In a bid to further re-iterate its commitment in advocating the economic and social importance of the Small and Medium Enterprise (SME) sector, NDB Bank has partnered the World Bank-funded Small and Medium Enterprise Development Facility Project (SMEDeF).
Entering into agreement with the Government of Sri Lanka, NDB Bank is one of the eight Participating Credit Institutions (PCIs). Any private enterprise operating in Sri Lanka that fulfils the SME criteria is potentially eligible to engage in the loan procedure offered by NDB Bank.
Through SMEDeF, SME’s with an annual turnover of less than Rs. 300 million operating in a large number of sectors are eligible to apply under concessionary interest rates. Maximum amount of refinancing for any sub-project is Rs. 60 million, with a repayment period of 3 years for permanent working capital loans and a repayment period of up to 10 years for investment loans including a maximum grace period of two-years.
NDB Bank is a pioneer in lending to Small and Medium Enterprises since its inception over 30 years ago and has supported over 45,000 ventures employing more than 650,000 people across the country.
While SMEs have always been an important segment of the Bank’s portfolio, it now takes on an even more important dimension with the establishment of our footprint regionally.
Accounting for approximately 97% of all industries in Sri Lanka, the SME sector represents an engine of growth amongst industries. One of the critical elements for SME survival and growth is the access to finance. Studies show that a large number of small scale entrepreneurs face numerous challenges when setting up their ventures due to limited knowledge and skills in financial management and other operational matters. They are also faced with a challenging financial environment and the increasing complexity and extent of financial reporting.
NDB Bank has taken steps to assist these SME in not just their borrowing needs but also by providing them with educative sessions that will help build and nurture their entrepreneurial capabilities. Subjects such as book keeping, finance and account maintenance, management skills, project start-up and related activity as well as SME financing awareness are among these. While the Bank functions as an advisory center to SME’s, it also takes steps to link the suppliers and distributors, thereby promoting of industry verticals.
Through the many credit lines available through NDB Bank, for SMEs as well as its own specialised products such as Divi Arua, NDB Bank hopes to enhance and enable access to finance of SMEs thereby fostering entrepreneurship, competition, innovation and growth.
NDB Bank remains committed to the fostering of an entrepreneurial culture essential for the sustainable development of a nation and remains committed to its mission ‘to be dominant in the financial services sector, creating superior long-term shareholder value and contributing to economic development in Sri Lanka.