NDB boosts SMEs with working capital loans via ADB SMELoC Emergency Response Scheme

Friday, 11 November 2022 00:00 - - {{hitsCtrl.values.hits}}

Vice President SME, Middle Market and Business Banking Indika Ranaweera

Senior Manager Refinancing Unit Kapila Deshapriya

National Development Bank PLC (NDB) has been selected for the Additional Emergency Credit Working Capital loan scheme sponsored by ADB.

NDB Bank, always at the forefront of providing assistance to the SME businesses in Sri Lanka, has been selected along with seven other banks to promote the same loan scheme to SMEs that aims to contribute to the local economy, whilst elevating the living standards of the communities in which they operate.

The Asian Development Bank (ADB) selected NDB as one of its partner financial institutions to disburse funds allocated to the SME-Line of Credit (SMELoC) Emergency Response Scheme. The scheme aims to support and strengthen local MSMEs affected by the ongoing economic crisis with working capital credit facilities, placing special emphasis on the manufacturing and service sectors, along with a key focus on agriculture, export, and tourism.

“Given an attractive rate of 11.77% with a three-year repayable period, we are pleased to be part of this significant initiative from the ADB,” said Senior Manager Refinancing Unit Kapila Deshapriya. “Due to the adverse impact as a result of the Easter attacks and the pandemic, NDB is seeking to support its SMEs with funding at concessionary interest rates and loan repayment tenures. We have immediately stepped up to the current situation by making funds available at concessionary rates, and we strongly believe that NDB will play a powerful role in helping to elevate these sectors, thus contributing to the upliftment of the economy.”

“Over the last four decades, NDB Bank has supported MSMEs in the country by offering required technical support and concessionary loan schemes such as ‘Saubhagya’, SMELoC Tea Cultivation, Smile 3, Revolving Fund, and E-Friendly loan schemes,” said Vice President SME, Middle Market and Business Banking Indika Ranaweera.

Furthermore, he stated that SMEs in Sri Lanka are very resilient, and they can come out of the difficulties they are facing now. “As one of the fastest growing banks in Sri Lanka, the NDB Group is uniquely positioned towards assisting the growth and development of the Sri Lankan capital market, and providing its customers seamless access to the product and service offerings of all its group companies.”

The Working Capital loan scheme is available to SMEs who have not availed themselves of the initial opportunity. All SMEs are required to present their business registration and a valid EPL (Environmental Protection Licensing). In addition, a group turnover, which has not exceeded Rs. 750 million p.a. is necessary. They qualify to apply for the loan subject to funding availability.

NDB has made considerable strides towards the Sri Lankan banking and financial sector, making a range of products and services accessible through its growing network.