Qatar Central Bank eases access to financing for MSMEs through POS revenues
<p>Doha, Qatar: In line with the Third Financial Sector Strategy, and in support of financial inclusion in the State, Qatar Central Bank (QCB) has issued regulations on financing Micro, Small and Medium Enterprises (MSMEs) against point-of-sale (POS) revenues and verified electronic payment revenues within the State of Qatar.</p> <p>These regulations help encourage MSMEs to expand their business…
Doha, Qatar: The Qatar Central Bank has relaxed regulations to make it easier for Micro, Small and Medium Enterprises (MSMEs) to obtain financing by using their point-of-sale (POS) revenues and verified electronic payment revenues. This move aligns with the Third Financial Sector Strategy and aims to promote financial inclusion in the State of Qatar.
The new regulations lower the collateral requirements for MSMEs seeking credit, speeding up the credit approval process. MSMEs can now use their POS revenues, whether generated by the financing bank or another bank, as a source of repayment. Additionally, other verified electronic payment revenue streams within Qatar can also be used for financing.
The regulations set a maximum financing limit of 30% of the average total annual revenues of the MSME. The repayment period is extended to up to two years, with a grace period not exceeding six months. These controls are designed to safeguard both the banks and the customers involved in these transactions.
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