Manjula Hettiarachchi, Director General of the Development Finance Department of the Ministry of Finance, Planning and Economic Development, announced that 15 banks have begun offering loan facilities of up to Rs. 1.5 million to small and medium-sized entrepreneurs who have obtained loans from financial institutions but are unable to repay them.
These loans will have a repayment period of up to five years, including a six-month grace period, with an interest rate of 8%.
The loan facilities are available through Bank of Ceylon, People’s Bank, Nations Trust Bank, Commercial Bank, Sampath Bank, Hatton National Bank, National Development Bank, Seylan Bank, Regional Development Bank, DFCC, SANASA Development Bank, Pan Asia Bank, Union Bank, Cargills Bank, and the State Mortgage and Investment Bank. A key feature of this scheme is that borrowers can obtain these loans without providing land or other property as collateral.
Hettiarachchi further stated that small and medium-sized entrepreneurs who have previously obtained bank loans and have either fully repaid or are currently repaying them can also access loans at a reduced interest rate of 7% for up to 10 years. These borrowers are eligible to obtain up to Rs. 2.5 million, with a one-year grace period for repayment.
