Cabinet nod for SME loan scheme

The Government has received the go-ahead from the Cabinet of Ministers to implement a loan program for starting up a small and medium business (SME) or expand one that already exists.

The program, implemented by the Government with the objective of securing funds for the capital and as well as the working capital requirements of the small and medium scale entrepreneurs, will provide funds subject to a maximum of Rs. 50 million with a 10-year repayment period.

Under this loan scheme, loan facilities are provided for business start-ups or for the expansion of the existing businesses.

Ten public and as well as the private sector banking institutions are participating in this loan assistance program.

The Cabinet had granted approval to a proposal made by Minister of Finance and Mass Media Mangala Samaraweera to enter into the relevant loan agreements with the participatory financial institutions.