Report: SME demand for credit still low

The demand for bank credit by SMEs remains low, although there was an improvement in perception that banks are lending, according to the latest SME Credit Demand Survey prepared for the Department of Finance.

The survey covers the period from last October to March.

Of the SMEs who had applied for credit at the date of the survey, there was a 60% approval rate. Excluding applications that were still pending, there was an approval rate of 76%. However, the survey found that the conditions attached to loans were becoming more punitive, including more personal guarantees.