\/p>\n
\"Small businesses and poor families are not required to have
\ncollateral to obtain the loans, which will range from Rp 1
\nmillion to Rp 5 million,\" Deswandhy said in a launching ceremony
\nfor the credit schemes, part of 16 heavily subsidized credit
\nschemes announced by the government last month.<\/p>\n
Deswandhy said that the government has appointed state Bank
\nNegara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) to channel
\nthe loans.<\/p>\n
Deswandhy said that the loans issued under the KPTTG-Taskin
\nscheme would be also given to self-help groups, groups of poor
\nfamilies who are making productive efforts to lift themselves out
\nof poverty.<\/p>\n
He said that the government has allocated Rp 100 million for
\nthe KPTTG-Taskin scheme alone, which will be given as working
\ncapital or investment loans.<\/p>\n
The repayment for working capital loans under the scheme will
\nbe due in one year, with a grace period of three months, while
\nthe repayment of investment loans will fall due in three years
\nwith a grace period of one year, he said.<\/p>\n
\"If we can help small businesses in easing their capital
\nproblems, I believe that we might further alleviate poverty,\"
\nDeswandhy said.<\/p>\n
In October, the government announced that it had allocated at
\nleast Rp 10 trillion (US$1.3 billion) to fund 16 micro credit
\nschemes designed to help SMEs and cooperatives.<\/p>\n
Loans issued under the schemes come at interest rates of
\nbetween 6 and 16 percent, compared to about 50 percent for normal
\ncommercial loans. The loans are offered through commercial banks
\nwith the help of non-governmental organizations across the
\ncountry.<\/p>\n
The schemes cover almost all sectors of the economy, including
\nfarming, fisheries, housing, trade and commerce, and poultry
\nfarming.<\/p>\n
Loans available range from Rp 5 million to Rp 3 billion, with
\nrepayment periods varying from between one and 15 years.<\/p>\n
Working capital loans are limited to Rp 5 million, with
\nrepayment due within one year. For investment loans, the limit
\nhas been set at Rp 25 million, with repayment due within five
\nyears.<\/p>\n
Deswandhy said that so far the government has launched five
\nmicro credit schemes including the two recently-launched schemes
\nwith allocated funds of Rp 1.5 trillion.<\/p>\n
Meanwhile, Minister of Cooperatives and Small and Medium
\nEnterprises Adi Sasono said separately on Tuesday that the
\ngovernment has targeted the disbursement of Rp 8.2 trillion in
\nfarming loans until September next year.<\/p>\n
He said that the government allocated Rp 1.8 trillion in
\nfarming loans last month and the amount is expected to reach Rp 4
\ntrillion by the end of the current planting season which would
\nfall in March or April next year.<\/p>\n
\"Over sixty percent of the farming loans will be distributed
\nto farm laborers,\" he said on the sidelines of a seminar.
\n(gis\/das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/poor-families-to-get-cheap-loans-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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