Loan Schemes for Re-energizing the MSME Sector (RE-MSME PLUS)
Stimulating Package for Re-energizing the MSME Sector in Sri Lanka Government Funded Loan scheme
Implementing Agency; Department of Development Finance, Ministry of Finance, Planning and Economic Development
Recommendation will be provided the Ministry of Industry and Entrepreneurship Development
Objectives
- Providing concessionary credit facilities to eligible Micro, Small Medium sized Enterprises (MSMEs) sub borrowers through selected Participatory Financial Institutions (PFIs).
- To survive, recover and expand and to provide seed capital for new MSMEs to commence business.
Eligible Criteria of MSMEs
1. MSMEs in operation
2. No fully closed MSMEs
3. Category
o Manufacturing
o Services
o Construction
o Export-oriented
o Tourism
o Apparel
o Fisheries and Animal Husbandry
o Agriculture and agro-based
o Swine Farmers
o Women-led enterprises at least 51% ownership by women.
4. No trading, leasing and renting business
5. Medium, Small and Micro Industries
Turnover (last financial year) – below Rs. 1000Mn
Employees – below 200
6. Registered Industry
7. At least one Sri Lankan Director
Loan can be utilized for
- To purchase assets such as machinery, equipment or furniture for business expansion
- Cost reduction initiatives
- Solar installations or productivity improvement introduce new or advanced technologies
- New construction/ expansions/refurbishment of a factory, building, warehouse and tourism sector-related locations
- For working capital requirements
Loan cannot be utilized for
- Vehicle purchase is not allowed unless it is a land vehicle or sub borrower is in the hotels or tourism sectors.
- Cannot be used for settlement of existing loans
Participating Credit Institutions (PCI’s)
- Bank of Ceylon
- People’s Bank
- Regional Development Bank
- Hatton National Bank
- NDB Bank
- DFCC Bank
- Sampath Bank
- Commercial Bank
- Seylan Bank
- Sanasa Development Bank
- Cargill’s Bank PLC
- State Mortgage and Investment Bank
- Pan Asia Banking Corporation PLC
- Union Bank of Colombo
- Nations Trust Bank PLC
The completed loan recommendation form, along with the required supporting documents, should be directly handed over to the relevant PFI/Bank.
Required documents
- Recommended Form
- Business Name Registration
- Business Plan
| ||
Who can apply | 1. Existing MSMEs survived the crisis and struggled to move on 2. Start-ups | |
Total Fund | Rs 25 Bn | |
Loan Limit | Rs 25 Mn | |
Lending Loan Rate | 5% | |
Re payment Period | 10 years (including grace period) | |
Grace Period | For Investment Purpose – Maximum 1 Year For Working Capital Requirement – Maximum 06 Months | |
Collateral/equity | As determined by the Bank | |
PFIs Allocation | Maximum Rs. 1000 million will be allocated for selected PFIs and after utilizing 80% of the previous allocation the PFIs can request additional allocation. | |
Application