Papua New Guinea’s newest finance company is offering personal loans to borrowers for only twenty five percent (25%) interest to its customers saying we must take back the financial sector.
Faith-G Credit Finance and Investing Limited (FGIFL) which is wholly owned by Papua New Guineans aims to one day help the people overcome ‘financial slavery’ brought on by consumer finance (personal) loans from the banks and financial institutions in the country.
Managing Director of FGCFIL Mr. Texas Allan says the aim of this finance company is to provide relief and achieve financial freedom for Papua New Guineas one day.
“Our people, especially public servants in the country are being held to ransom by the banks and financial institutions that hike their daily interests on the borrowings on first default and cause ‘financial chaos’ for the average family,” said the Managing Director.
“As a result, workers have turned to the black market or “street money sellers” for money needed for daily sustenance who charge them 50% or more setting them off on a ‘vicious cycle of borrowing” which never ends and lands borrowers into poverty.”
“And also, many of the lenders have become ‘loan sharks’ overtime and are driving the average income earners and so many young well to do Papua New Guineans into poverty,” said the entrepreneur who is the owner of the finance company that has over 30,000 customers who have become victims to ‘loan sharks’ who demand everything from Bank Cards to personal property such as cars and household goods from defaulters.
Finance companies in the country are offering personal finance loans at high interest rates from 35% upwards due to hyper demand and when defaulted borrowers are being enslaved to make repayments for the good part of their working lives. This is unfair business practice.
Private market research conducted for purposes of establishing the finance company indicate that over 20,000 people, low income earners (vendors) in the National Capital District markets alone need money for sustenance. The borrowing needs of these people are valued at K200.00 to K2, 000.00, per loan cycle which indicates there is hyper demand for consumer loans of over K40 million in Port Moresby city alone.
BSP Finance Limited backed that research in an article last year that home-bankers were keeping more money at home, which money should be banked in order to cash up the consumer finance industry. The research that many of these home-bankers are afraid of keeping money at home for fear of losing money due to liquidity issues in the country faced by the Bank of Papua New Guinea.
“This is a really serious problem. We cannot hide from it anymore. Soon or later the cover is going to burst and there will be serious consequences for the community and the country.”
“This situation has led to petty corruption in government offices which leads to higher level official corruption to meet their financial needs,” the Chairman warned.
Mr. Allan said therefore the government needs to intervene and subsidies the consumer loan finance sector so that working families can help themselves for low interest loans.
“The government has spent so much money on infrastructure which is good but our people have no money to utilize these infrastructures usefully and build their lives. History shows people build cities and nations and financially and emotionally bankrupt citizens will remain in poverty”
Papua New Guinea is blessed with abundant resources but our people do not have enough money to undertake development activities for unscrupulous aliens will continue to cheat us.”
Mr. Allan praised the current government for introducing the SME program under Prime Minister James Marape’s “Take Back PNG Policy,” but the moneymen have hijacked the funds with the National Development Bank Ltd (NDB) and BSP Limited.
“The Faith-G Credit Finance and Investing Ltd Company has a mission to eradicate poverty in the country by achieving financial freedom for our borrowers slowly but surely we will overcome it.”
Our best product is a loan of K100.00 to K1, 000.00 repayable in one fortnight with 25% interest and defaulters will be given grace period for repayment with the simple interest and without accumulative interest charge and offered only if applicable under the circumstances.
The highest loan amount on offer is K10, 000.00 repayable with K2500.00 interest in 12 months.
The Managing Director said our finance company is targeting the 20,000 consumers discovered through the research survey who need over K40 million in consumer finance per loan cycle. We do not have the cash volume to lend to everyone and therefore ask the government of the day to assist the lender in this project to free Papua New Guineans from financial slavery. We are offering loans for only 25% which translates into a saving of up to 50% for the borrower upon loan.”
Mr. Allan has issued this Press Statement prior to the official launching of the Faith-G Credit Finance and Investing Ltd and its new associate company, Faith-G Credit Investment Finance Ltd company, which will happen as soon as possible.
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