Labour Fund and Shamil Bank launch low-profit lending scheme
The first batch of small-and medium-sized enterprises (SMEs) in the Bahrain Kingdom received a BD12.5m as the Labour Fund and Shamil Bank, Bahrain, announced the launch of low-profit loans carrying 4 per cent profits per annum. However, the fund will contribute a similar 4 per cent profit (taking the total to 8 per cent) for beneficiaries of loans ranging between BD10,000 and BD50,000 with a tenure of seven to 10 years.
SME funding under this scheme of Shamil can go as high as BD40m - BD50m depending upon the results of the initial BD12.5m initiative, bank officials told. The fund move is seen as a major initiative towards reviving and consolidating the base of almost 40,000 such enterprises in the Kingdom. Most units in this category are either fund-starved or have not received enough support with hundreds of such entities forced to close down operations in the past.
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