CABS to review SMEs loan fund

Business Correspondent
CABS is set to review upwards loans availed to players in the Small to Medium Enterprises sector from $50 000, an official has said.
Addressing local businesspeople attending a ZimTrade business training workshop last week, CABS head of corporate Institutional Banking Mr Cecil Ndoro said CABS was planning to increase the loan fund upwards.

“We have a three year SMEs funding to assist the SMES.  The fund is at a maximum loan amount of $50 000 but we are currently reviewing it so that it can create capacity for those who want to acquire more than,” said Mr Ndoro.

Mr Ndoro said they also had other medium to term long loans meant to try and resuscitate the operations of companies that demonstrate the ability to recover.

The bank official said the $40 million Distressed Industries and Marginalised Areas Fund (Dimaf) was going on well and urged companies to come and apply.

“We are happy with the progress of Dimaf. It has been going on well. I want to encourage those of you who would want to access that facility to contact us anytime,” he said.

Mr Ndoro said the $10 million Youth Fund  was also available to enable youths start their own businesses.
“We say the future of this country lies in the youth. We have $10 million fund to try and assist our youth that want to do business,” he said.

Mr Ndoro said the interest on this fund was manageable.   It has been reported that lack of funds is hampering the progress of SMEs.
Most SMEs are faced with many challenges in accessing funding or loan facilities from financial institutions because of a number of reasons mainly to do with collateral.