This product has been designed to finance individual and corporate entrepreneurs to continue or improve their businesses.
This product offers financial assistance for Micro, Small & Medium Enterprises to achieve their growth potential. This facility has been made available to Banks by the CBSL Monetary Law Act order No 02 of 2021 to provide financial solutions in line with the current market trends.
This product has been designed to finance individual and corporate entrepreneurs (who have been in business for a minimum of one year) to continue or improve their businesses
The following sectors have been identified for future lending procedure of the Bank and it would be covered all the types of business lending.
Agriculture & Fishing |
Cultivation of Tea, Coconut, Rubber, perennial crops, other commercial crops and related product processing activities, horticulture, floriculture, herbal plantation and related activities, Organic fertilizer production and related activities, other agro plantation and related activities, fishing and related activities. |
Manufacturing |
Apparel products – export and domestic purpose, Furniture and wood products, Printing & Publishing, Steel & Metal products, Food & Beverages, Pharmaceuticals & health care, Plastic products, Electronics and electrical components, Leather products Footwear products, Production of medical utilities and related, Domestic cottage industry Rubber & rubber products, Ship & boat building, Cosmetics, Batik & handloom, Gem & Jewelry, Motor vehicle assembly, Porcelain, Ceramic and pottery, Other |
Tourism |
Hotels, Tour Operators & Travel Agents, Hotel Management Services, Restaurants and others |
Transport |
Buses, Lorries, Trucks & Cars, Shipping & Freight Forwarders and others |
Construction |
Building & Housing Construction, Property Development – Commercial and Residential, Others |
IT and Telecommunications |
Telecommunications, computers, Internet, E Commerce, Information Technology – Hardware and Software, others |
Infrastructure |
Mega project Development, Power generation, Water Development, Road development, others |
Credit Facilities will be entertained for the following purposes within the sectors/ sub sectors mentioned above.
Maximum direct and indirect exposure for business development to a single client should be no more than to Rs.50.0Mn. Total group exposure should be limited to Rs.100.0Mn. Facilities above the limit could be accommodated subject to approval of the Board of Directors.
Maximum amount should be 75% of the total project and the balance 25% of the Project should be financed through personal funds. (this could include existing and new investments). The said exposure limit will not be applicable for working capital finance.
Maximum repayment period of the loan is 5 Years. Grace period is 0-6 months. However, repayment period and grace period is not granted automatically and will be at the discretion of the management, considering the projected cash flow. Interest for the grace period should be paid during the grace period by the borrower on a monthly basis. Any deviations should be referred to the ECC.
Types of Credit Facility |
Maximum Repayment period. |
---|---|
Working Capital Permanent working Capital Regular working Capital (Revolving basis) |
Maximum 03 years Maximum 06 months |
Short Term Loan |
Maximum 12 months |
Long term Loan |
Maximum 05 years |
Installments should be paid by the borrower to settle the loan capital and interest through their savings account at SMIB during the loan tenure. Installment type can be designed as per the nature Cash flow of project/business.
As an example, mode of repayment can be decided as per the nature of cash flow such as EMI/Quarter/Semiannual installments might be applied for Agriculture, manufacturing, construction, purchase of fixed assets, working capital facilities and etc. Bullet re-payments might be applied for property development facilities, order specific financing and etc., where interest is service monthly and capital repayment at the end of tenure/specific period, based on the cash flow derived from the project/order.
A special loan facility available to Micro Small Medium Enterprises MSMEs that offer financing solutions to launch a business or...
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