MicroCredit Business Scheme is an effort to break new ground for giving loans to people with fewer income and insufficient resources.
This loan can help people to start their own businesses and to live a life with dignity and prosperity. It was started with the fund of $5 million Singaporean Dollars, the fund was received from Tote Board. 30 and 40 loans have been approved, so far. Obviously, some people are doing great business with this supportive loan.
However, there are some requirements that every applicant should meet. Officially, a non-Singaporean cannot apply for MicroCredit Business Scheme. Thence, only Singaporeans are allowed or eligible for the scheme.
Obviously, the permanent residents are also not allowed. Second, if an individual Singaporean has an adverse credit record, then there are no chances for the approval of his/her applications. Hence, you must have a good credit history, if you want to apply for the MCBS.
In addition, the income of the applicant must be less than $30,000 per annum. Furthermore, people with less than18 years of age are not eligible for the scheme. You should not forget another important factor at the time of applying. This is a sound business plan.
Without a sound business plan, your application would not be considered.The launch of MicroCredit Business Scheme has been very encouraging for poor and people with meager income.
Several people have applied for the loan and several have been successful. Every segment of society will like a loan with such low interest rates and flexibility of repayments. Although microcredit is not new in many countries but for Singaporeans, it is a new scheme. Definitely, they see it as a good effort of Singaporean government. Clearly, this would increase the ratings of the current government of Singapore.
Although everybody has liked the scheme, yet some groups in society have some reservations about the MicroCredit Business Scheme. The core issue is ineligibility of permanent residents of Singapore. This scheme is specifically designed for Singaporeans.
A government official told that that was the initial stage of the scheme; however, government has a plan to expend the diameter of the scheme to permanent residents in the near future.
However, this justification is not acceptable for some permanent residents because they think they have left their own country and still not being considered as a Singaporeans. However, there are some immigration rules that must be followed to obtain citizen status. Moreover, permanent residents have to spend a certain time in Singapore then they can apply for citizen status. Thence, it seems that government is justifying.