Yangoru-Saussia District Mama Bank members can start applying for loans

Members of the Women’s Microbank in Yangoru-Saussia District can start applying for loans from the bank starting this week.

A Memorandum of Agreement [MOA] between the Women's Microbank and the Yangoru Saussia District Development Authority was signed today and this agreement now establishes a new loan scheme supported by a credit guarantee plan.

The Women's Microbank has been set up in Yangoru Saussia and boasts 1,200 customers and growing daily.

Local MP and Minister for International Trade and Investment Richard Maru at the signing today said a complimentary office space has been given for the Mama Bank to operate out of including a brand new vehicle that will help to move the bank workers to remote areas.

“Yangoru Saussia has a population of over 100,000, and is the primary cocoa-producing district in Papua New Guinea, generating up to 100 million annually,” Mr Maru said

“Despite the significant cash flow within the district, many residents do not utilize banks and opt to keep their money at home. Under the MOA we are about to sign today, individuals can acquire loans for business purposes, school fees, home construction, or any other legitimate reason defined by the bank”, he further said.

The requirement to qualify for a loan is to first save money. It was made clear that if members of the bank do not show a culture of savings or do not have money saved in their accounts, no loan would be approved.

The maximum initial loan amount is 10,000 kina, with a minimum of 500 kina and if a member chooses to borrow 1,000 kina, you must first save at least 500 kina.

Unlike commercial banks that mandate collateral such as property, in this case, the member's savings act as their security. By depositing 500 kina, the district will also contribute 500 kina to secure the member's loan within the 500 kina the DDA will provide.

Mr Maru said if a customer fails to make loan payments, the bank will utilize their 500 kina savings and the district's 500 kina security deposit to repay the loan, and the bank bears no risk.

The minister also announced that the district's mobile barracks will be completed by the end of October this year, prioritizing security in the district.

The District Development Authority is also exploring opportunities in new markets, to establish Yangoru Saussia as a major town and third town in the district and province.

“Our goal is to establish a multi-million market and expand market infrastructure throughout the Yangoru-Saussia District.

“We're encouraging mothers to bring their produce to the market and sell it, to become an economic powerhouse.

“We are grateful for the partnership with People's Microbank and encourage people to start applying for loans starting today”, Mr Maru said.