Kudus gov't offers non-collateral loans to SME's

Kudus gov't offers non-collateral loans to SME's

SME's business activity in Kudus Regency, Central JAva. (Government of Kudus Regency)

Kudus, Central Java (ANTARA News) - The Government of Kudus Regency in Central Java Province offers a non-collateral loan (KUP) scheme to 13,000 micro, small and medium enterprises in various subdistricts to enable them to develop their businesses, a local government official said.

    

"Following the availability of this KUP scheme, the revolving fund program has no longer existed,"  Acting Head of the Kudus District Office for Industry, Cooperatives and Micro, Small and Medium Enterprises Bambang Waluyo said here Tuesday.

    

The revolving fund program, whose budget totaled Rp2.4 billion, began in 2011 but it was terminated after running for three years. It was then substituted by the KUP scheme, he said.

    

This newly-launched program enables local micro-, small-and medium-scale entrepreneurs (UMKMs), who have run their businesses for at least one year, to get the productive loans without providing collateral assets as often required by conventional banks, he said.

    

In order to obtain this scheme, the applicants need to meet such requirements as returning the loans on time. The applicants' commitment is required to prevent other applicants from getting late disbursements, he said.

    

The successful applicants are given, red, blue, green and silver cards. For the red card holders, they are given the maximum limit of loans at Rp5 million while the maximum amounts of loans for the blue, green and silver card holders are Rp10 million, Rp15 million, and Rp20 million respectively.

    

The tenor for the silver card holders is 36 months, he said adding that the KUP scheme was initiated by Head of Kudus District Musthofa and officially launched on March 10, 2015.

    

Touched on the UMKMs, whose names are not yet available in the previous data, he said they can still send their application for obtaining the KUP scheme through a gradual process.

    

The process begins at the village and subdistrict administrative levels, and ends at the Industry, Cooperatives and Micro, Small and Medium Enterprises office, he said.

    

Each applicant should have recommendations from the offices of industry, cooperatives and micro, small and medium enterprises; trade and market management; agriculture, forestry, and fisheries; workforce and transmigration; as well as people and women's empowerment and family planning.

    

"We welcome them. If they get difficulties, please come to the related offices to get application forms," Waluyo said.

    

All applicants would be examined, and those having non-performing loans were not allowed to apply for the KUP scheme.


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