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
- No fully closed MSMEs
- 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.
- No trading, leasing and renting business
- Medium, Small and Micro Industries
Turnover (last financial year) – below 1000
Employees – below 200
- Registered Industry
- 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)
- 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
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 |