SUVA, FIJI (13 February 2025) — Merchant Finance Pte Limited (“Merchant Finance”) is thrilled to announce the launch of its newly developed, innovative Micro, Small and Medium-sized Enterprises (MSME) Loan Product. Developed in partnership with the Asian Development Bank (ADB), this product addresses the unique challenges faced by women entrepreneurs and aims to boost their participation in the economy and drive sustainable growth.
The CEO Merchant Finance Pte Limited, Veilawa Rereiwasaliwa and ADB Regional Director of ADB’s Pacific Subregional Office in Fiji, Aaron Batten spoke at the event.
In December 2024, ADB signed an agreement with Merchant Finance to boost access to finance for women’s businesses in Fiji. Notably, 75% of the proceeds will be dedicated to empowering women-owned and led SMEs.
“Our collaboration with Merchant Finance is grounded in a shared vision to create lasting, positive change for women entrepreneurs. The launch of this loan product is a reflection of the dedication Merchant Finance has demonstrated to serving women-owned SMEs in Fiji,” said Mr. Batten.
“The new loan product marks a milestone in the market, showcasing our commitment to delivering innovative financial solutions. By providing tailored financial products, we can help unlock the potential of women entrepreneurs in Fiji,” said Mr. Rereiwasaliwa.
Women play a vital role in Fiji’s economy yet women-owned MSMEs only account for 19% of MSMEs in Fiji, with over 5,500 registered women-owned businesses. Additionally, there are 18,742 self-employed women and 4,650 women working in the handicraft space. Despite their significant contribution to the economy, there remains a pressing need for more diverse women-centred financial products.
Women entrepreneurs often face barriers such as the absence of a formal business plan, lack of ownership of land and property that can be used as collateral, the intimidation often felt when dealing with formal financial institutions, especially for first-time borrowers, and concerns about the affordability of fees and interest rates. These challenges disproportionately affect women-owned MSMEs, limiting their ability to grow their business and contribute fully to Fiji’s economic development.
With these barriers in mind, Merchant Finance has developed the MSME loan product to fill in the critical gap that women-owned MSMEs face when accessing financial solutions that cater to their unique needs.
The new MSME Loan product is a game-changer, offering women entrepreneurs a suite of attractive features:
- Competitive interest rate of 9.49% on reducing balance
- Reserve Bank of Fiji (RBF) Government Guarantee scheme can be used as part of security by eligible customers
- Loans up to $500,000
- Loan Term up to 7 years
- Up to 200% loan to security value ratio for women-owned businesses
- Agricultural lease land, Heavy machineries / equipment can be used as security apart from the normal securities that are usually accepted.
To further support women-owned MSMEs, Merchant Finance has established the Marama Finance Team, a specialized unit dedicated to serving women-owned businesses. The team provides personalized services that ensure women entrepreneurs have the necessary tools and knowledge to informatively participate in the economy.
Merchant Finance’s MSME Loan product represents a significant step forward in empowering women-owned MSMEs in Fiji. This product is key in addressing existing barriers that continue to hinder women-owned MSMEs from accessing and utilizing financial services effectively. By providing tailored financial solutions, and offering personalized support, Merchant Finance is committed to driving economic growth and becoming the preferred financial service provider in Fiji.
Merchant Finance is the largest of 3 non-bank licensed credit institutions in Fiji. Founded in 1986 in Suva, Merchant Finance has grown to include multiple branches across Fiji, including Suva, Nadi, Lautoka, and Labasa.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.
Merchant Finance wishes to clarify and correct information recently reported in media coverage regarding the interest rate for its MSME Loan product. The precise interest rate for this product is 9.49%, not 8.99% as previously stated.
Additionally, Merchant Finance acknowledges that as of today, a few commercial banks offer better interest rates on their MSME products. Merchant Finance remains committed to transparency and ensuring accurate information is communicated to its valued customers and stakeholders and we apologize for any inconvenience caused due to the matter above.
