Securing loans from financial institutions comes with greater responsibilities, especially making timely loan repayments. Balancing this with savings and investments leads to sustainable business opportunities.
This is the advice by Morea Sika, a 54-year-old SME businesswoman from Menumsore Village in the Tutuwe Trust region, North Fly District.
As a single mother raising 6 children, Mrs. Sika had to find ways to make ends meet.
She already had a successful poultry business and was receiving profitable sales from her vegetable gardens but she was thinking of bigger income-generating activities.
This was realised through the opportunity provided by OTDF and the National Development Bank, in supporting Tutuwe Women’s Association SME Program.
In 2019 Mrs. Sika secured a K1, 500 loan under the Women’s Credit Scheme to buy a grass-cutter, which she hired out for K50 per day.
Consistent repayments and savings from the hire, poultry and vegetable sales grew her funds to K54, 000.
“Displa moni em maket moni blo mi. Mi sevim taim mi salim kakaruk na garden kaikai long market.”
Using her savings as equity, Mrs. Sika applied for and was granted a K86,000 loan from NDB to buy a bus.
Mrs. Sika intends to register the bus as a PMV to service the highway villages, and to put on hire, with priority to the women’s associations.
She is optimistic at being able to repay the loan, and use any extra money to support her family.
“Tenkyu tru, bifo mi no save kisim loan. Ol narapla meri save kisim, mi nogat. Yupla opim dua, nau mi ken benefit.”