People’s Bank to boost SMEs with Rs. 15 b allocation for loans at 6%

Friday, 26 June 2020 00:45 -     - {{hitsCtrl.values.hits}}

In line with the Government’s development program and with the aim of uplifting the small and medium businesses adversely affected by the COVID-19 pandemic, People’s Bank has introduced a special loan scheme with an interest rate of just 6%. 

The Bank has allocated Rs. 15 billion for this purpose. The unexpected impact of the COVID-19 outbreak is a significant threat to the economy of Sri Lanka. In order to curb the spread of this deadly virus, the entire country went into lockdown on 16 March causing a slowdown in the country’s economy. As a result, micro, small and medium-scale businesses that included agricultural, fisheries, manufacturing, livestock, construction, other crops and several other industries were negatively affected.

People’s Bank has come forward to bear the responsibility of providing much-needed financial solutions to these industries that have been adversely affected in this manner so that they can move towards a rapid economic recovery. 

As a result, in accordance with the clear guidelines and direction of the Government, the Chairman and Board of Directors together with the management of the Bank have made arrangements to introduce a number of new loan schemes, with many offering single-digit interest rates, to bring financial relief to the various industries that have been affected.

People’s Bank introduced this loan scheme to provide loans to businesses in parallel with the ‘Saubagya COVID-19 Renaissance Facility’ of the Central Bank of Sri Lanka (CBSL). Companies involved in manufacturing, agriculture, small industries, information technology, tourism, tea and logistics are all eligible to obtain these loan facilities. The scheme offers up to a maximum of Rs. 10 million with a three year repayment period.

People’s Bank has made arrangements to disburse these loans through its islandwide network of 737 branches. Further information can be obtained from the nearest People’s Bank branch.