Micro Financing

A new age; a new way of battling poverty has surfaced to combat hardship here in the Marshall Islands. Currently, the Bank of Marshall Islands is operating its Microloan program funded by Taiwan ICDF through the government. According to the bank’s President & CEO Patrick Chen, the program officially started on September 1, 2006.

The Micro Credit fund policy states that the primary purpose of making a microloan is to accelerate development of the country, and to improve the wellbeing of the people living in the rural areas of the Marshall Islands. The projects to be financed include, but are not limited to agriculture, food processing, commerce, fishing, manufacturing, transportation, handicraft, tourism and services. The two types of loans provide for equipment or working capital for each borrower. All Microloans must conform to the lending provisions of The Banking Act of 1987, its terms and conditions agreed between Bank of Marshall Islands and the Marshall Islands Development Bank.

Features

• Loan fee is 2%
• Interest rate is 7%
• Maximum term is 5 years