BSP Financial Group Continues to Drive SME Growth Through Loan Products and Financial Literacy Training

BSP Financial Group Limited (BSP) has been driving the growth of small and medium-sized enterprises (SMEs) in the country by providing them with various loan products. According to Daniel Faunt, General Manager for Retail at BSP, the SME Credit Enhancement Scheme loan (CESL) has been gaining a lot of traction since it was rolled out on October 4, 2020.

Faunt said that to date, BSP has funded over K332m in SME Credit Enhancement Scheme Loans, assisting 2,640 SMEs. The equity requirement for the loan was reduced from 30% to 10% in May of 2021, with an increase of funding from K3m to K5m, allowing for greater participation from the SME sector.

In 2022, BSP funded K310m in loans under the SME Credit Enhancement Scheme, which assisted 1,699 SMEs. Overall, BSP has assisted 2,967 SMEs in the past 10 years with the various SME Lending products it offers.

Samuel Mulina, the Head of SME at BSP, said that the SME Retail Lending team continues to deliver in the SME space and continued to fund loans using its own funds under the SME CESL facility, despite exceeding the annual K100m support funding provided by the National Government. In addition to the government-funded Credit Enhancement Loan Scheme, BSP has been offering its own SME Lending Products since 2013, including the Smart Business Loan, Micro Business Loan (Agriculture), Term Business Loan (Working Capital), and Overdrafts.

BSP has assisted more than 141 businesses with K14m from its Smart Business Loan, while 64 customers have been assisted with total funding of over K657,000 through BSP’s Micro Business Loan Products.

Mulina highlighted that BSP not only gives out loans but also provides financial literacy training to its customers. Last November, BSP had 32 SME customers attend its coaching sessions. Developing good business habits, bookkeeping, and regular cash flow deposits into business accounts can help SMEs develop good customer profiles, something that BSP encourages from all SME customers.

BSP remains committed to assisting local businesses in expanding, generating revenue, and creating more employment opportunities through the various SME Loan Products it offers. The bank looks forward to continuing to work with SMEs this year.

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