Merchant Finance Limited (MFL), in collaboration with the Asian Development Bank (ADB), has introduced a new loan product specifically designed for women Micro, Small, and Medium Enterprises (MSMEs). This product, valued at USD 4 million, was launched yesterday at the Suva Business Center.
The primary goal of this new offering is to improve access to financing for women-owned and led small and medium-sized businesses in Fiji.
“When we examined the market, we identified two underserved segments: indigenous-owned businesses and women-owned businesses,” said Merchant Finance CEO Veilawa Rereiwasaliwa.
He pointed out three key challenges commonly faced by female-owned businesses: insufficient loan amounts to scale up, higher credit costs from financial providers, and difficulty accessing finance.
The new MSME loan product aims to be a game-changer for women entrepreneurs by offering:
- A competitive 9.49 percent interest rate on reducing balance
- The RBF Government Guarantee scheme, which can be used as part of security by eligible customers
- A loan maximum of $500,000
- A loan term of up to seven years
- Up to 200 percent loan-to-security value ratio for women-owned businesses
- Agricultural lease land, heavy machinery, and equipment can be used as security, in addition to the usual accepted securities
Aaron Batten, regional director of the ADB’s Pacific Sub-Regional Office in Fiji, stated that the new product highlights Merchant Finance’s commitment to supporting women MSMEs in the country.
“The new MFL products being launched today can help address barriers and unlock the potential of women entrepreneurs to create wealth for themselves, their families, and support the long-term growth of the Fijian economy,” said Mr. Batten.
“Our collaboration with Merchant Finance is rooted in a shared vision to create lasting, positive change for women entrepreneurs.” he added.
