Small and Medium enterprises SMEs, will now have opportunities to use movable assets to acquire loans from commercial banks, under the introduction of the Movable Property Security Interest Act.
Patents and Companies Registration Agency PACRA, Inspector of Companies Lloyd Musonda says, over seven hundred loans have so far been given to SMEs using the new act which was introduced last year.
Mr. Musonda says the movable property Security Interest Act stipulates that SMEs will be allowed to get loans from the banks using personal or movable property as collateral.
Speaking during a one day workshop this morning in Chipata, Mr. Musonda says under the Act, the risk of borrowing has been reduced.
He says due to the reduction of policy rate, his organization expects banks to reduce the rate at which they are lending to SMEs.
Mr. Musonda says SMEs can use vehicles, Agriculture equipment, Agriculture products such as cattle and households goods as collateral.
He says PACRA will be used as registration point for SMEs to start the process of accessing loans using the Movable assets.
The workshop has drawn participants from farmer organizations and some NGO’s, Non-governmental Organizations.