Access to finance: DBM sets to create more entrepreneurs

Loans up to Rs 250,000 at a preferential rate of 6% per year… This is what the Development Bank of Mauritius is proposing to aspiring entrepreneurs through its ‘Micro Credit Scheme’.  For loans of up to Rs 3 million, SMEs can benefit from the Project Financing Scheme. Between Rs 30 million and Rs 40 million will be disbursed for entrepreneurs. Zoom on the different schemes offered.

After going through a rough patch over recent years, the DBM’s financing are slowly recovering. “We have been able to bring down our indebtedness. In fact, from a debt of Rs 3 billion at the end of 2014, we have been able to reduce it at Rs 475 million. This is indeed a big relief,” says Chand Bhadain, Chairman of the bank’s Board of Directors. Now, the bank has decided to stick with its primary objective: providing loans to Small and Medium Enterprises (SMEs). 

In this context, the DBM has launched a new ‘Scheme’ dedicated especially for aspiring entrepreneurs, the Micro-Credit Scheme. According to the bank’s Acting Managing Director, Bardwazsingh Jokhoo, the ‘Micro-Credit Scheme’ was announced in the Budget speech and the DBM was entrusted with the implementation.

“Therefore, a broad awareness campaign will be conducted across the island to create enthusiasm for loan applications. We will offer loans of up to Rs 250,000 at a preferential rate of 6% per year. This applies to the traditional sectors such as agriculture, fishing, crafts, manufacturing and others,” he says. Mr Jokhoo states that emphasis will be laid on value-added agricultural products. “For now, we expect to disburse Rs 30 million to Rs 40 million per month for loans to entrepreneurs”, he points out. 

Sectors to be financed under Micro Credit scheme:

• Agricultural Sector
• Fishing Sector
• Manufacturing Sector
• Handicraft 
• Artists

Eligibility 

(i) Individuals, Societies or Companies holding valid licences/permits 

(ii) Registered local and export-oriented SMEs 

(iii) Projects recommended by Enterprise Mauritius, BOI, Tourism Authority, SMEDA/MyBiz, NEF, National Women Entrepreneur Council and other relevant institutions, Small businesses holding a Business Registration Card

Security 

(i) Fixed Charge and General Floating Charge for loans exceeding Rs100,000

(ii) General floating charge for loans up to Rs100,000 where the borrower or guarantor is owner of fixed asset.

(iii) ‘Gage sans deplacement’ on vehicle, where applicable

(iv) Pledge of rights to the lease, where applicable

(v) Fixed Charge on Pledge of rights to the lease

(vi)   Any other collateral security acceptable to the DBM

Project Financing Scheme 

Loans which do not fall under the Micro Financing Scheme and which are above Rs 250,000 and up to Rs 3 million will go through the normal Project Financing. The different sectors to be financed under project financing scheme are as follows:

Agriculture, Fishing, Manufacturing, Trade & Services, Transportation, Health, Construction, Tourism, Professionals, ICT, and Green and Renewable Energy.

Security

(i) Fixed Charge and General Floating Charge for loans exceeding Rs100,000

(ii) General floating charge for loans up to Rs100,000 where the borrower or guarantor is owner of fixed asset.

(iii) ‘Gage sans deplacement’ on vehicle, where applicable

(iv) Pledge of rights to the lease, where applicable

(v) Fixed Charge on Pledge of rights to the lease

(vi)   Any other collateral security acceptable to the DBM

Eligibility

(i) Individuals, Societies or Companies holding valid licences/permits 

(ii) Registered local and export-oriented SMEs 

(iii) Projects recommended by Enterprise Mauritius, BOI, Tourism Authority, SMEDA/MyBiz, NEF, National Women Entrepreneur Council and other relevant institutions, Small businesses holding a Business Registration Card

New projects of the DBM 

As announced in the Budget, the DBM intends to be the pioneer in the development of industrial parks across the island. After the implementation of industrial parks in Plaine Lauzun, Coromandel, Vacoas-Phoenix, La Tour Koenig and in Rodrigues, the DBM is in the process to build new industrial parks in Plaine Magnien and Vuillemin. Furthermore, buildings in Coromandel will soon be converted into industrial areas for SMEs. The possibility of building parks in rural areas where there is an entrepreneurial spirit among the residents is also envisaged. After the launching a new branch in Goodlands, the DBM will proceed to the opening of a new branch in Surinam in the upcoming weeks.