A company which offers small loans to villagers in Samoa, the South Pacific Business Development (SPBD) has launched its operation in Tonga.

During the opening ceremony last week, the President of the SPBD Microfinance Ltd, Greg Casagrande said the beginning of their operation in Tonga marked their 10 years of service in the South Pacific region.

“SPBD is based on the idea that if you give a poor person a very small loan for self employment venture one will get an amazing return on your investment,” he said.

“The borrower will not only work to end their poverty, but they also improve their life of their family and strengthen their community.

The interest rate on loans is 25 per cent.

The SPBD Microfinance Ltd Tonga was registered with the Ministry of Labour, Commerce and Industries on 7 July 2009 and it is wholly-owned by SPBD Microfinance Holdings, a company that was established in the Marshall Islands to provide equity investment for SPBD Foundation in Samoa and the SPBD Microfinance Limited Tonga.

He said that since they entered the region with the establishment of the SPBD Foundation Samoa in 2000 they had disbursed over 27,000 loans to Samoan women amounting to over $30 million Samoan tala.

He said micro entrepreneurs in Samoa had been able to improve their family housing, finance proper education for their children hence set up small businesses.

Ten women’s groups throughout Tongatapu have become SPBD members.

SPBD provides a minimum loan of $1,000 pa’anga to group’s payable in one year with weekly payments of about $24.04. The interest rate is 25 per cent per annum.

Lorisa Kanillas, the Tonga manager said that before receiving a loan applicants become members and do simple business training and group formation.

“The members of the groups get to know each other and support each other in their projects,” she said.

The training provided by SPBD helps with preparation of a budget and loan application.

Polotu Paunga, the Head of Women’s Affairs Department officially opened the new SPBD office, which is located beside the PATCO building on Taufa’ahau Road, Nuku’alofa.