Small and Medium Enterprises Development (SMED) Scheme (Loans, STLs, Letter of Credit Facilities, PODs)
We are passionate about being responsible and leading social change through our banking products and the way we do business. Our primary objective is to work toward ensuring that all Sri Lankans have access to affordable financial products and services to help them grow. We are good with finances, but we are even better with "People", our SME loan schemes are designed to provide our customers with financial assistance to make things easier.
- Features
- Eligibility
- Contact Us
Features
Interest Rate
Maximum Amount
- On the need basis upon evaluation.
Repayment Period
- Maximum10 years, including a maximum grace period of 24 months. (if required).
Securities
- Guarantees, Mortgage over a movable or immovable property or any other security acceptable to the bank.
Interest Rate
- AWPLR +3.5% (Monthly review- Floor Rate 22%)
Maximum Amount
- On the need basis upon evaluation.
Repayment Period
Maximum Amount
- The maximum amount will be decided based on working capital requirements.
Securities
- Any security acceptable to the bank
Interest Rate
- AWPLR +3.5% (Monthly review- Floor Rate 22%)
Maximum Amount
- The maximum amount will be decided based on working capital requirement.
Repayment Period
- POD facilities less than Rs. 5.0 Mn valid for three years (3 Years) subject to an annual review.
- All facilities above or equal Rs. 5.0 Mn should be valid for 365 days (1 Year) subject to an annual review.
Eligibility
Business activities of small and medium scale enterprises. Businesses having an annual turnover of Rs. 15 Million to Rs. 750 Million and Business startups with an equity investment of Rs 1.0 Million to Rs. 5.0 Million.
Investments and working capital requirements will be funded for the following projects/ Businesses:
- Agriculture
- Agri-oriented Projects/Businesses
- Industrial Businesses
- Trading Businesses
- Milk and Dairy Related Projects
- Livestock
- Ornamental Fish
- Fisheries Industry
- Information Technology
- Apparel Industry
- Tourism and Hotel Projects
- Construction of Buildings
- Printing
- Educational
- Service Provisions
- Export and import Businesses
- Health Services
- Any other economic activities
- Facilities for settlement of Credit Facilities in other Banks and Financial Institutions
Small and Medium- Sized Enterprises Line of Credit Project- (SMELoC Revolving Fund)
- Features
- Eligibility
- Contact Us
Features
Operational Regions
Interest Rate
- 11.6% per annum in regular repayment
Maximum and Minimum Amount
- Maximum of Rs.50.0 Mn.
- A single borrower may avail multiple loans, but the gross principle of those loans is capped at Rs.50.0Mn
Securities
- Personal guarantees, mortgage of movable or immovable properties or any other securities acceptable to the Bank.
Repayment Period
- Investment Loan – repayment period considered maximum up to year 2028
- Loans granted for purchasing of machinery, equipment, and furniture, repayment period should be restricted to a maximum up to the use of lifetime of the machinery, equipment, and furniture.
- Working Capital Loan - maximum two years. No grace period could be considered.
- The maximum grace period will be two years. (Only for the investment loans with tenure over three (3 years.)
Eligibility
- The enterprises must be registered. Applicants who have not formally registered may qualify to obtain loans if they can submit evidence that its business registration application has been accepted by the Department of the Registrar of Companies or local government authority.
- Borrowers must be economically and financially viable.
- Borrowers may not be related parties of the Bank’s Board or senior management.
- Borrowers (the parent company and any subsidiaries) must have annual turnover under Rs. 750.0 Mn and less than 300 employees if in the manufacturing sector or less than 200 employees if in the service industry.
- Enterprises with turnover below Rs. 750.0 Mn
- Agriculture
- Agri-oriented Projects/Businesses
- Industrial Businesses
- Trading Businesses
- Milk and Dairy related Projects
- Livestock
- Ornamental Fish
- Fisheries Industry
- Information Technology
- Apparel Industry
- Tourism and Hotel Projects
- Construction of Buildings
- Printing
- Educational
- Service Provisions
- Export and import Businesses
- Health Services
- Any other economic activity
SMELoC Additional Financing III COVID-19 Emergency Response Facility (Working Capital Loan)
- Features
- Eligibility
- Contact Us
Features
Operational Regions
Interest Rate
- Investment loan – 8.8% (fixed for the entire tenure)
- Investment loan – 8.8% (fixed for the entire tenure)
Securities
- Personal guarantees, mortgage of movable or immovable properties or any other securities acceptable to the Bank.
Maximum Amount
Grant – We-Fi
- Qualified enterprises led by women are entitled for 10% to 25% of the principal loan amount as a grant. (Conditions applied)
Repayment Period
- Repayment period considered maximum up to 3 years.
- The maximum grace period will be six months.
Eligibility
- Borrowers must be economically and financially viable.
- Manufacturing
- Agriculture
- Fisheries
- Tourism
- Agro Processing
- Animal husbandry
- All export oriented business
The enterprises must be registered. Applicants who have not formally registered may qualify to obtain loans if they can submit evidence that its business registration application has been accepted by the Department of the Registrar of Companies or local government authority.
“Business Power” Loans
"Business Power" is a Loan scheme implemented to make banking access to a wider segment of SMEs, agriculture, construction, exports, innovations and technology-based businesses.
- Features
- Eligibility
- Contact Us
Features
Operational Regions
Interest Rate
- AWPLR+3.5% (Monthly review- Floor Rate 22%)
Loan Amount
- The maximum loan amount for investment purposes is Rs. 50.0 Mn per borrower.
- The maximum loan amount for permanent working capital requirement is Rs. 20.0 Mn per borrower.
- However, the maximum exposure under this loan scheme should be Rs. 50.0 Mn. per borrower.
Repayment Period
- The maximum repayment period should be seven (7) years including a maximum grace period (if required) of one (1) year for investment loans.
- The maximum repayment period should be three (3) years including a maximum grace period (if required) of six (06) months for working capital loans.
- Interest should be serviced during the grace period.
- Repayment could be arranged based on the cash flow patterns of the respective businesses. (Ex; Monthly, once in two months, once in three months.)
Eligibility
- Agriculture (farming, livestock, fisheries, agro produce collectors and intermediaries, small rice millers)
- Manufacturing industries focused on direct and indirect exports and imports substitution.
- Food and Beverages
- Innovation and technology-based businesses.
- Essential services (Health, Education, Logistics, Telecom)
- Construction
- No trading purposes are considered under this loan scheme.
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