Sampath Bank further extends support to affected borrowers in 2020

• Announces second debt moratorium for COVID-19 affected borrowers, looking beyond possible impacts to its own bottom line

Offering further assistance to its customers, Sampath Bank PLC extended the debt moratorium to COVID-19 affected businesses and individuals for a second time, from 1 October. This extension was well appreciated by all its customers, judging from the large volumes of applications received from individuals, proprietors, and businesses. 

Going beyond a singular focus on its own bottom line, the Bank has always strived to be empathetic to the needs of the people, especially as the pandemic continues to cause economic hardship to the nation today.

The second extension allowed affected customers engaged in tourism, direct and indirect export-related businesses including apparel, IT, tea, spices, plantation, logistic suppliers, event management and any sectors that have been adversely affected by work disruption to apply for a further three-month grace period. 

The scheme was also extended to Small and Medium Enterprises (SMEs) and individuals engaged in business sectors such as manufacturing, non-financial services, agriculture, construction, value addition and trading businesses including authorised domestic pharmaceutical suppliers, and individuals and businesses who must repay loans in foreign currency and whose incomes/businesses have been adversely affected. 

Furthermore, any business or individual whose business suffered due to local and overseas lockdowns resulting from COVID-19 as well as self-employment businesses and individuals who have lost their jobs or income due to the pandemic were also able to apply. These extensions were granted unreservedly by the bank, despite the significant costs incurred, and is a fitting reflection of its commitment to its customers in their time of need.

Earlier in the year, Sampath Bank introduced an array of relief measures for individuals and businesses affected by the pandemic which included moratoriums on certain loan repayments. The Bank also waived off all cheque return and stop payment charges until 30 September. Small and medium scale businesses and self-employed individuals were offered relief in making repayments on certain leasing facilities and customers with Sampath Bank personal loans or Sampath Leasing facilities of less than Rs. 1 million were provided relief in making repayments. In full compliance with directives issued by the Central Bank of Sri Lanka, these measures were offered despite the Bank being aware of the pandemic’s possible impact on its own performance.

Extending its support further, Sampath Bank introduced an array of special business loans and gold loans at a significantly low interest rate of 9% p.a. under its Revive Sri Lanka initiative to help medium and large-scale businesses. The bank also waived off processing fees and penalties on early settlements and facilitated customer requests for a capital grace period of 12 months on capital loans and six months on working capital loans. 

A three-month gold loan at a significantly low interest rate of 9% p.a. was announced to support individuals and small-scale businesses with their urgent cash requirements which was again the lowest interest rate on gold loans in the market.

In line with the Sri Lankan Government’s intention to increase the use of solar power among commercial and residential sectors, the bank introduced a solar loan facility, especially tailor-made for projects to set up solar power units on the rooftops of domestic households and industrial   establishments. Under this loan scheme, owners of residential or commercial buildings could obtain loans to install solar power generating units up to a maximum of 50 KWh. 

These loans are offered at an interest rate of 8% while a maximum loan repayment period of up to 10 years can be granted. Factories and offices were also offered attractive interest rates, with a minimum of Rs. 50 million required to be taken. A maximum loan repayment period of up to 15 years was offered, with a six-month grace period obtainable if required.

The bank’s credit card customers saw a reduction in the interest rate to 15% from 28% for local transactions up to a cumulative value of Rs. 50,000 and minimum payment was lowered to 2.5% from 5% of the statement outstanding. SampathCards also offered 0% interest extended settlement plans on a wide range of essential expenses while the Sampath Bank app was upgraded to include a host of selfcare features which minimised the need to travel and offered greater convenience to customers. To provide customers with safe access to their funds during the lockdown, the Bank partnered with PickMe to enable the delivery of cash withdrawn from an ATM directly to the customer’s doorstep.