A Guide to SME and MSME Loans in Papua New Guinea

Papua New Guinea’s economic engine thrives on the innovation and drive of small and medium-sized enterprises (SMEs) and micro, small and medium enterprises (MSMEs). These businesses form the backbone of the nation’s economy, creating jobs and fostering growth. But every entrepreneur needs a financial spark to ignite their venture. This guide delves into the world of SME and MSME loans in PNG, exploring options offered by prominent lenders like BSP, Kina Bank, NDB, and NCSL.

BSP SME Credit Enhancement Scheme Loan

BSP’s revamped SME Credit Enhancement Scheme Loan offers a competitive fixed interest rate of 5% for a repayment period of up to 15 years. A significant advantage is the increased maximum loan amount, now reaching PGK 5 million. Borrowers must meet BSP’s standard credit requirements and have a minimum equity contribution of 10%. This loan caters to all SMEs in PNG.

Kina Bank SME Loan

Designed specifically for PNG-owned businesses, Kina Bank’s SME Loan boasts a variable interest rate of 4%. Loan amounts range from PGK 50,000 to PGK 500,000, with unsecured options having a maximum 7-year term. Secured loans offer terms based on the financed asset. Notably, unsecured loans require no collateral, while secured loans leverage an asset for potentially lower interest rates.

NDB MSME Credit Facility

The National Development Bank (NDB) offers incredibly low fixed interest rate loans (4%) with flexible repayment terms through their MSME Credit Facility. This program caters to various sectors with dedicated credit lines like Youth & SME Startup Loans and Women in Business. Loan amounts range from PGK 5,000 to PGK 500,000, with a minimum equity requirement of 20% and a maximum loan term of 20 years.

NCSL SME Loan under Risk Sharing Facility (RSF)

This NCSL program features a risk-sharing mechanism with Bank of PNG. The loan amount is capped at PGK 300,000, with a fixed 15% per annum interest rate and a 48-month repayment term. Notably, a 20% equity contribution from the borrower is mandatory. This loan program is available to all SMEs in PNG.

Don’t forget to download our handy comparison table to easily compare the SME and MSME loan options from BSP, Kina Bank, NDB, and NCSL! This one-page resource will help you visualize the interest rates, loan amounts, repayment terms, and other key details side-by-side, making it easier to identify the loan that best aligns with your business needs.


Securing an SME or MSME loan in PNG is an achievable goal! By understanding your business needs, researching specific loan options, and crafting a compelling application, you’ll be well on your way to transforming your vision into a thriving enterprise. Remember, this guide offers a starting point. Always visit the official websites of the respective banks or contact them directly for the most up-to-date information and to determine the loan that best suits your specific business goals. With the right financial fuel, your entrepreneurial journey in PNG can take flight!

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