Equity bank has introduced loans to small enterprises known as ‘Fanikisha Machinga’ where food venors and other small business people will access loans without collateral in their groups.
Speaking at the familiarisation of the new product to small enterprises of Dar es Salaam and Coast Region market leaders, Equity Bank Executive Director, Esther Kitoka, said the product intends to elevate small business.
She said many financial institutions look for big business and they don’t regard small business that’s why they have decided to come up with a new product for them to grow and nourish their business.
“To us, this is a marginalised group because they don’t need to have collateral to access loans, so our products intend to boost them so that they can access the loan,” she said.
The Director said Equity bank believes that this group is important for the country’s economic growth if they are elevated and become big business because they will pay taxes and different charges to contribute to the economy.
The Head of Commercial Department Isabella Maganga said she believes that many small businesses in the country will benefit from their new product and they have let them together so that they can be familiar with their new product.
She said Dar es Salaam City is estimated to have over 45 markets so Equity bank will struggle to reach the place and educate them about the new product for they need to access loans through their formed groups.
“Markets are an important place where everyone must go to a shop that’s why our bank decided to consider them and come up with this product which will be helpful to them,” she said.
One of the small food vendors at Ferry Market, Mwasi Abdalah commended the bank initiatives towards helping the small enterprises saying that the loans will help them to grow and become big business.
She said many of small business don’t grow because they cannot access loans due to taught conditions including collateral which most of them they don’t have.
“We thank Equity bank for remembering this group is a blessing because we are disregarded by other financial institutions when we need loans we are told to bring collateral and we are very small vendors to have collateral,” she said.