People’s Bank empowers SMEs with ‘Business Power’ loan scheme

People’s Bank has stepped forward to support the government’s development programme by introducing the “Business Power” loan scheme to empower small and medium enterprises operating in sectors of agriculture, manufacturing, construction, direct and indirect exports, innovation and technology, etc.

The loans are granted in order to boost financial strength of a large segment of the SMEs Island wide including credit facilities at concessionary interest rates through easy payment systems. Sectors that are eligible for Business Power loan schemes include Agriculture (farming, livestock, fisheries, agro produce collectors and intermediaries, small rice millers), Manufacturing industries focused on direct and indirect exports and import substitution, food preparation and distribution, businesses based on innovation and technology as well as Essential Services (health, education, logistics, telecommunications).

Maximum Business Power loan amount for investment purposes is Rs.50 million and permanent working capital requirements is Rs.20 million while the maximum exposure should be Rs.50 million per borrower. For Investment Loans, the maximum repayment period is 7 years with a maximum grace period of 1 year, if required, whereas for working capital loans the maximum repayment period is 3 years with a maximum grace period, of 6 months on need basis.