…. maximum threshold now set at GH₵1m
By Elizabeth PUNSU, Kumasi
In its submission to support the growth of Micro Small and Medium Enterprises, MSME of the Ghanaian economy, Amenfiman Rural Bank PLC, Ghana’s premium rural bank at Wasa Akropong in the Amenfi East Municipality in the Western North Region has upgraded its collateral-free loan’s maximum threshold to GH₵1 million.
The product which was launched under the brand name AMERB MSME Donkomi Promotion in August last year in Kumasi had an initial maximum threshold of GH₵ 400,000 which sought to support approximately 25, 000 MSMEs especially small and micro businesses earmarking GHS 500,000 for disbursement.
With recovery rate hovering around hundred per cent coupled with customers’ loyalty and prompt repayment schedules, there has been a demand to increase the threshold from GHS 400,000 to GH₵1 million.
By this, Amenfiman Rural Bank, has officially launched the upgraded version of the AMERB MSME Donkomi Promotion labelled ‘AMERB MSME Donkomi Plus’ with a maximum threshold from GH₵400,000 to GHS 1 million but at a reduced interest rate and without any collateral.
The initiative aims to alleviate financial barriers for small business owners, particularly targeting those who lack traditional collateral to access credit to expand their business.
The Chief Executive Officer of the Bank Dr. Alexander Asmah in his opening remarks at the launch, mentioned that one of the core challenges faced by micro and small business owners in Ghana is the difficulty in accessing loans due to stringent collateral requirements.
To address this issue, Amenfiman Bank’s AMERB MSME Donkomi Promotion which has been upgraded and will provide unsecure loans of up to GH₵1 million which will allow business owners to obtain credit without the need for traditional collateral such as landed property.
“Many Ghanaians, particularly women, want to work and grow their businesses but struggle with accessing funding due to collateral constraints. We are breaking down these barriers by offering unsecured lending, which will significantly ease the financial burden on small business owners,” Dr. Asmah stressed.
This initiative came about after the bank had surpassed its GH₵1 billion deposit target six months ahead of schedule. The impressive milestone was achieved through a concerted effort to onboard new customers and mobilise funds from existing loyal clients.
According to him, Amenfiman Rural Bank has been actively involved in supporting micro, small, and medium-sized enterprises (MSMEs) and farmers over the years. Therefore, with such liquidity at hand it is only prudent to re-invest in its customers and small businesses in the country to ensure the economy grows.
The AMERB MSME Donkomi product is designed to support both micro and small businesses, with a particular focus on empowering women and youth-led enterprises. Beneficiaries of the program will receive daily visits from Amenfiman Rural Bank’s sales executives, who will collect loan repayments on a daily basis. Businesses will be required to contribute at least 20% of their own capital in addition to the bank’s loan, ensuring they have a vested interest in their growth and success.
Dr. Asmah did indicate that the vision for this funding is not just providing capital; but building a framework for sustainable growth and financial empowerment. With a goal to see these businesses flourish and contribute to a thriving economy.
As Amenfiman Rural Bank continues to pave the way for innovative financial solutions, its latest initiative marks a significant step in enhancing access to capital for the country’s vibrant small business sector.
Some business owners who were at the launch took turns to praise the bank for their financial support over the years and also welcome this initiative saying, it will go a long way to help small businesses in the country.
In another development, the Bank held an engaging and heartfelt gathering aimed at appreciating its loyal customers. The event brought together valued clients, bank staff, and key stakeholders in a day filled with gratitude, recognition and open dialogue.
The primary objective of the event was to express the bank’s deep appreciation for the unwavering support and loyalty demonstrated by its customers over the years. In his opening remarks, Dr Alex Asmah, emphasized the importance of customer loyalty in the bank’s growth and success.
“We are here today to honour and celebrate you, our loyal customers, whose trust and continued patronage have been the cornerstone of our success. This gathering is not only to show our appreciation but also to listen to your concerns and ensure we serve you better” Dr Asmah stressed.
The climax of the customer engagement was the presentation of awards, where deserving customers were recognized for their loyalty and contributions to the bank’s success. Awards and gift items, including plaques, and branded merchandise, were presented to customers who had shown exceptional commitment to the bank.
Amenfiman Rural Bank remains committed to its mission of providing excellent financial services and fostering strong relationships with its customers. The success of this customer appreciation event is a testament to the bank’s dedication to its clients and its continuous efforts to improve and innovate.
Meanwhile the ARB Apex Bank PLC, the mini regulator that gives support services to the 147 rural and community banks in Ghana has highly commended Amenfiman Rural Bank for their sterling operational performance and growth within the competitive banking environment.
The bank’s profit increased by 226.99% from GH₵ 35.7 million in 2023 to GH₵ 116.7million in 2024. This according to ARB Apex Bank suggests that the bank has good growth prospects which will result in substantial financial benefits to the esteemed shareholders and customers.
The Bank’s deposit also doubled GH₵ 768.74 million in 2023 to GH₵ 1.55 billion in 2024.This was due to the board and management’s foresight and strengthened resources mobilisation in increasing the deposits.
