By Francis Akinnodi

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Over a thousand Small and Medium-sized Enterprises (SMEs) in Ondo State will benefit from the N5 billion single-digit interest rate loan it secured from Sterling Bank.

Ondo State Manager, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Tomi Ikuomola disclosed this in a chat with The Hope.

It was gathered that SMEDAN has started accessing the N5 billion single-digit interest rate loan.

According to Ondo State SMEDAN manager, Tomi Ikuomola, the beneficiaries are numerous; can’t be less than a thousand small and medium enterprises.

“Many have not been able to meet the major requirements, which include having a company account and running it for at least six months,” he told The Hope.

However, SMEDAN said some SMEs are facing hurdles in meeting the bank’s eligibility criteria, and support is being offered to help overcome these challenges.

According to Director General of SMEDAN, Charles Odii,said the bank attributed the difficulties to issues with formalisation and other factors affecting eligibility.

“I met with Sterling Bank MD/CEO, and other officials to discuss the SMEDAN-Sterling loan programme, which offers ₦5 billion to small businesses at a single-digit interest rate to increase access to finance.

“While disbursements have been made and are ongoing, I raised concerns we received about the application process and difficulties some have faced in reaching the disbursement stage.

“The bank explained issues with formalization and other factors that prevented some businesses from meeting their eligibility criteria.

“We agreed on an action plan to address this, including continuous updates to the digital platform for a seamless experience, support for applicants who failed the eligibility test to address the responsible factors, and providing clear answers to applicants’ questions online or at bank branches.”

Meanwhile, the Ondo State manager said,”Our shared goal remains to support small businesses and ensure the loan opportunity is fully maximised for business growth.”

He said the agency will contact successful applicants to monitor their progress and offer tailored support to ensure the opportunity is fully leveraged.