Loan Schemes for Re-energizing the MSME Sector

Stimulating Package for Re-energizing the MSME Sector in Sri Lanka Government Funded Loan scheme

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

Non-Performing Loan Category there should be an unsettled loan as the result of economic calamity

  1. No fully closed MSMEs
  2. Category
    • Manufacturing
    • Construction
    • Export-oriented
    • Tourism
    • Apparel
    • Fisheries and Animal Husbandry
    • Agriculture and agro-based
    • Swine Farmers
    • Women-led enterprises at least 51% ownership by women.
  1. No trading, leasing and renting business
  2. Medium, Small and Micro Industries

                              Turnover (last financial year)      – below 1000

                              Employees                                    –  below 200

  1. Registered Industry
  2. At least one Sri Lankan Director

Investment 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

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)

  1. Bank of Ceylon
  2. People’s Bank
  3. Regional Development Bank
  4. Hatton National Bank
  5. NDB Bank
  6. DFCC Bank
  7. Sampath Bank
  8. Commercial Bank
  9. Seylan Bank
  10. Sanasa Development Bank
  11. Cargill’s Bank PLC
  12. State Mortgage and Investment Bank
  13. Pan Asia Banking Corporation PLC
  14. Union Bank of Colombo
  15. Nations Trust Bank PLC

Contact Information

  • Director (Public Enterprises)
    Office : 011 2329 722
    Ext: 375
    Fax :0112-436662
  • Assistant Director(Public Enterprises)
    Office : 011 2323 293
    Ext: 446

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 Registration
* Business Plan

 

Component 1 (Investment Category)

Who can apply

 1. Existing MSMEs survived the crisis and struggled to move on

 2. Start-ups

Total Fund 

Rs 15 Bn

Loan Limit 

Rs 15 Mn

Lending Loan Rate

7%

Re payment Period

10 years (including grace period)

Grace Period

maximum 1 year

Collateral/equity

As determined by the Bank

PFIs Allocation

Maximum Rs. 750 million will be allocated for selected PFIs and after utilizing 80% of the previous allocation the PFIs can request maximum Rs 500 Mn million as additional allocation. 

Non Performing Loan Category ( NPL)

The completed loan recommendation form, together with the required supporting documents, should be submitted to the Ministry of Industry and Entrepreneurship Development either by registered post or by hand. The Ministry’s Expert Committee will evaluate the documents and provide their recommendations to the relevant PFI/Bank, with a copy forwarded to the respective loan applicant.

Required documents

* Loan Application
* Recommended Form
* Field Inspection Report (It should be done by relevant officer attached to the Ministry of Industry & Entrepreneurship Development )
* CRIB Report (i report )
* Business Registration
* Last 3 Years Financial Statements
* Others License related to Industry ( ex. Tourist Board Approval for Hotel Industry)

Submit your NPL recommended form, together with the required supporting documents, to:

Director (Public Enterprises), 
Public Enterprises Division,
Ministry of Industry and Entrepreneurship Development,
No. 73/1, Galle Road,
Colombo 03.

 

 

Component 2 (NPL Category )

Who can apply

MSMEs classified as Non-Performing borrower

Total Fund 

Rs 5 Bn

Loan Limit 

Rs 5 Mn

Lending Loan Rate

8%

Re payment Period

5 years (including grace period)

Grace Period

maximum  6 months

Collateral/equity

As determined by the Bank

PFIs Allocation

Maximum Rs. 200 million  will be allocated for selected PFIs and after utilizing 80% of the previous allocation  the PFIs can request maximum Rs.200 Mn million as additional allocation