Hundreds of tertiary education students in Tonga who wanted to continue studying overseas are now eligible for lower-cost-credit loans under a new Government-backed scheme launched last week.
The TP$10 million funding scheme, administered by Tonga Development Bank, allows TP$25,0000 funding for tertiary students to pay for their school fees and course related-costs.
The government agreed with the bank to offer loans to borrowers at 1 – 4 percent interest per year.
The 2014/15 government budget initiative will also benefit new businesses, support investments in rural areas and outer islands and promote small scale and family owned businesses.
Other beneficiaries included agricultural, fisheries, forestry, engineering and manufacturing sectors.
Tonga’s Minister for Finance and National Planning, Hon. Dr ‘Aisake Eke said: “This is part of a series of government led initiatives including the Investment Incentives launched recently which aims to expand private investment and to make Tonga an attractive destination for both domestic and foreign investment by enacting investor friendly policies, introducing new incentives to key growth areas and facilitating ease of doing in business.”
The CEO for the Ministry of Finance and National Planning Tatafu Moeaki together with Mrs. Lita Kami, Managing Director and CEO for Tonga Development Bank signed the agreement on behalf of their respective agencies.
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The new loan scheme is allocated as follows:
| Funds | General Objectives | Repayment Period | Max Loan |
| Agriculture Marketing and Production Fund |
| 9 monthsRepaid end of period | T$100k |
| Fisheries Development and Export Fund |
| 9 monthsRepaid end of period | T$30k |
| Tourism Loan Fund |
| 1 yearRepaid end of period | T$25k |
| Manufacturing Loan Fund |
| 1 yearRepaid end of period | T$25k |
| Livestock Loan Fund |
| 9 monthsRepaid end of period
| T$50 |
| Forestry Loan Fund | 1. To support forestry investment with economic benefits which might also benefit the community and aims at improving living conditions in rural areas. 2. To support nurseries specifically for sandalwood seedlings production and other seedlings such as fruit trees, vegetable seedlings etc. | 9 monthsRepaid end of period | T$50k |
| Construction Loan Fund | 1. To support and cater for investments that require capital equipment , tools and safety gear. 2. To provide capacity building and training in specialized fields. | 9 monthsRepaid end of period | 1.T$50k2.T$10k |
| Retail and Wholesale Loan Fund | 1. To support small medium enterprises in the retail and wholesale business with expansion and service development. | 9 monthsRepaid end of period | T$25k |
| Other priority sectors | 1. To support other financially viable investments currently not provided for in the current fund allocation. | 9 monthsRepaid end of period | T$25k |
| Student Overseas Tertiary Education Loan Fund |
| 4 yearsRepaid end of period | T$25k |
