The SME Development Bank and the Bank for Agriculture and Agricultural Co-operatives yesterday agreed to offer financial support under the government's asset capitalisation programme.
The asset capitalisation programme aims to increase the ability of people to access capital using intangible assets such as land rights documents, intellectual property or leases as collateral against loans.
The two state banks will offer loans to individuals holding lease contracts for public land with the Treasury Department. The SME Bank will focus on small business loans, while the BAAC would support agricultural-related activities.
The Treasury Department, which oversees state properties nationwide, has some 60,000 lease contracts outstanding for some 90,000 rai nationwide. Of this amount, 41,000 contracts are for residences, 12,000 for buildings and 3,600 for agriculture.
