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Tuesday, 11 August 2020 00:02 - - {{hitsCtrl.values.hits}}
NDB lends over 4 billion worth of funds with over 6.5 as a relief measure under the Saubhagya Loan Scheme for businesses affected by COVID-19
NDB Bank has successfully registered over Rs. 6.5 billion worth of funds with over 1,000 applications with the Central Bank of Sri Lanka (CBSL) under the ‘COVID-19 Saubhagya Loan Scheme’ at the rate of 4% per annum in a continuing demonstration of the bank’s commitment in supporting the economic recovery of the country during this post-pandemic era.
Having fully exhausted the funding quota allocated to the bank under Phase 1, NDB is currently in the process of approving facilities both under Phase 11 – COVID-19 Renaissance facility and Phase 111 – Saubhagya COVID-19 Interest Subsidy and Credit Guarantee Scheme.
The Central Bank of Sri Lanka implemented the Saubhagya Loan Scheme in April 2020 to support businesses in their post-pandemic recovery which will be granted at 4% per annum to COVID-19 impacted companies up to a maximum limit of Rs. 50 million per company under the three phases to meet immediate working capital requirements.
Accordingly, NDB has currently received approval from the CBSL for a total of 1,093 applications to the total value of Rs. 6.8 billion. Out of approved loans over Rs. 4.5 billion loans have so far been released approximately among 778 beneficiaries covering all the districts including north and east and the arrangements are being finalised to release the rest of the approved loans without a delay. Loan registration of the COVID-19 Saubhagya loan scheme is to be completed by 31 August.
In September the bank is to introduce another refinancing working capital loan scheme to the Micro Small and Medium Sized Enterprises ‘Emergency Response Facility’ implemented by the Department of Development Finance of the Ministry of Finance, Economy and Policy Developments under the funding sponsorship of Asian Development Bank. Eligible enterprise can avail maximum of Rs. 10 million permanent working capital loan facility repayable over three years period including a grace period of six months at a concessionary rate of interest approximately 6%.
Further, NDB Bank’s ‘NDB Jayagamu Sri Lanka’ initiative which was introduced in order to lend a helping hand to the country’s exporters and innovators via financial and non-financial methods is currently in the process of filling a vacuum that exists in the market today in empowering upcoming entrepreneurs, exporters and innovators which is essential to help set the country on a new growth trajectory.
The bank, which is the 4th largest listed commercial bank in Sri Lanka with a network of 113, is one of the fastest growing banks, having had a cumulative average growth rate (CAGR) in advances by 21% and in deposits by 25% in the last four years. From its inception, NDB Bank, along with the NDB Group has been a catalyst in the development of the nation, strengthening and empowering entrepreneurs, corporates and individuals from all strata of the economy.
