NBO Launches Small Business Loan Product
National Bank of Oman, to support the growth plans of small scale business firms, has launched a distinctive and attractive business financing product — “Tijarati, Small Business Unit Loan Product”.
NBO’s Tijarati Banking which offers flexible and convenient business loans for small established companies, who need immediate finance for expansion, working capital, and business line diversifications, is expected to cater exclusively to the requirements of small businesses, with ease of process and peace of mind.
The key feature of this product is the interest rate which is as low as 6. 5 per cent per annum with an affordable instalment plan for the repayment of the loan.
The loan will be offered to business entities owned or managed by Omani Nationals who are running their businesses for at least two years and above. The minimum loan amount is RO 5,000 and the maximum loan amount is RO 50,000 with repayment periods from 1 to 5 years. There is no requirement for any audited financial statements neither does the bank require customers to provide guarantors to avail the loan.
In addition to the above features, NBO will also provide insurance facilities to the customer for life and permanent total disability to cover the loan amount in the event of any sudden set back faced by the owner of the company.
Harshdeep Munjal, NBO’s General Manager Retail, Private and Overseas Banking, commenting on the occasion said: “In keeping with His Majesty’s visionary leadership and directives, the bank is committed towards supporting the growth of small businesses and has therefore developed this customised product. NBO is cognizant that small businesses are crucial to the economic growth, employment and development of Oman as well as essential for a competitive and efficient market”.
The Sultanate’s economy has grown rapidly over the past couple of years, with the industrial sector registering impressive growth year on year. As a result, there is a huge potential for small and medium sized companies to support this industrial growth.
The small companies are major contributors to the GDP and employment, however, their financial needs are underserved and therefore their growth is restricted. Additionally, wherever financing is available, it is unfortunately out of reach because of short payback periods and excessive collateral / documentation requirements.
Asif Redha, NBO’s AGM and Head of SME, further added: “ We recognise the specific need of SME customers in the region in taking their business forward and are hence delighted to launch ‘Tijarati’, to help them to expand, maximise their opportunities and reach their business goals faster.”
Omanobserver
